Is it legal?
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Is it legal?
Hey folks,
Just a quick question, you sign a contract for a salary in Euros and then you ask the for the purpose of tax credits your salary in sterling, you get a reply which gives an exchange of 0.6 and thus taking thousands of your salary in euros is this legal?
My contract states it is an equivelant amount I will earn and gives no exhange factor.
Anyone know if there's anything I can do?
Kempus
Just a quick question, you sign a contract for a salary in Euros and then you ask the for the purpose of tax credits your salary in sterling, you get a reply which gives an exchange of 0.6 and thus taking thousands of your salary in euros is this legal?
My contract states it is an equivelant amount I will earn and gives no exhange factor.
Anyone know if there's anything I can do?
Kempus
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Hi,
Sorry in my moment of anger I may have phrased it wrong.
The current exchange rate shows €1 to be worth £0.78.
I am currently receiving a salary which gives €1 to be £0.60.
When thousands are involved the difference becomes considerable!
kempus
Sorry in my moment of anger I may have phrased it wrong.
The current exchange rate shows €1 to be worth £0.78.
I am currently receiving a salary which gives €1 to be £0.60.
When thousands are involved the difference becomes considerable!
kempus
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It is not very clear what you are asking ? If you mean you are being paid in sterling at a euro equivalent rate, then the answer is simple for tax purposes your salary will be whatever you received in sterling for any given tax year.
If you are paid in euros ( for some reason) and have a liability to tax in the United Kingdom, then you would have to convert it to sterling at a declared rate and submit that figure. The revenue can then either accept it, reject it, or require you to provide evidence of the amounts you received.
As you know currency exchange rates fluctuate all the time, so if you are paid in sterling your contract should state the sterling amount you will be paid. If you are paid in euros likewise.
If you believe your employer is short changing you by quoting a salary in one currency, but paying you in another, then ask them to clarify the rates of exchange they are using and how they justify those rates ? If you are still not satisfied, then open a euro account and have your salary paid into that. That way you have some control over the exchange rates used.
The actual wording of your contract of employment may be worth reading again. In addition there is some useful advice on this HMRC page.
A relevant extract reads :
If you are paid in euros ( for some reason) and have a liability to tax in the United Kingdom, then you would have to convert it to sterling at a declared rate and submit that figure. The revenue can then either accept it, reject it, or require you to provide evidence of the amounts you received.
As you know currency exchange rates fluctuate all the time, so if you are paid in sterling your contract should state the sterling amount you will be paid. If you are paid in euros likewise.
If you believe your employer is short changing you by quoting a salary in one currency, but paying you in another, then ask them to clarify the rates of exchange they are using and how they justify those rates ? If you are still not satisfied, then open a euro account and have your salary paid into that. That way you have some control over the exchange rates used.
The actual wording of your contract of employment may be worth reading again. In addition there is some useful advice on this HMRC page.
A relevant extract reads :
The exchange rate to use would be the rate for the day the calculation is performed, and would therefore vary every time the payroll is run. The Bank of England issues the exchange rates, and there are a number of different sources of information that can help you establish the exchange rate on a particular day. These include:
a) Bank of England website
b) High Street Banks
c) HM Customs & Excise Daily Exchange Rates Helpline (01702 366349)
d) Ceefax / Teletext
a) Bank of England website
b) High Street Banks
c) HM Customs & Excise Daily Exchange Rates Helpline (01702 366349)
d) Ceefax / Teletext
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What does your signed contract say exactly? Does it impyl a fixed rate of 0,6 or is it perhaps a monthly exchange rate average? Think the first would be very easy for the company, but you would benefit a lot more from the latter. But why not just get paid in Euros?
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Without putting all my personal details up the contract says,
"Your pay will be at the equivalent rate of Exx,xxx gross per annum"
Thats the first line of section 5 in my contract. It gives no mention of an exchange rate anywhere in the contract however it does state I must have a UK bank account.
Thanks for your replies by the way!
Kempus
"Your pay will be at the equivalent rate of Exx,xxx gross per annum"
Thats the first line of section 5 in my contract. It gives no mention of an exchange rate anywhere in the contract however it does state I must have a UK bank account.
Thanks for your replies by the way!
Kempus
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Why don't you just accept the salary in Euros and have it transferred to a GBP account, during the transfer it shall be exchanged at the bank's rate of the day and arrive into your account in GBP thus you shall not be diddled out of any monies and your bank statements may verify your earnings in GBP?
