How much of a faggot is HMRC going to be when I submit my tax return in August?
I regularly trade BTC/ETH and others daily. Multiply this for a year and this will be at least a couple of thousand trades. Am I going to have to work out capital gains and expenses (losses on assets relative to FIAT) on every trade or can I just declare the majority of this trading as taxable income (and be taxed higher).
I'd like ideally to be able to just show what my net deposit and withdrawal of her majestys cuck coin has been to my exchange, plus the total value of my crypto assets at the end of the tax year.
What's the easiest way of sorting this out and what will lead to the lowest tax bill
Not considering emigrating as a way out as i'm going to make at best 6 figures this year unless crypto mcap does a 20x or something like that.
britbong here. im gonna pay zero tax after i make 7 figures.
fuck the tax man and the paedo royal family
Ayden Brooks
UK fag here that declared crypto for the 2017/18 tax year.
I used the website cointracking.info. Just enter as much as you can in there... In the future, you should make sure the information is updated as you trade.
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You will want to be declaring it as Capital Gains tax. Very low tax rate compared to income tax (income tax also includes national insurance etc).
Also with income tax, if your turnover is over £85k you would have to register for VAT which is a massive hassle.
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I declared through a good accountant, might help but can't say for sure. Most the actual accounting happens through the cointracking website but I feel it is good to have an accountant managing the interactions with HMRC.
Joseph Rodriguez
>2017/18 tax year.
Also 18/19.
Nathaniel Davis
One other thing.
If you have other income from being employed or self employed it might help. Because that is differentiated as your income, and crypto is on the side as investments. So when you file your taxes you will have two submissions, one for income tax and the other for capital gains tax.
If you only have a submission for capital gains tax, perhaps that might raise some suspicions that it is actually your work income instead of investments.
Jacob Moore
Also another cool thing with capital gains tax, you get another £12k tax free allowance. So theoretically you can get £24k tax free if you are also getting income from work.
Asher Morgan
can you not say your occupation is a crypto trader, claim 12k free on capital gains, and then again on income
(assuming you have no job)
Logan Murphy
So splitting your crypto earnings into two parts? I think that would fall apart under any scrutiny by HMRC.. Technically you can do anything with taxes, write whatever you want.. The only question is what will happen once your taxes are scrutinized.
Julian Ortiz
Hmm, maybe if you were to have a long time portfolio and a short time portfolio? Cant say for sure. Best to get advice from an accountant.
Jacob Williams
When considering whether something is an investment or income. You have to defer to the badges of trade
If it falls within much of the badges of trade it is considered income instead of an investment.
Adam Nelson
Yea i'm making minimum wage in a part time job. I've made my annual salary in about 6 weeks with crypto. I'd quit but it has its benefits
Gonna save this thread before its archived. Good info.
Out of curiosity, how much did you make and what was your initial investment? A friend of mine walked away with 100x on a £3k investment just for buying neblio...
Bentley Smith
When's the deadline for declaring purchases? Do you have to declare when you buy or only when you cash out?
Experiences cashing out? Do you know if they actually care about the trades, or do they just take your word for it?
Hunter Bennett
Britbong here if i may ask how did your friend deal with taxes and how did he cash out?
Elijah Cooper
Lose a bunch of (paper) money then claim your gains against it.
Not a massive amount like 40k with holdings from 2013. Only put around £100 of actual money in during 2013.
>A friend of mine walked away with 100x on a £3k investment just for buying neblio...
Epic, I hope to pull something like this off next time around.
Samuel Collins
Lucky i cant be taxed om my crypto gains. As a status native american all income made on reservation is considered non taxable wealth. As my crypto gains are technically owned by a company (owned by me) that is incorporated on reservation. Im actually thinking of setting something like a swiss bank up for north americans. Since its a loophole that can only be solved by the tribal council and my family controls it on our reservation.
FUCK YOUR SCAM I PUT MY 30K SAVINGS FOR AT LEAST 2X
FUCK YOUR SCAM FUCK YOUR SCAM FUCK YOUR SCAM FUCK YOUR SCAM FUCK YOUR SCAM
Nolan Smith
Any cash to crypto transaction is irrelevant to taxes until you either sell the crypto for cash or trade it for another crypto.
Yes I have cashed out and traded crypto to crypto (which counts as cashing out each trade). I have declared this and paid my taxes.
In terms of if they care about trades, yes. What matters is that you have all the correct information information and therefore know the correct amount of tax owed. As long as you know the correct amount of tax owed you are fine.
Isaiah Reed
>Yes I have cashed out and traded crypto to crypto (which counts as cashing out each trade). I have declared this and paid my taxes. Can you give more info on how you did it? When do I need to declare my purchases?
>What matters is that you have all the correct information information and therefore know the correct amount of tax owed But how does it work? Do you tell them how much tax you owe and they take your word for it or do you need to send them spreadsheets of trades?
Thanks user
Cameron Phillips
he paid an accountant £5000. In terms of cashing out I just know that he held after the crash and 300k is what he had. He had £6million at the top but was holding out for £10 mil so he says.
fuck doge and that scamcoin. This is my dog, I decided to post it instead of trannys or men.My pepe collection is small.
