Get your Tax Return done in only 4 easy steps!
Step 1
Book a discovery call with our Crypto Tax Experts to discuss your requirement and get a customized quote.
Step 2
Step 3
Step 4
Cryptocurrency Tax Returns
What’s included in our services
- =Tax return registration (if needed)
- =Advice on tax treatment of your Cryptoassets
- =Liaising with your Bank, Exchanges, Stockbrokers etc to gather relevant data for your tax returns
- =Advises on how to reduce your tax bill
- =File tax returns online to HMRC on your behalf
- =Disclosure of prior years’ gains and income from Cryptoassets
- =Provide Crypto tax tools to accurately and securely manage your Crypto Portfolio
- =Provide Cryptocurrency Tax Reports in line with HMRC guidance.
- =DeFi & NFT transaction reconciliation
- =Calculate your tax liability accurately
- =Mining and staking transactions
- =Claiming capital losses from Cryptoassets
- =Advising on appropriate record retention
- =Advice on HMRC payment and payment on account
- =Unlimited general advice via email and Zoom
- =Dealing with HMRC on your behalf
Why eCloud Experts for Crypto Tax Returns?
Crypto Experts
Quick Turnaround
Peace of Mind
Security
Audit Guarantee
Tax Returns Access
Accuracy guarantee
Unlimited Support
Ready to get started?
Whether you’re an Active trader or Miner
We have a package just for you
Starter
From £550 / Year
- Up to 2 Exchanges
- Up to 500 Transaction
- Income/Gain up to £20K
- Crypto Tax Software
- Cryptocurrency Tax Reports in line with HMRC guidance.
- Tax Return Submission to HMRC
- Tax liability calculation
- Advising on appropriate record retention
- Advice on HMRC payment and payment on account
- Advice on tax treatment of your Cryptoassets
- HMRC Tax Agent Representation
- Dedicated Crypto Accountant
From £850 / Year
- Up to 6 Exchanges
- Up to 1800 Transaction
- Income/Gain up to £50K
- Crypto Tax Software
- Cryptocurrency Tax Reports in line with HMRC guidance.
- Tax Return Submission to HMRC
- Tax liability calculation
- Advising on appropriate record retention
- Advice on HMRC payment and payment on account
- Advice on tax treatment of your Cryptoassets
- HMRC Tax Agent Representation
- Dedicated Crypto Accountant
From £1250 / Year
- Up to 12 Exchanges
- Up to 6000 Transaction
- Income/Gain up to £100K
- Crypto Tax Software
- Cryptocurrency Tax Reports in line with HMRC guidance.
- Tax Return Submission to HMRC
- Tax liability calculation
- Advising on appropriate record retention
- Advice on HMRC payment and payment on account
- Advice on tax treatment of your Cryptoassets
- HMRC Tax Agent Representation
- Dedicated Crypto Accountant
Custom / Year
- 12+ Exchanges
- 6000+ Transaction
- Income/Gain £100K+
- Crypto Tax Software
- Cryptocurrency Tax Reports in line with HMRC guidance.
- Tax Return Submission to HMRC
- Tax liability calculation
- Advising on appropriate record retention
- Advice on HMRC payment and payment on account
- Advice on tax treatment of your Cryptoassets
- HMRC Tax Agent Representation
- Dedicated Crypto Accountant
Optional add-ons:
- Self Employment Income
- Employment Income
- Rental Income
- Mining and Staking Transaction
- DeFi & NFT transaction
- Disclosure of Prior year tax return
- Capital Loss Claims
- Stocks and Shares declaration
- Annual Tax Planning
FAQ’s
What are Cryptoassets?
HMRC does not consider Cryptocurrency (exchange token) to be money or currency- like GBP. Instead, it’s seen as a property, which is a Capital Asset – just like a rental property or a share.
The government Cryptoasset Taskforce identifies 4 types of Cryptoassets: Exchange tokens, Utility tokens Security tokens and Stablecoins
- Exchange tokens – these are intended to be used as a method of payment and include cryptocurrencies like Bitcoin and Litecoin. They do not provide any rights or access to goods or services.
- Utility tokens – these provide the holder with access to particular goods or services on a platform usually using Distributed Ledger Technology (DLT).
