Crypto Tax

Crypto Tax Accountants

Cryptocurrency is a digital alternative or virtual currency that is stored in digital wallets and doesn’t need a bank to verify transactions. Instead, advanced encryption is used to ensure security. Most people who trade in cryptocurrencies do so for profit, and any profit made is subject to tax in the UK. Income Tax must be paid on any income that cryptocurrency brings in, while profit from the sale of it is subject to Capital Gains Tax.

At JR Accounts, our Ilford accountants provide cryptocurrency taxation services that strictly adhere to government regulations, while ensuring that our clients maximise the value of their crypto assets.

Cryptocurrency no longer constitutes a fringe form of monetary circulation; since 2014, HMRC has been keeping serious tabs on it. And contrary to what some may say or believe, cryptocurrency is taxable, albeit above a certain level.

The time has long passed when HMRC may or may not have cut businesses slack for their lack of crypto taxation knowledge. Today, wilful neglect of crypto tax liabilities can incur substantial financial penalties.

How Does Crypto Tax Work?

If you’re unsure about how crypto taxation works – don’t worry, you’re not alone. Relatively speaking, cryptocurrency is still in its infancy. Accordingly, the subject of crypto taxation is somewhat shrouded in mystery.

Even in regular (i.e. non-digital) financial circles, taxation can be a difficult thing to get your head around. This is no less true of crypto taxation, which is why it’s essential that businesses are mindful of their tax responsibilities. Securing the services of a specialist crypto tax accountant is the best way to ensure that such obligations are met. More than ever, HMRC is up to speed with the workings of digital finance, particularly when it comes to monitoring crypto revenues.

Crypto Accounting with Our Ilford Accountants

It’s worth bearing in mind that an entrepreneur with sound business ideas isn’t expected to have a deep understanding of how accounting works. This is even more true of crypto accounting.

Our crypto tax accountants have a great deal of business accounting expertise and experience; we provide taxation services for a wide range of clients, with turnovers large and small. As a well-established firm of tax advisors and certified accountants, we’re perfectly placed to help businesses in Ilford and beyond. Our specialist crypto tax team understands everything there is to know about cryptocurrency, blockchain technology and much more besides. With our help, you’ll soon be navigating the crypto taxation landscape without a hitch.

Allow us to deal with the minutiae of crypto taxation and the ways in which it impacts your business. Of course, whenever you need specific advice or detailed explanations, we’ll be more than happy to provide them – but what we don’t want to do is burden you with unnecessary data. We certainly don’t want to subject you to complicated jargon unnecessarily.

Essentially, we’re here to remove all your day-to-day worries regarding crypto taxation, leaving you free to concentrate on what you do best: run a successful business.

How Our Crypto Tax Accountants in Ilford Can Help

Our crypto tax services are extensive, and there are several ways we can assist with the smooth operation of your business. For instance, we can:

  • Introduce structured crypto tax planning to your business
  • Apprise you of your yearly HMRC tax-filing obligations
  • Calculate your taxable gains and losses
  • Ensure that disposals of your crypto assets are accurately valued
  • Help you with undeclared cryptocurrency gains and disclosures
  • Advise and support you in the event of an HMRC investigation or tax dispute

To find out more about our crypto accounting services, speak to one of our qualified crypto tax consultants in Ilford today.

Crypto Taxation FAQs

Here at JR Accounts our Ilford accountants are ready to help with all your crypto tax needs. Not only are we a friendly, trustworthy and expert accounting firm, our specialist crypto taxation team has complete understanding of how centralised and decentralised finance works. We’ll work hard to minimise your tax burden while ensuring your business follows the law.

It’s not a legal requirement to have an accountant who handles your cryptocurrency affairs. However, unless you have a full grasp of the ins and outs of digital currency, you’ll find it a lot easier put your trust in the services of a professional crypto tax consultant.

Cryptocurrency gains are declared as part of your annual Self Assessment or Company Tax Return.

Yes, you will be liable to pay either Income Tax or Capital Gains Tax on any revenue you make from cryptocurrency. Speak to our accountants today to find out what your tax liabilities are.

You may still need to pay tax on your cryptocurrency even if you don’t sell it. If you exchange Bitcoin for Ethereum, for example, or use a cryptoasset to pay for goods or services, you may also be liable for Capital Gains Tax.

If you don’t exchange or sell your cryptoassets, they may still be liable for Income Tax, when certain criteria are met. It’s a complicated calculation, and one that should typically be left to a financial expert to ensure you don’t fall foul of HMRC regulations.

This will depend on which income tax band you fall into and the value of your cryptocurrency. Crypto tax ranges from 0% to 45%. For example, if you have cryptocurrency that‘s valued at no more than £12,570, you will be liable to a 0% tax rate. If the value is between £12,571 and £50,270, the tax rate will be 20%.

In the UK, cryptocurrency is subject to either Income Tax or Capital Gains Tax. If you earn an income from cryptocurrency, you’ll need to pay Income Tax (assuming the value exceeds £12,570). If you sell, exchange or spend cryptocurrency, you’ll be liable to Capital Gains Tax.

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