Tax Dealines and Currency Exchange


I never make a New Year’s resolution, the reason being that in the past any I have made have been a result of over indulgence in one form or another; food, spending or sheer laziness.  As for any resolve to change my ways during yuletide it’s a joke.  The festive season is a time for relaxation and stress free family get togetherness.  Consequently by the time the 6th of January arrives I have already broken my resolution.


So now I don’t bother and feel much better for it.  A rather sad habit I do have though is to make sure that we have a calendar to put out somewhere so that it can be seen every day.  The reason …… make sure I don’t miss important dates.  Not just birthdays and dates when family and friends are due to arrive but also the dates when various tax and information returns are due; both here in Spain and in the UK.


Unfortunately January is a busy month when it comes to taxes.  Here in Spain the 4th trimester returns for 2006 are due at the Hacienda.  That means that the Modelo 300 and Modelo 130.  Check with your accountant that they have everything they need to do the returns.  In January there are also other returns to be completed; the most common being the Modelo 390 which is an annual consolidation of the sales, costs and taxes from your business. The form itself can look a little daunting however your accountant should have been collecting the information during the year ready to be added to the 4th quarter IVA information.


Remember this is a very busy time for accountants so do not leave things until the last minute.  You may think that you do not have very much in the way of accounts but if you are the last one then your accounts will be left until the last and may not meet the deadline.  The Hacienda normally allows extra time because of the additional information required at the end of the year.  However it is rarely sufficient and January is a fraught month for Asesorias.


In the UK the end of January is the final cut off for submitting your personal tax return for the financial year 2005 – 2006. If the return has not arrived by the 31 January you will receive an automatic £100 fine, thereafter you will also incur interest charges on any tax revenue due and not paid by the 31st January.  This is also a busy time for UK accountants so make sure you have sent them every thing they need.  As with the Spanish system it is your responsibility to ensure that your tax return has been delivered to the Department of Revenue and Customs and not that of your accountants.


Currency Exchange


That’s enough about the dreaded taxman, last months article on foreign currency transfers spawned a number of queries. The most frequent query was about the actual process and how safe was it?  Transferring a large sum of money through one of the main foreign currency agencies is safe. Normal businesses that purchase goods from other European countries deal with theses agencies on a regular basis.  I have used them in the past both as a private individual and when in business to pay for goods.


You will have to set up an account but this is no more than providing your name and address and any contact information. You should also keep an eye on the pound/euro exchange rate so that you set the wheels in motion for the transfer on a day when you will get more euros for every pound.  It can sound complicated and daunting. Look at it this way if you thought you could save 200 or 300 euros on car insurance just by making a call and filling out a form then I am sure you would do so.  On just one transaction using a foreign exchange company you could save up to £2000 (approx 3000 euros).  This has to be worth the effort.


In the first instant you should speak to one or two of the agencies and go through the process. Get a feel for which one you are most comfortable with, and then set up your account.  If it still sounds complicated; do not worry the agencies will go through each part of the process in plain English and if you are still confused I have a step by step fact sheet available.


Just because you have always used the bank does not mean that they are the best.  And just because you have never used a foreign currency agency before does not mean that they are not to be trusted.  Take control of your money and make it work for you not for the Bank.


If you have any queries about this article or any Money Matters queries contact Ann on 661003324, email This email address is being protected from spambots. You need JavaScript enabled to view it..  If you have personal questions for Ann you may contact her via Big Attitude PR on 661757433, email This email address is being protected from spambots. You need JavaScript enabled to view it..



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