UHY Ross Brooke Chartered Accountants

Do you need to complete a tax return for your crypto income and gains?

crypto tax advice

In general terms there are a number of reasons why you may be required to complete a self-assessment return including that you:

  • let out UK or overseas property
  • have recently sold an asset and may be liable for CGT (Capital Gains Tax)
  • are a company director
  • are self employed and not a member of a PAYE scheme
  • have multiple sources of income
  • are a higher rate tax payer or have a high net worth.

Also, you or your partner may receive Child Benefit but your income is over £50,000 meaning that you may have to pay a High Income Benefit Charge.

In addition to the above, your crypto transactions may bring you into the self-assessment net eg

  • you have trading income eg mining profits in excess of £1,000
  • you have received other income from lending or staking
  • the value of your crypto disposals (and other capital disposals) exceeds £49,200
  • the net value of your crypto gains and losses (taken together with any other capital gains or losses) exceeds £12,300

There is a very useful tool of HMRC website to help you determine whether you need to complete a tax return

Don’t forget that you may wish to voluntarily submit a tax return to claim capital (including crypto) losses to offset against future capital gains. You have 4 years in which to submit such a claim and once claimed the losses can be carried forward indefinitely and set against future capital gains.

It maybe that none of the above apply and HMRC have simply asked you to complete a return. If that’s the case, don’t ignore it. You could end up in a penalty position.

If you are still uncertain whether you are required to submit a tax return or require any assistance with the completion of your tax return, please get in touch. Our expert staff will ensure that your tax returns are filed accurately and on time, whilst checking that all allowances to which you are entitled to have been claimed, so that you do not pay any more tax than you are legally obliged to.

Do HMRC know about my cryptoassets?

HMRC have been using its information-gathering powers to retrieve lists of investors from various exchanges over the past few years. HMRC have sent ‘nudge’ letters to investors to remind them they may need to pay tax. if you have received a letter please feel free to contact one of our experts to discuss.

How we can help

We have an experienced team of crypto tax advisors familiar with the unique challenges relating to crypto trading and currency who can provide support with:

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