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Erica Stanford[REPLAY] Crypto Taxes In the UK-2021: The Why, How, and What of Cryptocurrency Taxation
Updated: Nov 23, 2021
Every crypto holder/user, no matter how knowledgeable he/she is, is no exception to tax. All the more reason for you to analyse the every move you have done in this complex system and the taxes you've incurred from those actions.
And because it's tax season, here's a number of things you need to know about cryptocurrency taxes and how you can stay on the right side of the law as presented by Accointing.com.
[00:02:21] Ian Taylor on the UK’s Stand on Crypto
How pro crypto is the UK?
What efforts exist from the government to support/sanction it?
3 Pillars
Economic Crime and Illicit Financing
Crypto Asset Promotions
Stable coins
[00:13:40] Joe David on Crypto Tax Regulations
What existing laws exist towards cryptocurrency and where and when do they apply?
Key Regulations
Governing Law |
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Income Tax |
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Capital Gains Tax |
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Valuations of Tokens |
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Inheritance Tax | Crypto assets are classified as property for tax purposes |
SDRT |
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[00:21:20] Joe David on When Is Crypto Taxed?
What type of crypto transactions are taxed and how should they be classified?
Crypto Tax Classification
Not Taxable | Case by Case | Taxable |
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[00:26:45] Joe David on The Best Practices in Crypto Bookkeeping
What are some of the best practices to deal with crypto in the long term and how can knowing these save you lots of money
Tips:
1. Keep a record
Keep a record of transactions where you can especially in DeFi. Tracking down the data can be a challenge
2. Engage a professional
Engaging with an accountant might sound ominous but the space is complex and requires expertise
3. Do your research
The space is complex but basic knowledge of taxes will help ensure you are trading profitably
4. Use a tracking software
Tracking software will allow you to use API’s from exchanges and wallets to import all your data
5. Keep a record of any losses
Keeping a record of losses is essential if you wish to offset these against any gains to keep a separate log of these
6. Keep track of expenses
The crypto space can incur lots of expenses. Keep track of these to ensure you can offset
[00:30:49] Joe David on Crypto Accountants
Who are these professionals and how can they help you file your crypto taxes and save your tax returns?
Look for someone who:
Knows the concepts
Has crypto experience
Has clients in multiple areas of crypto
Is passionate
Has a strong team
[00:34:22] Kyle Zhang on the Tools for Crypto Taxes
What tools are available out there and how can they help you file your taxes easily and accurately?
What the solution entails:
Country-specific tax output
Proof of ownership reports (AML)
Interconnectivity
User-friendly platform
Performance analytics
[00:41:02] Q&A
How are DeFi stacking returns taxed and what’s the best way of recording them on Accointing?
How do you calculate tax on any gain in assets sold?
If you receive income in Bitcoin, do you declare it when you receive the Bitcoin or when you convert it to FIAT at a later date?
How do you calculate CGT liabilities?
Will you owe tax on assets such as ERC20s and ERC721s if you don’t sell them this tax year?
Does burning/expanding in-game crypto assets count as a taxable event?
Are crypto rebates/cash backs treated as income from a crypto visa card?
Can you split CGT gains across other family members to utilise their £12,300 allowance?
How about scam airdrops which you never ask for and are impossible to sell due to the contract?
Would you be classified as a trader if a bot is trading for you?
What does one do if an exchange closed down and there is no way to recover trade history?
Will HMRC automatically ask for additional information after filling? Any grace period from HMRC in this transition?
How do you mark coins acquired through staking as coins that have already been taxed on rather than a new taxable event?
Meet Joe David
Joe David is the founder of MYNA, a cryptocurrency accountancy firm. A self-confessed technology geek.
Joe has been a key player in driving the use of technology in the accountancy industry over the last few years through his other practice, Nephos.
Contact MYNA and Joe
Meet Kyle Zhang
Kyle is the co-founder of Accointing, an accounting, tracking and tax optimization tool for Bitcoin and other cryptocurrencies.
Contact Accointing.com and Kyle
Meet Ian Taylor
Ian is a Finance, Policy and FinTech professional with capital markets, innovation and disruptive technologies expertise. Specialties: Market Structure | Trading | Derivatives | Policy & Regulation | Crypto | DeFi | Blockchain | Speaker | Interest Rates / Fixed Income | Governance | Modelling | Investing | Treasury.
He is also a Qualified accountant (ACCA).
Contact CryptoUK and Ian