The specialist cryptoassets team at RPG Chartered Accounts, incorporating Crawfords, has been advising clients on their tax obligations relating to cryptocurrencies for many years, with an involvement in the sector since 2014. We understand cryptoassets. Our team is able to help with current year transactions, catching up with the submissions for previous years and tax planning for future transactions.
Over the years we have supported and guided investors who have varying degrees of involvement in cryptoassets for example investors:
- In their first year of cryptocurrency trading and those with years of crypto trading experience
- Who have made modest gains over a small number of transactions and others who have generated significantly higher sums over a number of years
- With investments over a multitude of transactions in mixed currencies or with a focus on one currency
- Who look at crypto investment as a sole investment or as part of a portfolio alongside other non-crypto investments
- For whom crypto is part of their business and part of their daily life, perhaps being paid in cryptocurrency.
The tax treatment of transactions
Personal investment gains are subject to Capital Gains Tax in the UK (or in certain circumstances Income Tax) and gains on disposals within a corporate structure are subject to Corporation Tax. It is essential therefore to maintain a complete and detailed record of all of your crypto transactions.
It is also important to understand that there are highly complex matching rules for purchases and sales, and gains and losses of cryptocurrencies. A poorly structured series of purchases and sales can mean you pay more in tax than you have gained in overall value so it is worth giving this due consideration before concluding any transactions.
How we can help
RPG’s specialist crypto tax team will determine the amount of tax that is due for payment, advise you what payments are due to HMRC and when they have to be paid, and make the official submission to HMRC through your Self Assessment tax return.
In terms of calculating the amount of tax to be paid, crypto exchanges will generally provide access to downloadable reports / CSV files for each financial year of trading; alternatively we will use software to extract the data via APIs. Members of RPG’s specialist cryptoasset team will then review your transaction history, taking into account any other personal, business or other considerations and carry out the calculations.
The team will also take into account any business transactions undertaken using cryptoassets such as being paid or paying for goods and services in cryptocurrency. This is a highly complex and specialist area in which points can easily be overlooked or misunderstood, and should be undertaken by an expert.
We anticipate that HMRC may look back to crypto trading records from 2016 (or earlier) so if you have not reported earlier years, please do not ignore the situation; it can still be dealt with. HMRC look more favourably on those who come forward voluntarily as opposed to those whose omissions they discover. RPG’s specialist cryptoassets team are used to advising and assisting clients with several years of outstanding transactions which need to be accounted for, tax to be calculated, disclosed and paid. If required, we will speak to and negotiate with HMRC on your behalf.
As the timing of the purchase and disposal of cryptocurrencies may have an impact on the amount of tax paid, we are able to advise you on the timeliness of future transactions from a tax perspective.
RPG’s specialist team can also advise whether it is beneficial for you to create a corporate structure for your cryptoasset trading, taking into account your full financial and business circumstances, and can advise on suitable methods of record keeping.
The wider RPG team can also advise on the accounting, bookkeeping and tax matters relating to any non- crypto business operations in which you may be involved.
HM Revenue & Customs
There has been a general lack of awareness that gains made from crypto transactions are subject to UK tax rules. HMRC are looking to redress this and published their cryptoassets manual in March 2021. This clarifies the tax implications that can arise from transactions involving cryptoassets and explains HMRC’s interpretation of the law as it relates to cryptoassets.
HMRC can now access current and historic data from crypto exchanges which allows them far greater reach in terms of investigating tax errors or fraud. Indeed HMRC are now reaching out to crypto investors through “nudge letters” to check whether those individuals have reported their tax position accurately.
What should you do?
We suggest that you speak to one of our crytoasset specialist tax advisers. Our team is able to help with current year transactions, catching up with the submissions for previous years and tax planning for future transactions. Whether you only have recent gains or if they go back a number of years, an experienced crypto tax specialist will be invaluable in guiding you through the process.
Speak to one of our specialist crypto advisors based at our offices in central Manchester email@example.com or call 0161 608 0000. We look after crypto tax clients based across the UK.
RPG have teamed up with Koinly for the easy management of your crypto transactions
We are delighted to have partnered with Koinly in order to provide you with an end to end solution for management of your crypto transactions, calculation and the payment of your UK tax.
As a welcome gift, when you become a client of RPG, you will receive a 40% discount on each of the year’s transactions that you purchase from Koinly. Email our specialist team on firstname.lastname@example.org for further details and click here for further information about how Koinly can help you.
We have received an excellent service from the team at RPG for well over 20 years. We particularly appreciate RPG's real interest in our company and suggestions for improvements. The service RPG provides goes well beyond what we could expect. The attention to detail and the prompt, professional service the team provides means that we are reassured that should we require urgent or unusual advice, the team will provide it. We would have no hesitation in recommending RPG.
Executive Chairman - SheffProp
I would like to thank RPG for your unbelievable help, assistance and friendship for over 40 years. Nothing has ever been too much trouble. Words alone are insufficient, and I think that the same would apply to my former colleagues and my family who have also come to rely on your advice and guidance.
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We have worked with RPG for many years, for good reason. They are not only extremely knowledge but they really take the time to get to know you as customers and also as people. This really makes a difference, as whilst it is of course important that you receive great service, which we do, it’s also essential to work with professionals who you can really trust and who go out of their way to know your business as well as you do, giving ultimate comfort that you are all striving towards the same goals. I cannot recommend them highly enough.
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RPG have now acted for our various companies for over 15 years. Their advice and commercial attitude in dealing with Tax, Audit and general businesses matters has always been of high quality and queries dealt with promptly. The team at RPG are experts in their field, they understand the SME market place well. They have been involved in all our corporate transactions, from setting up of businesses, ongoing support of our management teams through to being part of the team that negotiated the successful sale of a group company.
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