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Converting Euro income to Sterling

 
 
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      03-14-2011, 04:47 PM
I have a potential client who is resident in the UK but working remotely for a company in the EU.

He is paid in Euros into his personal EU bank account and then choosing when to convert (waiting for a favourable exchange rate) to sterling and transferring to the UK company bank account.

As I understand it in the accounts I should normally count the invoice and payment dates as the date the transaction occurs. However the fact that the money goes through a personal account confuses the matter.

Should I tell him he must just be paid direct to the company bank account and take the exchange rate hit?

Thanks for any advice on this.
 
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      04-28-2011, 03:32 PM
Why doesn't the company open a euro bank account so that it can be paid directly in euros? That avoids the funds going through the director's personal bank account. The company then has discretion over when it transfers the funds from its euro account into its sterling account, so it can try to minimise any exchange rate hit.
 
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