Eli Reed
I inputted all of the information into cointracking.info (I paid for a membership). The information can be imported via either trade history files downloaded from exchanges or automatically updated from exchange API keys. Some data may need to be manually entered. As some of my data was from 2013 it was a bit choppy, so not perfect (just meant I paid more tax than I owed in the end as I had limited buy side information from early on).
You declare a purchase of crypto when the purchased crypto is either sold for cash or traded for another crypto (or disposed of in another way such as being given away as a gift).
Ahh I see. On the cointracking.info website that I use, you can automatically create a complete tax report by the click of a few buttons. This file is what I gave to my accountant.. Having said that the only thing my accountant was really interested in was the total capital gain made so that is just a singular figure.
Now, it is true that you end up giving the government a single figure and they take your word for it to begin with.. But the issue is that they may choose to scrutinize your tax report, at this point you will be expected to provide the evidence that substantiates your reported capital gain (which will need to include your trade/purchase record).
No problem man.
Angel Sanders
Daily reminded that HMRC commission these shill threads.
Crypto was designed to remove any third party jurisdiction over your currency
If you're smart and determined you WILL find a way to avoid paying tax.
Isaac Myers
The trouble comes in when you want to use the cash gained for purchasing something like a house or putting it through your bank account. You can't just buy a house out of nowhere without trouble.
Cooper Morales
You can if you are a corrupt politician from another country. Remember that £80m mansion some woman was living in which was the target of the first unexplained wealth order and fuck all happened? One rule for them.
Matthew Wood
sollicitors for house purchases need to verify source of funds, but i guess you can do it yourself somehow.
I will certainly look into tax mitigation for crypto but im not gonna just do what someone on Zig Forums says, it'll take real work
Landon Thomas
Agreed. So never do that.
What about using gains as collateral for a loan? Loans are tax free right?
Jonathan King
It’s funny how the Panama papers revealed that virtually every politician and wealthy person in your country and all over the world paid nothing on their gains and the only outcome of this information leaking was that the reporter who did so was murdered. On top of that many of the wealthiest of these individuals are literal demonic pedo vampires. But despite all this cucks like you are begging to pay up. For fucks sake the money just goes into a black hole while imaginary funds are spent ruining your life in every possible way. Keep YOUR money. It’s YOURS. Crypto is supposed to be your escape hatch.
Colton Allen
100% the system is rigged so that the little guy gets rekt whilst the corrupt elite are involved in all sorts of law breaking including financial.
From my perspective I am going to follow the law as I do not want to risk anything.. But I will try to plan my income in such a way that is the best for me, only legally.
Ryder Rodriguez
Like a Defi crypto loan? Am not too experienced with this. Loans are tax free of course. Not sure about all the details though.
As for traditional finance loans, I am not sure about using undeclared gains as collateral for a loan.
With stuff like this it is important to be as precise as possible.. That being said I would prefer to do everything by the law instead, only out of fear.
John Edwards
Yeah the elites are quite literally the most corrupt people in society, biggest tax avoiders out there.. Even politicians fiddle money, Hillary Clinton being a prime example taking tax free money in her foundation for political favors etc, then paying herself a generous wage out of the foundation and paying for living costs etc . Also low level politicians getting large payments for 'conference talks' etc. All bullshit, all money laundering.
I say to follow the law as a little guy because your life can be ruined by these buggers.
Charles Robinson
Thank you user, very useful. Recently purchased crypto.. so I won't need to declare the purchase now but only when i sell for fiat?
How did you go about finding the accountant and how much did you pay? Did HMRC ever reach to you to validate?
Leo Hall
>I say to follow the law as a little guy because your life can be ruined by these buggers. Ngmi because realistically you will never get there playing by the rules, which is the whole point. Strength in numbers only.
Zachary Thompson
Holy kek a real indian for once and not a street shitter.
Good luck in your noble endeavours!
Logan Gray
The only people who make these "omg im paying so much taxes on crypto" posts are all CIA glowniggers
>so I won't need to declare the purchase now but only when i sell for fiat?
Yes your 100% fine if you went cash>crypto only. Even if decades pass. Only when you sell it for cash, trade it for other crypto or dispose of it another way such as a gift to someone.
>How did you go about finding the accountant and how much did you pay?
I had an accountant before already from original income source, but when crypto came in and everything I decided that the accountant was not capable of helping me in this regard so I wanted to find a new accountant. I knew someone else that had a good experience with another accountant that had a more professional organization (not just a 1 man operation but an office with several people) and decided to go with them.
I pay my accountant around £470 if I remember correctly (for both my income tax and capital gains tax).
The accountant has been very useful for various reasons, one of them being keeping track of my national insurance payments (knowing when I am owed a refund for payment on account etc). Apparently a lot of people over-pay their national insurance due to difficulty keeping track of what is owed for refunds etc, HMRC will not let you know if you over pay generally.
>Did HMRC ever reach to you to validate?
No I haven't heard from them. I have declared two taxes years of crypto capital gains so far and about 6 years of income tax.
Noah Myers
You will be risking your personal security but I get it of course. I think the main goal should be that people like Bill Gates and Les Wexner are arrested and perhaps have all of their assets seized.
Jaxon White
Damn, how does this play out when you log all the crypto-crypro transactions?
Let's say you traded 0.1 BTC to 5ETH 2 months ago, do you need to include the fiat amount that was traded (at the price of the pound to crypto 2 months ago) or the current price?
I might just be fine taking our 11k tax free every year.
