Contractors: How to make the most of your foreign currency payments

Many freelancers and contractors earn a living by doing work for clients all over the world, meaning they get paid in different currencies. Although this is often a complicated transaction, it doesn’t have to be. Below are a few tips for being paid in a different currency.


Getting paid

Being paid in various currencies can mean you lose out on money. Unfavourable rates can leave you short-changed – and that’s before the bank takes their share.

Sign up with an exchange rate notifier and compare rates with a currency converter to ensure that your wages aren’t eroded by unpredictable currency fluctuations.

Over time you could save a large chunk of change just by being wise with how you transfer your hard-earned cash.

Different currencies, different cultures

It’s important to understand that different countries have different cultural nuances around payroll, as this might influence your pay cheque. For example, in Portugal overtime is rare and in some cases illegal and, in many countries, it is customary to pay employees bi-weekly rather than monthly.

Keep the written and unwritten rules in mind when being paid by employers in different countries.

A note on tax

You will usually need to fill in a Self Assessment tax return if you’re a UK resident receiving foreign income. The deadline for Self Assessment tax returns is 31 January if you file online.

You do not have to fill in a tax return if your only foreign income is dividends under £300 in total and you don’t have anything else to report.

Need to transfer some cash? Our forex team offers rates that are guaranteed to beat the banks every time. Check out our online currency converter to see how much you save when transferring with us as opposed to with your bank.