Expert Cryptocurrency Tax Advisors
With the ongoing rise in cryptocurrency investments and activities, the requirement for knowledgeable and experienced cryptocurrency accountants has rocketed. At Chart Accountancy we are pleased to provide reliable and honest cryptocurrency advice in terms of accounting and tax obligations.
HMRC have recently issued detailed tax guidance on crypto assets such as Bitcoin and Ethereum, which explains everything a trader will need to know. However, adapting this to your own personal circumstances can be complex.
Our team of qualified accountants work together with our clients to ensure their cryptocurrency activities meet the changing requirements of HMRC. We have a vast knowledge of HMRC’s newly published guidelines, making our team one of the UK’s leading cryptocurrency accounting firms.
Accounting for Cryptocurrency
Accounting for cryptocurrency activities and investments, such as Bitcoin and Ethereum, requires a trained and experienced team. Failing to meet the legislation surrounding any financial activity can result in large fines and even prevention from further cryptocurrency involvement.
An agreement has recently been reached with Coinbase in which any users with over £5,000 in crypto assets must have their information disclosed to HMRC. This change means that HMRC are able to monitor activities on the investment platform and therefore ensure that all traders and investors are declaring their assets properly.
We are often approached by cryptocurrency clients who are unsure whether they are required to pay tax on their investments and activities due to the complexities of crypto assets. Our advice will depend on a range of factors such as how the assets are owned, existing financial investments and much more.
However, there are two common ways to pay tax on cryptocurrency, either via capital gains tax or income tax and national insurance contributions.
Cryptocurrency Capital Gains Tax
If you currently have cryptocurrency investments as an individual, these will fall under the capital gains tax legislation. In the UK currently the capital gains tax threshold sits at £12,300 for individuals, anything above this will be taxed at your existing income tax rate.
There are also allowances such as gifting crypto assets to spouses, however our team are here to advise you on the best steps to take to maximise your investments where possible within the legislation.
Cryptocurrency as Earnings and Wages
Crypto assets can also be taken as wages and earnings from a company, if you trade Cryptocurrency as a busines activity. In this case income tax and national insurance contributions come into effect. Any assets taken from your cryptocurrency account will form your standard allowances for taxable income.
Cryptocurrency Trader Tax Accountant
Cryptocurrency markets can be extremely complex, therefore having a qualified accountant to advise you on meeting legislation and guidelines around both investments and cryptocurrency activities is essential.
At Chart Accountancy we have worked with a variety of different businesses and individuals who deal and trade in cryptocurrency such as Bitcoin, therefore we have the skillset and knowledge to guide you through the complex tax legislations surrounding the investments.
Our cryptocurrency accounting services provide cost-effective and reliable solutions for investors throughout the UK. Following the publication of comprehensive guidance on cryptocurrency by HMRC, our team understand the complexities, so you don’t have to.
We handle all aspects of accounting for cryptocurrency and so, you can feel confident when working with us. To enquire about our accounting and tax services, simply call our office on 0333 772 7753 or email [email protected] and we will be in touch as soon as possible.