Why use crypto tax experts?
It’s been a bumpy ride for the Crypto market – setbacks such as the bankruptcy of the FTX exchange and the boom and bust cycle over the last few years have been pretty hair raising! But with Bitcoin recently achieving an all-time high of £67,407 per coin, the crypto space continues to be pretty buoyant as an alternative means of investment. And as with any potential new revenue raising area, HMRC are keeping a very close eye on proceedings.
And as part of their strategy HMRC are encouraging crypto investors and businesses to ‘come clean’ about previous crypto transactions. So if you have inadvertently forgotten to tell HMRC about your historic crypto transactions it's really important that you disclose them now. We think that HM Revenue will eventually run out of patience and start taking a more hardline approach – we’ve seen it before with other ‘amnesty’ initiatives. And because HMRC have increased powers to track down crypto tax evaders it's vital to use an accountancy firm who can help make sure you aren’t heavily penalised for your transgressions!
Why choose our firm?
We’ve been working in the crypto space for nearly 10 years – way before most of our competitors! We were one of the first to blog online about the tax implications (putting our money where our mouth is) and we liaised with HMRC about the potential treatment (one of the very few firms outside of the ‘Big 4’ who did this).
Our experience in this sector is now extensive – we’ve dealt with many, many businesses and individuals to help them navigate the uncertainties and confusion in this new market.
And just a little history as to why we consider ourselves to be leading experts in this field:
Our first client was a UK Bitcoin Exchange with a £multi-million turnover and complex business needs. They needed an accountancy firm who could provide a bespoke solution to ensure they kept on the right side of HMRC. At that time, more people were dabbling in Crypto as an investment, Bitcoin was rising in price and there was very little information available publicly about the UK tax treatment. So this uncertainty meant they’d tried other firms who weren’t willing or able to help them – and that’s when they turned to us. It was a fantastic learning curve and got us in on the ground floor of a developing market
At the start of 2017 there was no definitive idea as to how cryptocurrency might be taxed in the UK - so we’re very proud to have been one of the first (if not the first) accountancy firm in the UK to tackle the topic and give an opinion online (oh - we might already have mentioned this ) .
And because we were recognised as being ‘crypto tax experts’ we are also very proud to be one of the few accountancy firms outside of the 'Big 4' who have consulted directly with HMRC's Crypto Taxes Team about the tax treatment (we might already have mentioned this too!).
And then at the end of 2018, HMRC published their own guidance which confirmed much of our early insights on the tax treatment.
So if you'd like to know how we can help you with your crypto taxes, feel free to give us a call on 01202 048696 or email us at [email protected].