HMRC Exchange Rates October 2026

Worked example: an invoice for USD 10,000 at the October 2026 rate of 1.3456 converts to £7,431.63 (10,000 ÷ 1.3456). Because the rates are units per £1, you divide rather than multiply.

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Need an earlier month? The rate archive holds every published month back to January 2021 — a VAT correction or a late invoice converts at the rate that applied then, not today's.

Need the raw file? Download the official CSV for this month directly from trade-tariff.service.gov.uk.

When do you use HMRC exchange rates?

HMRC's monthly rates (also called "period rates of exchange") are the standard rates for converting foreign currency amounts into sterling in official filings:

• VAT returns — converting invoices issued or received in a foreign currency.
• Customs declarations — converting the value of imported goods for duty calculation.
• Corporation tax and income tax — where transactions must be expressed in GBP; businesses may also use daily or annual average rates consistently.
• Bookkeeping — many accountants apply the HMRC monthly rate for foreign-currency purchase invoices as a consistent, defensible convention.

The key rule is consistency: pick a recognised rate source and conversion method and apply it consistently. HMRC's own published rate is the least contestable choice for official filings.

Which exchange rate for which tax?

The rules differ by tax, which is the single most common source of confusion:

• VAT — VAT Notice 700 permits HMRC's published period rate, the European Central Bank rate, or a rate agreed in advance with HMRC. You must apply your chosen method consistently.
• Customs duty — the period rate published for the month in which the declaration is accepted is used to value imported goods.
• Corporation tax and Self Assessment — amounts must be expressed in sterling; HMRC accepts the monthly period rate, a daily spot rate, or an annual average rate, again applied consistently.

If a transaction is genuinely material, the spot rate on the transaction date is the most defensible choice. For routine purchase invoices, the monthly period rate on this page is the conventional and simplest approach. HMRC also publishes annual average rates for the calendar and tax year, which some businesses use for foreign income.

Frequently asked questions

How often do HMRC exchange rates change?

HMRC exchange rates change once per calendar month. HMRC publishes the next month's rates on the penultimate Thursday of the current month. In exceptional circumstances, where a currency moves by more than 5% within the month, HMRC can issue a corrected rate mid-month.

Which exchange rate should I use for my VAT return?

For VAT, HMRC's published monthly period rate is an accepted method. VAT Notice 700 also permits the European Central Bank rate or a rate agreed in advance with HMRC. Whichever method you choose, you must apply it consistently and cannot switch between methods to gain an advantage.

Is the HMRC exchange rate the same as the mid-market rate?

No. The HMRC rate is a fixed administrative rate set once per calendar month and does not move with the market. The mid-market rate is the live interbank midpoint and changes continuously. Use the HMRC rate for tax filings, and the mid-market rate as the benchmark when assessing what a bank or payment provider actually charges you — our FX calculator shows that gap, and the payment cost calculator covers the all-in cost of a transfer.

Do I multiply or divide by the HMRC exchange rate?

HMRC rates are expressed as units of foreign currency per £1, so you divide the foreign currency amount by the rate to get the sterling value. Multiplying is the most frequent error and overstates or understates the sterling figure substantially.

Where do these rates come from?

Directly from HMRC's own monthly CSV files on the UK Online Trade Tariff service, refreshed automatically. They are published under the Open Government Licence v3.0. The HMRC exchange rate service moved from its old gov.uk location to the Online Trade Tariff, which is why older bookmarks often break.

Related tools and guides

Paying a foreign invoice? Check the recipient's account details with our IBAN checker before you send. For the payment itself, see our guides to SEPA payments and SWIFT transfers. Accountants handling foreign-currency clients may also want our notes for accounting firms, and businesses holding balances in several currencies can compare multi-currency accounts.

Looking this up once a month is a sign the currency itself needs handling rather than converting. The working routine — when to hold, when to convert, how to report it — is in our guide to managing multiple currencies. For the account side of that decision, see the multi-currency account guide. Online sellers meet this every month, because marketplace payouts arrive in the buyer's currency and the VAT return is in sterling; that scenario is worked through in our e-commerce case study.

Compiled by the financeb2b editorial team from HMRC source data · Data month October 2026 · Page data refreshed 22 October 2026 · Editorial policy