- Security tokens – these may provide the holder with particular interests in a business, including debt due by the business or a share of profits in the business.
- Stablecoins – Stablecoins are another prominent type of cryptoasset. The premise is that these tokens minimise volatility as they may be pegged to something that is considered to have a stable value such as a fiat currency (government-backed, for example US dollars) or precious metals such as gold
The tax treatment of all types of tokens is dependent on the nature and use of the token and not the definition of the token.
How is Cryptocurrency taxed in the UK?
In the UK, there is no specific Cryptocurrency tax or Bitcoin tax. Instead, your crypto will either be subject to Capital Gains Tax or Income Tax.
The Crypto tax you’ll pay depends on the specific transactions you’re making with your crypto. If you’re seen to be making an income, you’ll pay Income Tax. If you’re seen to be making a capital gain, you’ll pay Capital Gains Tax.
Do I need to pay Taxes on all Crypto gains?
Actually, No. You only have to pay capital gains tax on overall gains above the annual exempt amount.
For 2021/22, the annual exempt amount is £12,300
If your taxable income is between £12,500 and £50,000, you’ll pay 10% on your capital gains.
If your taxable income is over £50,000, you’ll pay 20% on your capital gains
If an individual runs a business making profit from trading cryptocurrency, income tax rules take priority over capital gains.
Do I have to pay income taxes on Crypto?
- Getting paid in crypto – known as ‘Money’s worth’ and is subject to National Insurance too.
- Staking rewards
- Mining tokens
- Airdrops– in most instances.
| Taxable income | Tax rate |
| Up to £12,570 (Personal allowance) | 0% |
| > £12,571 to £50,270 (Basic rate income band) | 20% |
| >£50,271 to £150,000 (Higher rate income band) | 40% |
| over £150,000 (Additional rate income band) | 45% |
How much Crypto Tax do I owe?
You owe tax based on the point at which you sell your Bitcoin. HMRC describes this as your disposal of your crypto assets.
They define this as:
- Selling your crypto for fiat currency (e.g. GBP USD EUR)
- Exchanging between crypto and crypto (e.g. Bitcoin to Ether)
- Using crypto to pay for goods and services
- Giving away your crypto to someone else
From this point, you should work out what tax year you’re in. If your profits are above £12,300, you will have to declare this to HMRC and pay tax by 31st January. For instance, if you sell your crypto in May 2020, you owe tax for your earnings in the 2020/21 tax year. You pay this tax bill by 31st January 2021.
Can I deduct my Crypto losses?
If you make a capital loss (you sell your crypto for less than you bought it), you can offset this against the gains. But if you do this, you will need to report the loss to HMRC. This can be done on your tax return. You can claim your losses up to 4 years from the end of the tax year that they occurred in.
When do I need to report my crypto taxes to HMRC?
The UK financial year runs from the 6th of April to the 5th of April the next year. So the financial year you’ll be reporting on is from the 6th of April 2020 to the 5th of April 2021. You need to report your taxes for this financial year by the 31st of January 2022. You’ll declare all your crypto taxes in your Self Assessment Tax Return
What records do I need to keep?
HMRC suggests anyone dealing in Cryptocurrencies needs to keep the following records:
- The type of cryptoasset
- Date of the transaction
- Whether the assets were bought or sold
- The number of units involved
- Value of the transaction in pound sterling (as at the date of the transaction)
- The cumulative total of the investment units held
- Bank statements and wallet addresses, in case these are needed for an enquiry or review.
You should also keep evidence of the following:
- Receipts of cryptocurrency purchases or transfers
- Cumulative totals of assets owned
- Exchange records
- Invoices for any agent, accountant or legal costs
- Digital wallet records and keys
- Any software costs associated with the management of your tax affairs
Do I need to meet with you in person?
No, we work with you through email, phone calls, video chat and screen shares to gather your data and accurately complete your return.
Do I have to give you my API keys/ wallet passwords to my accounts?
No, we take the safety of our client’s information seriously, which is why we only allow access through a CSV or reporting software only.
I do have an Accountant. Can I still use your services?
We don’t need to be your accountant to use our Crypto Tax Return services. This can be a one-off service.
Can I pay in Crypto?
Yes, we only accept stablecoins, but we are open to other currencies depending on their ranking (BTC, ETH, ADA, DOT… ).