Crypto Transaction Bookkeeping

Dealing with cryptocurrency transactions for tax purposes is complicated. If you're trading crypto, using it to buy things, or accepting it as payment in your business, you need to track every transaction, calculate Capital Gains Tax on disposals, and keep detailed records for HMRC. Most people don't realize that crypto-to-crypto exchanges are taxable events, or that you need to record the GBP value of every transaction. Get it wrong and you're dealing with HMRC penalties and potentially back taxes.

The problem is most crypto traders and businesses try to handle crypto bookkeeping themselves, especially if they're just dabbling or only have a few transactions. That's fine when it's simple, but crypto tax is complex—every disposal event needs CGT calculation, you need to track GBP values at transaction time, you need to identify which coins you're disposing of (FIFO or specific identification), and you need to keep records for at least 6 years. Get it wrong and you're dealing with HMRC penalties, interest charges, and potentially massive back tax bills.

We handle crypto transaction bookkeeping for traders and businesses: transaction tracking, CGT calculations on disposals, disposal event identification, GBP valuation, and record-keeping for HMRC compliance. Whether you're a crypto trader in Medway doing regular trading, a business in Maidstone accepting crypto payments, or a crypto investor in Canterbury with a portfolio, we'll track your transactions properly and make sure your tax reporting is accurate. No guesswork, no penalties—just proper crypto bookkeeping that keeps you compliant with HMRC.

What this helps you do (fast)

• Track all crypto transactions — Every buy, sell, exchange, spend, gift, and disposal recorded with date, type, amount, GBP value, and wallet addresses. Complete transaction history.
• Calculate Capital Gains Tax accurately — Identify disposal events, calculate gains and losses, apply CGT rates, account for annual CGT allowance (£6,000 for 2024-25, reducing to £3,000 from 2024-25). No overpaying or underpaying tax.
• Handle crypto-to-crypto exchanges — Every exchange is a disposal event (selling one crypto to buy another). We'll track which crypto you're disposing of, calculate the gain/loss, and record the acquisition of the new crypto.
• Value transactions in GBP — Every crypto transaction needs a GBP value at the time it happened. We'll use exchange rates to convert crypto amounts to GBP for tax purposes.
• Identify disposal method — FIFO (first in, first out) or specific identification (if you can prove which coins you sold). We'll help you choose the right method and stick to it consistently.
• Stay compliant with HMRC — Detailed records of all transactions, disposal calculations, CGT calculations, ready for Self Assessment. Avoid penalties and interest.

How it works

Step-by-step process for crypto bookkeeping:

1. Discovery call — We chat about your crypto activity: what types of crypto you hold, how many transactions you have (roughly), whether you're trading regularly or just holding, if you're accepting crypto as business payments, and what your current tracking setup looks like (if you have one).
2. Transaction data collection — We gather all your crypto transaction data:
   • Exchange statements — Download CSV files or API connections from exchanges (Coinbase, Binance, Kraken, etc.)
   • Wallet transactions — Export transaction history from software wallets (MetaMask, Exodus, etc.) or hardware wallet records
   • DeFi transactions — If you're using DeFi platforms, we'll need transaction records from blockchain explorers or platform exports
   • Business crypto payments — If your business accepts crypto, we'll need records of payments received
3. Transaction categorization — We categorize each transaction:
   • Acquisition — Buying crypto with fiat (GBP), receiving crypto as payment, mining, staking rewards
   • Disposal — Selling crypto for fiat (GBP), spending crypto, gifting crypto, crypto-to-crypto exchanges
   • Transfer — Moving crypto between wallets (not taxable, but needs tracking)
4. GBP valuation — We convert every transaction to GBP value at the time it happened:
   • Use historical exchange rates to get accurate GBP values
   • Record the exchange rate used and the source
   • Handle different crypto pairs (BTC/GBP, ETH/GBP, etc.)
5. Disposal identification — For each disposal event, we identify which crypto you're disposing of:
   • FIFO method — First coins you acquired are the first ones you dispose of (default method)
   • Specific identification — If you can prove which specific coins you sold (requires detailed records), you can choose this method
   We'll help you pick the right method and stick to it consistently (you can't switch methods once chosen).
6. Capital Gains Tax calculation — For each disposal event, we calculate:
   • Cost basis — What you paid for the crypto (acquisition cost in GBP)
   • Disposal proceeds — What you received (sale price, exchange value, spending value in GBP)
   • Gain or loss — Disposal proceeds minus cost basis
   • CGT liability — Apply CGT rates (10% or 20% depending on your income tax band) after annual CGT allowance
7. Record keeping — We maintain detailed records as required by HMRC:
   • Date of each transaction
   • Type of transaction (buy, sell, exchange, spend, gift, etc.)
   • Amount of crypto involved
   • GBP value at transaction time
   • Wallet addresses (if relevant)
   • Disposal proceeds and cost basis
   • Gain or loss calculation
   • CGT calculation
8. Self Assessment prep — Throughout the year, we keep your records current. When it's time to file Self Assessment, we provide you with:
   • Summary of all disposals for the tax year
   • Total gains and losses
   • CGT calculation
   • Ready for inclusion in your Self Assessment return

