Managing foreign exchange and transactions

For many businesses with operations overseas, import VAT and export issues have long been a tricky area to navigate made even more complex since Brexit.

Cash flow can be a struggle due to foreign exchange. With some clients experiencing shock at the end of the year when they see their ‘foreign exchange losses’.

Foreign exchange losses or gains occur when a business is buying or selling services or products in a foreign currency and the exchange rate changes throughout the year. If there is a decline in your currency this means there is a foreign exchange loss.

Are you struggling to navigate the import and export rules since Brexit?

McKenzies has a wealth of experience and can help clients understand the rules for import VAT duty and reporting requirements which can help with foreign exchange transactions and losses.

With our specialist VAT advice, we help ensure firms systems are set-up to meet requirements and we can help monitor throughout the year. Through our budgeting and forecasting advice, our accountants can help keep businesses on track and cash flow in check with up-to-date reporting of foreign currency gains and losses.  

We can also help make introductions to foreign exchange specialists and bank managers to help mitigate exposure to foreign exchange losses.

Importing and exporting goods

For those embarking on importing or exporting goods from the UK or would like a refresh on the rules, HMRC has a thorough checklist for businesses importing goods into the UK which you can find here.

The importing guide includes information such as working out the value of your goods so that duty and VAT can be calculated through to finding out if you can delay or reduce duty owed as well as claiming a VAT refund if you are VAT registered.  

If you are exporting goods from the UK then this HMRC guide will walk you through the exporting process. The guide includes links to the rules around licences for exporting through to getting your business export ready such as obtaining an EORI number and whether you need to be VAT registered to export. As well as the details you need for getting goods through customs and how to bring rejected goods back to the UK.

McKenzies Accountants, Oxted

To benefit from our specialist tax advice for import and export duty to help you manage foreign exchange gains and losses, get in touch today.