It is all change for cryptocurrency tax reporting, but help is on hand
On the 29th of November His Majesty’s Revenue and Customs, HMRC, launched a new campaign to pursue unpaid tax from crypto investors.
The campaign seeks to encourage individuals to come forward and disclose any unpaid tax on crypto assets including exchange tokens, NFTs and utility tokens.
In part, the approach highlights their concern that many crypto assets owners are seemingly unaware of the responsibility and requirement to disclose and report taxable gains.
According to HMRC, some 37% of people said they knew ‘little’, while more than one in five were ‘not familiar at all’ with the capital gains tax requirements for holding crypto.
In addition, from the 2024-25 tax year there will be changes to reporting on the sale of cryptocurrency with the Self-Assessment Tax Return forms. The change will see the introduction of a standalone section for individuals and trusts which have disposed of crypto assets. Currently, the sale of cryptocurrencies is reported alongside a range of ‘other’ assets and reliefs.
To support clients, we have added a dedicated section on our website covering the tax treatment and reporting for cryptocurrency.
Help with cryptocurrency transactions for tax reporting!
We recognise that for some individuals, especially those with a high number and value of transactions, assessing whether they need to report or include cryptocurrency in their tax return can be a challenge, let alone actually compiling an acceptable crypto tax report for the eyes of HMRC. As such, for those without access to any cryptocurrency tax specialist software, we are delighted to have linked up with Recap.
Recap is completely free to get started. Simply connect your crypto exchange accounts like Coinbase, Kraken and Binance and discover if you need to file a return for free.
If you need to file, Recap has two price plans to generate tax reports. £99 including VAT for accounts with less than 5000 transactions and £179 including VAT for accounts that exceed 5000 transactions.
To receive a link for your free trial and/or to take advantage of an introductory offer please email cryptotax@streets.uk
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