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We are the crypto accountants you need for professional advice, understanding of UK tax law, more specifically cryptocurrency tax, effective tax planning and all other accountancy services you would expect. We have more than 10 years of experience, meaning you can trust our chartered certified accountants to do their best for you.
As popular as cryptocurrency investments have become over the last few years, they also carry with them incredibly tricky crypto tax regulations that investors and businesses do not understand.
HMRC are increasing their efforts to check cryptocurrency revenue, which means if you are involved in cryptocurrency investment, you need the help of professional crypto accountants like those found here at Tax Bite.
Tax Bite is an accounting service provider with more than 10 years’ worth of experience trading. Rather than just offering general accountancy, we have trained specialists that can offer crucial cryptocurrency accounting support including business advice and tax planning.
As well as being qualified and friendly, our team are also passionate about all things crypto and blockchain.
The accountancy services for cryptocurrency we can provide include:
As professional chartered accountants here at TaxBite we offer various services for Crypto traders such as:
As a crypto or NFT trader we understand that working day in day out can and reading about cryptos and NFT’s can be very time consuming especially if there’s been dips in the market.
Our team of accountants are here to make your life easier by using the latest accounting software such as:
If you want anymore information regarding the best accounting software to use as a crypto or NFT trader then get in touch with our team we will be to advise you further.
The biggest issue with crypto is that there is no specific tax legislation for it in the UK. Any profits generated from crypto in the UK are taxed in a variety of ways depending on taxpayer circumstances and actions. When you are looking to get, sell or buy cryptocurrencies, inheritance tax, income tax and capital gains tax all may be needed.
Buying and selling cryptocurrency, depending on the value and frequency involved, are considered investment activities. Gains made from this type of investment are normally subjected to capital gains tax.
Many cryptocurrency investors make the mistake of thinking that it is only when you buy or sell a crypto asset for money that it is liable to capital gains tax. However, a gain in terms of tax purposes can also be when crypto-assets are exchanged for different forms of cryptocurrency. For example, from Tezos to Cardano or Ethereum to Bitcoin or when crypto assets have been gifted to someone or if they are used in the payment of services and goods.
The calculations involved can be complex, mainly when other assets are being disposed of in the same tax year. The team here at Tax Bite can provide assistance and expertise to calculate your capital gains, prepare your tax returns, and specialist tax planning to sure your crypto investments are tax-efficient.
National insurance and income tax are liable with assets when criteria are met and this includes things like airdrops, mining, crypto asset trading, and employer remuneration.
Airdrops are not generally subject to income tax if the crypto asset has been dropped into your electronic wallet for personal reasons. When this has been done in exchange for services, however, they can come under income tax rules.
When you receive crypto assets from mining, it depends on a variety of different things as to whether they are taxable and liable to income tax such as how active you are at mining, the size of reward you are given and from whom the assets are being received from.
This is incredibly complicated, and you should seek professional advice from qualified and certified accountants who have experience with cryptocurrency.
Additionally, when crypto assets are kept and disposed of, they are liable to capital gains tax, if the gain from them is higher than the yearly allowance. Tax Bite can help you understand what you need to pay and why.
HMRC may consider your activities involving crypto-assets a trade, instead of an investment, which means you will be taxed if you run a business and you will be expected to pay income tax. As is the case with many areas of cryptocurrency, several factors influence the decision of whether you need to pay income tax or not. It is best to seek professional advice from cryptocurrency accountants like the team here at Tax Bite.
When employees receive earnings in the form of crypto assets from employers, national insurance and income are due. In addition, when crypto-assets are later disposed of, they may also be liable to capital gains tax.
Crypto asset disposal with tax purposes occurs in the following circumstances:
You need to first review whether past crypto trading is reported correctly to HMRC or if there is an undeclared crypto gain. If you find you have, you can correct these errors through the disclosure facility offered by HMRC.
As this is a complicated process, you will need to conduct a detailed review of historic transactions to ensure underpaid tax is paid, and you need to figure out how the error occurred in the first place. This will have a greater impact on the tax years that need to be covered and if you are due any penalties.
HMRC may ask for several types of information if you have cryptocurrency. The most common that are requested and that you should therefore keep a record of include:
Although cryptocurrency trading and mining are generally considered anonymous, HMRC has been using its powers for information gathering to create lists of investors from a variety of exchanges over the last couple of years.
Nudge letters have been sent by HMRC to potential investors. If you have received one of these letters and are unsure what you should do, please get in contact with Tax Bite who will be able to assist you and offer advice about the action you need to take.
Regarding crypto and inheritance tax, crypto-assets (NFTs, tokens, currencies) are placed in the same category as property. This means you will be liable to pay some inheritance tax. To find out how much you need to pay and if you can claim any back or reduce your bill in any way, speak to one of our cryptocurrency accountants here at Tax Bite.
It has become common practice in many industries for companies to pay their employees in cryptocurrency.
Even though you are not getting paid in conventional currency, the same rules apply to all fiat salaries, you need to pay some national insurance and income tax on those earnings. In addition to the tax, you need to pay on receiving crypto, when you dispose of it, either by converting it to fiat or trading it to earn a profit, you may need to pay capital gains tax.
Perhaps you have yet to be paid in crypto and are considering this as an option. If you are looking to find out the pros and cons and whether you should take that as a choice, speak to our cryptocurrency accountant team today.
“I recently got involved in cryptocurrency investment and realised early on that the tax obligations surrounding crypto businesses are complicated, to say the least. A trusted associate had suggested Tax Bite to me and suggested that their tax advisers were well versed in all kinds of modern investment activity, especially those related to blockchain technology. The team of tax advisors I spoke with were able to help me reach my crypto gains goals and when it was time to file my tax return, and my tax liability, as well as helping me deal with income tax and national insurance. I would not have been able to get a handle on my business without the help of their expert team.”
“Many accountancy firms and businesses are operating right now who claim to have the experience and expertise necessary to help crypto businesses with their cryptocurrency tax obligations. While I cannot say whether they are any good or not, what I can say is that the tax treatment and resolution to many of my ongoing crypto tax issues that I received from Tax Bite helped get my crypto trading business back on track. My annual exemption improved tenfold and the pound sterling value of my cryptocurrency increased. They treat clients with the utmost respect and provide support for all digital assets that pay for themselves in the end.”
If you are interested in cryptocurrency or have already been involved in crypto activities and need some help understanding the tax obligations, we hope you will consider speaking to a tax advisor from Tax Bite.
A crypto accountant can help you understand the ins and outs of crypto trading and other cryptocurrency activities. Despite it becoming increasingly popular, people still find crypto taxes,
The crypto accountant you are assigned will help you with all tax affairs while getting a hold on UK tax implications. They will be able to determine when you need to pay tax and when you don’t need to pay tax and help you save money on cryptocurrency taxes.
Our team at TaxBite help various sectors in accounting, such as: