The euro: Frequently Asked Questions about the euro - Payment of Tax and NICs
Contents
- Which tax and national insurance liabilities can I pay in euro?
- What charges will be made for converting euro payments into sterling?
- What exchange rate do I use to convert my sterling tax and national insurance liabilities into a euro amount for payment?
- What happens if the converted amount is either too much or too little?
- If I make tax payments in euro will any repayments be made to me in euro?
- Can I pay my UK tax bill directly from my euro account based in a euro-area country? If so, how?
Q. Which tax and national insurance liabilities can I pay in euro?
A. You can pay any tax or national insurance liability in euro, and we will convert the payments into sterling.
You can pay by:
|
CHAPS |
Clearing House Automated Payment System |
|
BACS |
Bankers Automated Clearing System |
|
CHEQUE |
Euro denominated cheque |
|
CASH |
euro (notes only) |
Further details about euro payment procedures can be found in HM Treasury Factsheet 7
Q. What charges will be made for converting euro payments into sterling?
A. We will not pass on to you any of our administrative costs for converting euro into sterling unless it is a euro payment drawn on an overseas bank account. However, we will not meet the risk of any currency value fluctuations.
Q. What exchange rate do I use to convert my sterling tax and national insurance liabilities into a euro amount for payment?
You have to estimate the exchange rate at the time of payment, because the actual rate used is the one in force when the clearing bank presents your payment. This rate cannot be predicted in advance by the Inland Revenue, so we cannot set a rate for you.
There are a number of different sources of information that can help you make an estimate of the exchange rate on the day of payment. These include:
- Bank of England website
- High Street Banks
- HM Customs & Excise Daily Exchange Rates Helpline (01702 366349)
- Ceefax / Teletext
Q. What happens if the converted amount is either too much or too little?
A. The rate of exchange between sterling and the euro can vary
many times during the same day , as with any other currency. The exchange
rate used is the one in force when your payment is presented by the clearing
bank. If the rate used for converting euro into sterling leaves a shortfall,
you may have to pay the difference. If you overpay, any repayment arising
will be made to you in sterling.
Although you cannot totally eliminate the risk of shortfall or overpayment
, you can minimise it by using CHAPS or BACS rather than cheque. Both
of these methods reduce the time it takes for the payment to be cleared
through the banking system.
Q. If I make my tax payments in euro, will any repayments be made in euro?
A. No. All tax repayments are made in sterling, including overpayments due to exchange rate fluctuations.
Q. Can I pay my UK tax bill directly from my euro account based in a euro-area country? If so, how?
A.There are a number of methods of payment that can be used from euro bank accounts held overseas, depending on the value of the payment:
1) A CHAPS transfer to the relevant Inland Revenue bank, which will be accepted for any amount. This is our preferred method of payment from an overseas account, and is also the best method for you to minimise your risk of overpayment or underpayment due to exchange rate fluctuations.
2) A euro cheque (drawn on an overseas euro account), which will be accepted only if your tax liabilities are over £50. (Cheques for less than the equivalent of £50 that are drawn on an overseas euro account would be returned, because of the high bank charges for conversion.)
3) A Eurocheque (from a Eurocheque account) will be accepted providing individual Eurocheques do not exceed the equivalent of £700. (Eurocheques for less than the equivalent of £700 cost the same as a sterling cheque to process, but Eurocheques for more than £700 incur higher bank charges for conversion.) If your tax liabilities exceed £700, then more than one Eurocheque can be submitted for a single tax liability, but each individual Eurocheque should not exceed the equivalent of £700.
CHAPS Payments
If you choose to use the CHAPS method, then you will need the bank details of your Inland Revenue Accounts Office - Cumbernauld or Shipley.
The relevant Accounts Office is shown on your tax demand notice.
Cumbernauld CHAPS Account Details
Sort Code: BKENGB2L
Account Number: 24921211
Shipley CHAPS Account Details
Sort Code: BKENGB2L
Account Number: 24921114
Further details about euro payment procedures can be found in HM Treasury Factsheet 7
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