How to add a foreign currency bill
This article explains how to add a bill in a currency other than pounds sterling (GBP), such as euros or dollars.
You might need to add a foreign currency bill if you have a supplier based in another country or if you incurred expenses while you were abroad.
Please note that you can only enter a bill in one currency as it’s not possible to have multiple line items in different currencies on the same bill. For example, you can’t have one line item in United States dollars (USD) and another in pounds sterling (GBP). These would need to be entered as separate bills instead.
Before you start
Check that the supplier you are adding the bill for has been added as a contact, either by uploading their information into FreeAgent, importing them from Basecamp or manually adding them as a new contact, before following the steps below.
Adding a foreign currency bill
Navigate to the 'Bills' tab at the top of the screen.
Select ‘Add New Bill’ and follow the steps for adding a bill in FreeAgent.
Choose the currency you want to show on the bill from the ‘Currency’ drop-down menu.
If you're registered for VAT, be aware that there are different VAT options depending on where you purchased the good or service. If you’re unsure which VAT option you should choose, please ask your accountant.
If you have brought goods in from outside the EU then you might be able to claim UK VAT, if you have an import VAT certificate (form C79).
Once you have entered the necessary details for the bill, select ‘Save and Continue’ and then add the relevant line items in the foreign currency.
When entering the purchase, you'll need to enter the amount of UK VAT that you’re reclaiming for that line item, in the ‘VAT Reclaimable’ field. Please note that this amount will be in pounds sterling. Also, make sure to not include any local sales tax that your supplier may have charged you.
If you have spent money abroad and incurred local VAT, you can’t reclaim that VAT in the UK using your normal VAT return. In this case, just leave the amount in the 'VAT Reclaimable' box as £0. Please note that if your journey was to a country in the EU then you may be able to use HMRC's Refund Scheme to reclaim the VAT.
If you have selected this bill to recur, the recurring bills will always be converted using the exchange rate on the day they recur. For example, a $100.00 recurring bill will likely fluctuate slightly to reflect the current exchange rates.