Cryptocurrency Tax advice and Cryptoasset Tax Advice

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A ‘day-trader’ is probably the most obvious example – someone who actively buys and sells crypto assets to create short-term profit. Any rewards or fees received in exchange for mining activity will also be added to your taxable income. Knowing the tax-free maximums that are available to you is a good way to determine your crypto disposal strategy and hence, actively optimise your taxable position. If you are claiming means-tested benefits, such as tax credits or universal credit, you will need to consider how your cryptoasset activity is treated for these benefits separately. The treatment may differ from the treatment for tax purposes. In case of any doubt, we recommend you seek professional advice.

Calculate the Fair Market Value (FMV) of your crypto income

There are online platforms and software which offer to do these calculations for you. However, if you use one of these platforms or software to generate a tax report then you remain responsible for taking reasonable care over your tax affairs. HMRC’s guidance in this area is evolving and there is no guarantee that the report generated will be in line with HMRC’s latest position. If you are disposing of cryptoassets then, other than in exceptional circumstances, HMRC would normally consider that you are making capital disposals rather than earning income from a trade. You can buy cryptoassets using ‘normal’ currency and then later sell them (or otherwise ‘dispose of’ them, such as using them to buy things) at a gain or profit.

We have a powerful online system and fully-trained accountants to relieve you of stressing about those numbers. Yes, but unfortunately the UK isn’t one of them – though it does offer decent tax-free allowances for Income Tax and Capital Gains Tax. This is still seen how to avoid crypto taxes uk as income in the eyes of HMRC, even though your employer is using a form of non-cash payment. Save money, and get your accounts done fast for as little as £24.50 per month. Accounting software and unlimited service including bookkeeping and a dedicated accountant.

Is the Government planning to overhaul the CGT rules?

Will crypto invested in a pension fund bring welcome tax relief? In the UK, it’s a possibility – although it’s not a straightforward process and something to check with your financial advisor. GOV.UK has guidance on the tax consequences of selling or receiving cryptoassets.

how to not pay tax on cryptocurrency uk

To work out the gain, Felix needs to convert each US dollar amount into pounds sterling on the relevant date. You can use a website like to find out the rates on a given day. HMRC do not consider cryptoassets to be currency or money, or that buying or selling cryptoassets is gambling. This means that, in HMRC’s view, profits or gains from buying and selling cryptoassets are taxable. WIS Accountants have been looking after my company’s accounts for the last 4 years and i have always been pleased with their excellent and prompt service. Their team is highly professional and knowledgeable and hard working.

Hard and Soft Forks and Crypto Tax UK Treatment

You will have to report tax on your Self Assessment tax return or your company tax return. At WIS Accountancy, we are specialist cryptocurrency accountants, please contact us today and we can help you. Where an individual is trading, they may be able to reduce Income Tax liability through offsetting losses from their trade against future profits or other income.

how to not pay tax on cryptocurrency uk

I have been a client of WIS for a little over 18 months since my previous accountant closed their practice and I transferred to WIS after having a great meeting in person with Wijay. Since that time these guys have been brilliant, patient and ever so helpful in equal measures. I’m from the corporate world but I’m not a corporate guy. I started my career in business, working in accounting for Morgan Stanley and HSBC.

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