Average Exchange Rate 2021

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fyfin
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Average Exchange Rate 2021

Postby fyfin » Tue Jan 04, 2022 12:32 pm

I know I'm far too early again as usual but I'm working on my spreadsheet and got everything else entered, so just wondering what figure to use for last year.
I have found somewhere that the average exchange rate for 2021 was €1.1632 but I know my accountant will probably want to use the rate at 31st December which is €1.19, I believe (I know I could do my own return but she only charges €30, and having done hundreds in UK I can't be *beep* over here lol).
Has anyone got an official source for the average as I'm not sure if mine is correct.
In theory, I suppose you could use what you consider an average and so long as you could justify it, they probably wouldn't argue.

Anyway, Happy New Year and I'll appreciate any thoughts on it.
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costakid
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Re: Average Exchange Rate 2021

Postby costakid » Tue Jan 04, 2022 12:45 pm

I suppose your bank or a money exchange bureau may be able to help. They must have some software system for that.

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costakid
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Re: Average Exchange Rate 2021

Postby costakid » Tue Jan 04, 2022 12:47 pm

just had a quick google and HMRC have an average on their website so i am confident the Spanish will have the same.

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fyfin
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Re: Average Exchange Rate 2021

Postby fyfin » Tue Jan 04, 2022 12:54 pm

costakid wrote: Tue Jan 04, 2022 12:47 pm just had a quick google and HMRC have an average on their website so i am confident the Spanish will have the same.
Didn't think of looking at HMRC , I see their average is €1.159233 and €1.1911 for spot rate on 31st.

Not sure if Hacienda have the same but I have something to work with. Thank you.
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Wicksey
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Re: Average Exchange Rate 2021

Postby Wicksey » Tue Jan 04, 2022 1:54 pm

Seems unfair to use the final rate rather than the average, after all, your money was received throughout the year, not all on the 31 December (I presume!).

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Re: Average Exchange Rate 2021

Postby El Cid » Tue Jan 04, 2022 2:04 pm

It is incorrect to use the end of year rate. You use the average for the year. If you use the year end rate this year, you will pay too much tax. The reason your accountant is cheap is because she doesnt know what she is doing.

I will look up the rate and post it in due course.

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Re: Average Exchange Rate 2021

Postby fyfin » Tue Jan 04, 2022 3:17 pm

Lol Sid. She will do what I tell her. I only went with it last time because it was to my advantage.
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Re: Average Exchange Rate 2021

Postby markwilding » Tue Jan 04, 2022 3:24 pm

The first time I did my return in Spain I wasted my time working out the average rate. My Gestor now just looks the rate up which I suppose can be found on the Hacienda website. I pay around 60 Euros per year for the annual return and about 47 Euros every 3 months for the quarterly accounts. which I think is quite reasonable. However, mine is quite simple compared to some who have to charge IVA.

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Re: Average Exchange Rate 2021

Postby El Cid » Tue Jan 04, 2022 5:02 pm

According to the ECB the average rate for 2021 was 1.1636

I am not aware that AEAT publish a rate as it is down to the declarer to declare in Euros. If you have a variable income it is worth converting each payment using the date of the payment.

My UK state pension is paid direct to my Spanish account in Euros so I just use the actual amounts paid in.

Sod

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Re: Average Exchange Rate 2021

Postby markwilding » Tue Jan 04, 2022 5:56 pm

Now and again the gestor and I have a chat so next time I speak to him, I'll ask him how he calculates it. Every year it is done a little differently depending on whether it's better to join my wife's income with mine, Last year I got a provisional amount. a refund, from hacienda which had to be adjusted once UK income was included. I don't remember it being done like that before.

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Re: Average Exchange Rate 2021

Postby El Cid » Tue Jan 04, 2022 7:26 pm

It’s called a Borrador. They assume your income stays the same and send you a message or email telling you what they think your tax should be. You either accept it or modify it. It really does not work if you have a variable income and any overseas income, by definition, varies due to the exchange rates. It is also geared to people who have already paid tax via PAYE. Sadly not much use for expats but they are trying hard to simplify the system.

It’s worth noting that the Spanish online tax system is years ahead of what is available in the UK.

Sid

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peteroldracer
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Re: Average Exchange Rate 2021

Postby peteroldracer » Wed Jan 26, 2022 6:49 pm

Trying to get a few jumps ahead with totting up the figures for my Renta 2021: halfway through the year our Yorkshire Bank accounts were changed to Virgin Money, and they started paying a small amount of interest, Although this should be welcome it of course means I have to declare the totals. Can I just add the interest total to the pension income, or is there a specific box for declaring bank interest received? I don't suppose I can claim for the bank charges, but for the sake of avoiding a call from the enforcement squad if they see the income I would rather declare it - the question is how?
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Re: Average Exchange Rate 2021

Postby Free at Last » Wed Jan 26, 2022 7:18 pm

The figure for interest goes in a different box to earned or pension income. The wording for this box says

Intereses de cuentas, depósitos y de activos financieros en general

Last year it was box 0027 but sometimes the box numbers change from year to year.

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Re: Average Exchange Rate 2021

Postby peteroldracer » Wed Jan 26, 2022 9:11 pm

FaL - you must be part of a rapid response team! Thanks a lot.
Just peeked at the Agencia Tributaria website - looks like they have been doing a lot of work, at least on the English version to make it easier to find ones way round.
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peteroldracer
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Re: Average Exchange Rate 2021

Postby peteroldracer » Thu May 05, 2022 9:09 am

Free at Last wrote: Wed Jan 26, 2022 7:18 pm The figure for interest goes in a different box to earned or pension income. The wording for this box says

Intereses de cuentas, depósitos y de activos financieros en general

Last year it was box 0027 but sometimes the box numbers change from year to year.
May I ask what information I should put there - apart from the total sum? Do they want account numbers, name of bank or just how much?
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Re: Average Exchange Rate 2021

Postby Free at Last » Thu May 05, 2022 4:26 pm

peteroldracer wrote: Thu May 05, 2022 9:09 am
Free at Last wrote: Wed Jan 26, 2022 7:18 pm The figure for interest goes in a different box to earned or pension income. The wording for this box says

Intereses de cuentas, depósitos y de activos financieros en general

Last year it was box 0027 but sometimes the box numbers change from year to year.
May I ask what information I should put there - apart from the total sum? Do they want account numbers, name of bank or just how much?
Only the amount of interest is asked for, nothing more (just as with earned income or pensions, where you don't need to show where the income comes from, only the amount).


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