Specialist Accountants For Cryptocurrency
Trading in cryptocurrency has become popular in recent years, especially among the younger generation. However, many people who are active in crypto might mistakenly assume that any profit they make from it is tax exempt.
On the contrary, cryptocurrency has drawn more and more attention from HMRC — and this tax collection body is known to heavily penalise businesses and individuals not compliant with UK tax legislation when it comes to profiting from cryptocurrency.
Whether you buy and sell cryptocurrency, engage in crypto mining, exchange investments for fiat currency or undertake any other form or cryptocurrency trading or investing, a specialist accountant for cryptocurrency can help you to prevent it from hitting you hard in the pocket.
What Is Cryptocurrency?
The term ‘cryptocurrency’ is used for any digital or virtual currency where transactions are secured with cryptography. As a result, cryptocurrencies are almost impossible to counterfeit, despite them using a decentralised system for recording transactions.
There are various cryptocurrencies currently in existence — including Bitcoin, Ethereum and Litecoin. Cryptocurrencies are exchanged on a peer-to-peer basis rather than through a bank — and each crypto transaction is recorded on a public ledger known as blockchain.
Fortunately, blockchain would ease your efforts to keep track of your crypto activity and so ensure that you are paying the right amount of tax. Through hiring a specialist accountant for cryptocurrency, you can make this data-gathering responsibility easier still.
How A Specialist Accountant Can Help Crypto Traders
It can be tricky to calculate how much profit you have made from cryptocurrencies, one reason being that these are often traded on exchanges not using pound sterling. However, an accountant with specialist expertise in crypto can skilfully calculate on your behalf.
This accounting professional can also help you to maintain accurate records of your crypto activity — including what type and number of crypto tokens you hold and how many of them you have disposed of, as well as the pooled costs before and after you disposed of these tokens.
You can receive expert support with calculating your taxable crypto gains and losses, making sure you have correctly valued your cryptocurrency disposals and filing tax returns as and when required by HMRC. Crypto tax legislation is complicated, but we can help you to fully comprehend it.
We can, for example, help you to appropriately manage inheritance tax, which you would be liable to pay on crypto assets. As disposing of an NFT would necessitate you paying Capital Gains Tax (CGT), we can also ensure that you make this payment on time.
How To Source An Especially Crypto-Friendly Accountant
It’s not unheard of for some accountants to lack in-depth knowledge of cryptocurrencies’ tax implications, given that cryptocurrency trading was, until recently, a nascent field. Therefore, it is crucial that you find an accountant who has the right credentials.
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Cryptocurrency Accountancy Services
AccountantFor provides a comprehensive range of accountancy and tax services for cryptocurrency investors and traders through our exclusive network of vetted accountancy talent within the United Kingdom.
– Statutory accounts
– Management accounts
– Financial planning
– Business plan
– Growth modelling
– Tax investigation service
– Capital gains tax
– Tax advice and consultancy
– Company formation
– Registered office address
– Payroll services
– Corporation tax