Cryptoassets RPG Chartered Accountants

They advised the format which would make it the cheapest for me, but also gave me the option of giving them the raw files to sort it all out, which was worth the extra considering the mess I had to sort. Was a relief just to be able to send them everything i had and have an expert making sure it was done correctly. I found them to be professional throughout, quick to respond, how to not pay tax on cryptocurrency uk even out of office hours, and generally made sure I understood everything despite being completely clueless when it came to anything tax related. They even sent off my tax return on my behalf, so all I have to do now is pay the bill. If you have invested in any type of cryptocurrency/cryptoasset and require an experienced tax adviser, Rawlinson Pryde can help you.

There has been a general lack of awareness that gains made from crypto transactions are subject to UK tax rules. HMRC are looking to redress this and published their cryptoassets manual in March 2021. This clarifies the tax implications that can arise from transactions involving cryptoassets and explains HMRC’s interpretation of the law as it relates to cryptoassets.

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Mostly, people hold cryptoassets as personal investments, typically for capital appreciation or to make specific purchases. Cryptocurrency tax is an area of growing concern for investors, traders and businesses as cryptocurrency and Cryptoassets become more popular. If HMRC considers your activities to be a trade, rather than investing, then you will be taxed as if you are running a business and income tax will be due.

In the growing field of blockchain technology, you need a business advisor who speaks your language. From TGEs to SAFTs, DApps to airdrops, minting to mining, ERC-721 to ERC-1155, our team understand your business, and are on hand to work with you every step of the way. As a business you need to have confidence that your accountant understands the sector in which you operate and fully understands your needs and can help spot opportunities. HMRC have been very clear in reminding those in crypto of their tax obligations. Pleading lack of awareness of UK crypto tax regulations won’t cut it – and the potential penalties are significant.

What our clients say

Because HM Revenue’s tax treatment of cryptocurrency appears to be evolving, it’s now more important than ever to appoint specialist tax advisers for cryptocurrency. In the UK, HMRC guidance means you are expected to pay tax on your profits from crypto activity. The type of tax you pay, will depend on how you trade your crypto, and the type of gains, profits or rewards received (see our series of articles ‘The Chain of Crypto Taxes’ for specific guidance). So it is likely that any and all historical gains from crypto activities will be demanded eventually. So if you believe you have undeclared profits or income from your crypto portfolio it’s time to dig up the data and come forward – proactivity is always preferential when it comes to HMRC and any tax owed.

It is also important to understand that there are highly complex matching rules for purchases and sales, and gains and losses of cryptocurrencies. A poorly structured series of purchases and sales can mean you pay more in tax than you have gained in overall value so it is worth giving this due consideration before concluding any transactions. The truth is that if you are trading assets, HMRC may see your activities as a business, and therefor Income Tax and NI will be applicable. HMRC now has access to crypto data from various cryptoasset exchanges worldwide, using its rights under International Treaties rules. Aa such, at the start of 2022 HMRC sent out ‘Nudge Letters’ to Taxpayers they believe may have undeclared gains from crypto assets.

Looking for professional advice?

As I’ve mentioned, HMRC is taking a much closer look at people’s crypto affairs in the UK and has secured agreements on reporting from many of the big cryptocurrency exchanges, such as Coinbase. So our knowledge https://xcritical.com/ of the sector is unrivaled, meaning you’re in the right place for all of your Crypto accounting needs. We’re a husband and wife team with over 50 years experience of working with small businesses.

• Our crypto accountants are themselves crypto natives and can guide you on your DeFi journey.
• By submitting this form, you consent to our use and storage of this data for the aforementioned purposes.
• This section of the guide is for businesses, including companies, sole traders and partners.
• Whether you’re a sole trader, an SME, a non-UK business or a large corporate, we can provide you with full service accounting support.
• I would like to thank RPG for your unbelievable help, assistance and friendship for over 40 years.
• Cryptocurrency traders will usually partake in the markets on a more frequent basis .

Although, calculating any profit from cryptoassets can be complex as many cryptoassets are traded on exchanges that do not use pound sterling and it is also common for one cryptoasset to be exchanged for another. This can be further complicated as a result of the volatility of the crypto market and valuing your cryptoassets on disposal. We were one of the first UK tax advisers for crypto and NFT clients to post online about thetax treatment of cryptocurrency and NFT’s. We therefore consider ourselves specialist tax advisers for crypto and NFT clients. When we originally published our articles online there was no specific tax legislation for cryptocurrency. However our original interpretation of the rules when previously there was little guidance appears to have been confirmed.

We were the first UK accountancy firm of our size to accept cryptocurrency (Bitcoin) as a fee payment.

We are a Limited Partnership firm of Bedford Accountants regulated by the Association of Chartered Certified Accountants . Where an employer is not able to deduct the full amount of Income Tax due, they must still account to HMRC for the balance. In these circumstances, the employee must reimburse their employer within 90 days of the end of the tax year.

Whether you’re a sole trader, an SME, a non-UK business or a large corporate, we can provide you with full service accounting support. Risk, because it’s possible to intercept the transfer of cryptocurrencies or the funds invested in them . Whether by malicious intent or user error, Bitcoin or other cryptocurrencies can vanish into thin air.

What is cryptocurrency?

You need to pay tax on that profit when you have made a profit, so make sure that this goes on your Self-Assessment tax return. What counts most to HMRC are the gains you make on the sale of your assets. If you do not trade them, you do not pay tax on them, and hence your initial investment is tax-free. If no disposal occurs, no tax is required, and it’s worth noting that HMRC obtains information from crypto exchanges. There is no way to avoid paying taxes when they are due, so be informed of your responsibilities before trading and investing in crypto assets. If you decide to trade one form of crypto asset for another, this is considered an asset exchange.