Can a UK business draw up its tax computation and other supporting calculations in euro?
A. Yes. A UK business can normally prepare and submit most of its tax computation in euro, but it would have to convert the final figures into sterling to complete its tax return. However, the detailed answer depends on the accounting period that you are referring to, because the Finance Act 2000 simplified the way that Company Tax is computed by companies who keep their accounts in euro (or in any other foreign currency): For periods beginning after 31 December 1999 Any company that draws up their accounts in euro can compute their profits in euro and translate the result into sterling. For periods beginning on or before 31 December 1999 If your company had made a ‘local currency election’, and drew up its accounts in euro, you could compute your company’s profits in euro and translate the result into sterling. If your company had not made a ‘local currency election’, you would have had to take your euro accounts and work out what exchange gains and losses would have arisen had the ac