We work with whatever data sources you have: exchange CSV files, wallet exports, API connections, blockchain explorers, or even manual transaction lists. The key is capturing everything—missing transactions means inaccurate tax calculations and potential HMRC penalties.

Costs & timelines

Pricing factors:

• Number of transactions — More transactions mean more tracking and calculation work. A few trades per month costs less than hundreds of transactions.
• Number of exchanges/wallets — More sources mean more data gathering and reconciliation work.
• Transaction complexity — Simple buy/sell transactions cost less than complex DeFi transactions, staking rewards, airdrops, or crypto-to-crypto exchanges.
• Data organization — If you've got organized records (CSV files, exchange statements), it's faster. If we're working from scattered records or blockchain explorers, it takes longer.

Commonly reported ranges by local providers:

• Crypto bookkeeping setup (one-off): £300–£600 depending on number of transactions and data complexity
• Annual crypto bookkeeping: £500–£1,500/year depending on transaction volume and complexity
• Monthly crypto bookkeeping: £100–£300/month if you want ongoing tracking throughout the year

Why crypto bookkeeping costs more than standard bookkeeping:

• Transaction volume is usually higher (lots of small transactions vs few large ones)
• Every disposal needs CGT calculation
• GBP valuation requires historical exchange rate lookups
• Multiple exchanges/wallets mean more data sources to reconcile
• HMRC compliance requirements are strict (detailed records needed)

Timeline: Setup usually takes about 2–3 weeks depending on transaction volume and data complexity. Once we're set up, ongoing monthly bookkeeping typically takes 2–3 days per month. Annual tax prep (for Self Assessment) takes about 1 week once all transactions are tracked.

No hidden fees. All prices exclude VAT. We offer annual or monthly payment plans and can adjust if your transaction volume changes significantly.

Kent (UK) focus

We work with crypto traders and businesses across Kent: crypto traders in Medway doing regular trading, businesses in Maidstone accepting crypto payments, crypto investors in Canterbury with portfolios, and DeFi users throughout the region.

Kent crypto traders face the same HMRC deadlines as everyone else—31 January for Self Assessment, with crypto gains and losses needing to be declared. The difference is when your crypto bookkeeping is organized and current, these deadlines aren't stressful. You know exactly what disposals you've made, what gains/losses you've realized, and what your CGT liability is going to be.

Common Kent crypto scenarios:

• Crypto traders — Regular buying and selling, multiple exchanges, crypto-to-crypto exchanges, needing CGT calculations on each disposal
• Businesses accepting crypto — Receiving crypto payments, needing to record transactions at market value, pay tax on profits, handle crypto as taxable asset
• Crypto investors — Holding crypto long-term, occasional disposals, needing accurate cost basis tracking and CGT calculations
• DeFi users — Complex transactions (liquidity provision, yield farming, staking), needing transaction tracking across multiple platforms

Kent crypto market context:

• Kent has growing crypto adoption (traders, businesses accepting crypto, investors)
• Crypto tax compliance is mandatory—HMRC is increasingly focused on crypto tax
• Proper bookkeeping prevents penalties, interest, and back tax bills

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent crypto traders and businesses are dealing with. Transaction tracking, CGT calculations, disposal identification, HMRC compliance—we've helped loads of Kent crypto users get sorted, and we know how to make crypto bookkeeping simple.

FAQs