Crypto tax return assistance, including help for those yet to file a tax return

Crypto tax returns can be complicated and if you need to complete a Self Assessment tax return that includes calculations for dealings in crypto, our specialist crypto tax advisors can advise you.

We work with a wide range of clients, from individual investors and traders through to businesses within the crypto industry as well as businesses that invest in crypto.

If you are yet to complete your Self Assessment for the 20/21 tax year, need advice on historic crypto activity, or indeed need to plan your tax liabilities for this year and the future, our specialist team of crypto tax advisors and accountants can assist you.

When is crypto liable for tax?

Many people are not aware of the rules surrounding how cryptocurrency or cryptoassets are taxed in the UK. Tax may be due in a wide range of circumstances, including when one type of crypto is exchanged for another type of crypto (not just when it is exchanged back to fiat). Further information on this can be found on our crypto tax page here.

Missed the 31 January 2021 deadline? – no penalties if you submit your return and pay your tax by 28 February 2022

Whilst the 31 January Self Assessment deadline has now passed, if you file a 20/21 tax return by 28 February 2022, no late filing or payment penalties will be charged. It is important to note that interest on any tax outstanding is charged from 31 January 2022 onwards, so it is important to submit a return and pay any tax that is due as soon as possible. More information on this is available in our recent article here.

Including crypto in a Self Assessment for those already registered for Self Assessment

When capital gains tax is liable on crypto (as earnings deemed investment) you only usually need to declare this if your total capital gains (from all sources) in the tax year are above the annual exempt amount (£12,300 for the 20/21 tax year).

An exception to this is when you are already registered for Self Assessment. In these circumstances, when the amount invested/traded (and converting one type of crypto to another type of crypto counts as a trade) exceeds four times the annual allowance, this needs to be declared on your Self Assessment tax return, even if profits are less than the annual allowance (or no profits have been realised).

Completing a Self Assessment for the first time

You may have only recently discovered that you need to complete a Self Assessment tax return for your historic crypto earnings, which may include the 2021 tax year or earlier years. This may be after receiving a letter from HMRC or from an exchange. In either circumstance, we can review your current and historic crypto activity and establish the correct course of action to take. Also, if you are unsure whether you need to complete a tax return to include your crypto, we can advise you. Please contact Alexander & Co for an initial complementary consultation.

Will you need to submit a Self Assessment return for the current tax year? Take advice now

If you need to submit a tax return for the 21/22 tax year, contact us now for assistance.

Alexander & Co can advise on whether you are likely to need to pay tax on your crypto earnings during this time and help to make sure your affairs are in order ahead of the next tax deadline.

We can also review any historic crypto activity as well as advising on making sure your affairs are structured in the most tax efficient way going forward.

Contact Alexander & Co for assistance with all aspects of crypto tax

Alexander & Co has a specialist team of tax advisors and accountants who can advise on all aspects of crypto tax. We advise both individuals and businesses that work or invest in the crypto industry.

To arrange your initial consultation with one of the leading crypto tax specialists, please complete the form below, call us on 0161 832 4841 or email info@alexander.co.uk and we will be in touch.

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