UK Cryptocurrency Accounting and Tax Services
Expert UK Cryptocurrency Accounting and Tax Services
Are you struggling with the complexities of cryptocurrency taxes and accounting? Our team of experienced advisors and accountants in Peterborough specialise in navigating the unique challenges of crypto trading and currency. We can assist with calculating taxable profit, HMRC filing obligations, disclosures, tax advisory, valuations for disposals, and even HMRC disputes and investigations.
How can we help:
We have an experienced team of crypto tax advisors familiar with the unique challenges relating to crypto trading and currency who can provide support with:
- Your annual HMRC filing obligations
- Capital Gains Tax
- VAT
- Undeclared crypto gains and disclosures
- Tax advisory to ensure that your cryptoassets are properly structured
- Ensuring correct valuations are used for your cryptoasset disposals
- HMRC tax disputes and investigations
- Business start-ups in the cryptosphere
Contact us today to schedule a consultation and take the first step towards managing your cryptocurrency taxes and accounting with confidence.
Cryptocurrency Tax & Accounting FAQ
What is Cryptocurrency?
Cryptocurrency is a form of digital or virtual currency that utilises cryptography for security. Unlike traditional currencies issued by governments (like pounds, euros, or dollars), cryptocurrencies operate on a technology called blockchain, which is a decentralised ledger of all transactions across a network of computers. This decentralisation makes cryptocurrencies theoretically immune to government interference or manipulation.
Popular Cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Litecoin (LTC).
If I am paid in crypto under PAYE, what is my tax position?
The employer must report pay to HMRC and make necessary deductions. Salaries cannot be reported to HMRC in crypto, so all calculations must be converted to £ sterling. Tax and national insurance are calculated on the £ sterling value, and the employee receives the net amount in crypto.
What is taxable crypto income?
If you're paid in cryptocurrency, or receive staking rewards, mining tokens, or airdrops, these are considered income and taxed at your normal rate or subject to corporation tax in the case of company. HMRC has issued guidance on these transactions, but the crypto landscape is constantly evolving.
Other potential income sources that may be taxed include:
- Earning interest from lending your crypto, yield farming, or earning dividends
- Referral rewards
- Activities that reward you with crypto, such as watch to earn, learn to earn, play to earn, or shop to earn.
It's important to stay informed about any updates to regulations as the crypto environment changes.
Can I gift my crypto assets without incurring tax?
You can only gift your crypto assets tax-free to your spouse or civil partner. If you gift them to someone else, you might be subject to Capital Gains Tax (CGT), depending on the asset's value. Furthermore, there could be Inheritance Tax (IHT) implications if you pass away within seven years of making the gift.
Who can assist me with my crypto accounts?
Odiri Tax Consultants & Accountants have a specialist crypto tax and accounting team.
Can I use crypto in my business?
Yes, you can. Some businesses use cryptocurrencies to pay their staff and conduct transactions for their goods and services. However, you still need to pay your taxes!
What is Mining Cryptoassets
Mining involves securing transactions and documenting the exchange of tokens and related activities. This is essential as these tokens lack a central authority. Those who undertake this task are generally compensated with extra tokens.
