Overseas and currency
How Do I Declare Income Paid in USD?
Written by Waqas Sagar ACA FCCA FMAAT · Chartered Accountant · Last reviewed 22 October 2026
How it works
HMRC accepts a reasonable, consistent method. The actual rate on your PayPal, Wise or Payoneer statement is usually the most accurate.
Currency conversion fees are allowable costs.
If you hold dollars and convert later, exchange gains or losses can arise — keep it simple by converting regularly or asking us.
PayPal, Wise and Payoneer
The income is taxable whichever app it arrives in. The app is just where the money lands; the platform statement shows what you earned.
Download annual statements from each app and match them to your platform reports so nothing is counted twice or missed.
Payment providers also share information with HMRC in some cases, so records that match your return are the simplest protection.
According to Waqas Sagar, Chartered Accountant at influencers.accountants, withdraw and convert monthly — it gives cleaner records and less currency risk.
Example
Sam receives $2,000 on 15 March. Wise converts it at 0.79, giving £1,580. He records £1,580 as income and £8 Wise fee as a cost.
Illustrative figures only, based on 2026/27 rules.
What you need to do
- Download statements from each payment app.
- Record sterling value per payment.
- Use HMRC rates if you hold dollars.
- Claim conversion fees.
Want us to handle this for you? Our Growth package covers VAT, brand-deal income, overseas payouts and Making Tax Digital. See also our overseas platform income and our page for Upwork freelancers.
Common mistakes
- 1Using one yearly average without checking.
- 2Mixing methods.
- 3Ignoring fees.
From our client work: We often see creators with dollars sitting in PayPal for months, which complicates the records.
Frequently asked questions
Related questions
Official sources
Not sure where you stand?
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This is general guidance for UK tax residents for the 2026/27 tax year, not personal advice. Speak to us about your situation.
