Over 2 million individuals in the UK own a cryptoasset but many do not realise the tax implication of their activities online.
If you are investing, mining or actively trading cryptoassets then it is likely that you are generating taxable income or gains from your actions.
It is important that you fully understand the implications of your investments and trades as you could be creating considerable tax liabilities from your actions, which must be reported accurately to HM Revenue & Customs (HMRC).
Taxing cryptoassets
How you are taxed and the size of your potential tax bill is likely to depend on how you derive an income from cryptoassets, such as NFTs and cryptocurrencies.
If you invest as an ‘amateur’, you are most likely to be taxed on the gains from the sale of any investments that you make each year.
If you are a miner or trader you may have to pay income tax instead, depending on your activities in a given tax year.
If you are involved with the cryptoasset markets, you must not only report your income or gains correctly via self-assessment and also pay the right amount of tax.
We can help you calculate how much you owe and offer advice on allowances and reliefs that could help you to reduce the amount of tax you pay.
Remaining compliant
HMRC has taken a growing interest in the tax affairs of cryptoasset investors, miners and traders in recent years and is taking active steps to ensure they pay the correct amount of tax.
We can help you to complete your tax return correctly, remain compliant with the changing tax rules surrounding cryptoassets and provide you with a deeper understanding of how your activities online affect your tax position.
Here to help
Arrange a quick chat with our tax team today to find out how they can help you with the calculation and reporting of taxation from income and gains on your cryptoassets.
