Many first-time cryptocurrency investors will be filing their taxes come April. Are Are Are you aware of your tax liabilities concerning crypto assets?
This exclusive webinar features Wright Vigar’s Crypto Tax Specialist Louise Lane, who spoke out on her stance on crypto taxes in the April 5, 2022 year-end.
You You You can also listen to Dan Howitt, Founder and CEO of Recap.io, the UK’s most reliable crypto asset tax calculator. He I He created Recap after spending a great deal of time trying to manually compute taxes on 50,000 transactions. In 2018, it finally became possible to calculate taxes with Recap. We We We are now aiding thousands of customers from three countries to finish their crypto tax filings within 15 minutes.
At present, 350 million people are using cryptocurrency. It is predicted that 1 billion people will be using crypto assets by 2024, and five hundred billion by 2030.
But What What is cryptographic technology?
Louise Lane of Wright Vigar said: “The first thing to consider is the tax implications of crypto activities. The next thing to think about is whether this is a business. Are you trading a lot? Are you buying and selling crypto to such an extent that it has become a business? Surprisingly, HMRC expects this only in exceptional circumstances. They assume most people involved in crypto assets are investing for long-term capital appreciation.”
Cryptocurrency Should Be Treated as Foreign Currency by Investors
“If the payment for your contract of employment or self-employment is made in crypto and not sterling, treat it the same as if you received the sterling equivalent on the date of receipt. You’ll need to convert it to sterling when you receive it. That means you will be subject to income tax, but not the same as a company. One important thing to remember is that when you have miscellaneous income, you can’t deduct hardware costs like mining equipment, which is quite expensive.”
HMRC Has New Guidance Regarding Token Transfers and Software is an Important Tool to Help You Understand Your Tax Position
Lane added: “Once you have secured your tokens, it’s time to check if beneficial ownership has been transferred to another party, platform or entity. What we usually see is that crypto investors will have so many different exchanges and wallets that they need software to keep track of it all. You can’t calculate your tax position for your activities in the product and then your tax position in the currency base; everything has to be connected. The software pulls all the information together and then applies the rules to your tax position.”
Although Crypto Taxes May Seem Complex, They Can Be Calculated. With Recap.io, You Can Overcome Your Challenges
Howitt said: “Recap.io makes crypto asset accounting easy. We connect to all the places where you can buy or sell cryptocurrency and pull all your transaction records. Once