Crypto Tax Returns

If you've bought, sold, or traded cryptocurrency like Bitcoin, Ethereum, or other cryptoassets, you might need to pay tax and file a crypto tax return. Cryptocurrency is subject to Capital Gains Tax when you dispose of it (sell, exchange, gift, or spend it) (gov.uk Capital Gains Tax). If you're trading cryptocurrency as a business activity, profits are subject to Income Tax instead of Capital Gains Tax. You must report crypto gains on your Self Assessment return if total gains exceed the annual CGT allowance (£3,000 for 2024/25). Each disposal of crypto is a separate transaction—you calculate gain or loss on each one based on purchase price and disposal proceeds.

The problem is most people don't understand when crypto tax applies or how to calculate it. They think crypto is tax-free, don't know about disposal events, or struggle with calculating gains across multiple transactions. That causes problems—undeclared crypto gains mean HMRC enquiries and penalties, incorrect calculations mean overpaid or underpaid tax, and missing records make it hard to prepare accurate returns.

We handle crypto tax returns for people who've traded or held cryptocurrency: crypto transaction analysis (identifying all taxable transactions and calculating gains/losses), capital gains tax calculation (calculating CGT on crypto disposals with proper cost basis), income tax calculation (calculating Income Tax on crypto income like mining, staking, or airdrops), Self Assessment reporting (reporting crypto gains and income on Self Assessment returns), record keeping support (helping you maintain proper records of all crypto transactions), and tax planning (planning crypto disposals to minimize tax within legal limits). Whether you're in Medway with Bitcoin gains, in Maidstone trading cryptocurrency, or in Canterbury with mining income, we'll handle your crypto tax returns that work. No HMRC enquiries, no penalties—just proper crypto tax compliance that keeps you right.

What this helps you do (fast)

• Meet crypto tax obligations — Report crypto gains and income correctly on your Self Assessment return. Proper reporting means no HMRC enquiries or penalties.
• Calculate crypto tax correctly — Work out Capital Gains Tax and Income Tax on crypto transactions accurately. Correct calculations mean you pay the right amount of tax.
• Maintain proper records — Keep detailed records of all crypto transactions that HMRC requires. Good records make filing returns easier and protect you in case of enquiries.
• Understand when tax applies — Learn what crypto transactions trigger tax and which don't. Understanding the rules helps you stay compliant and plan ahead.
• Minimize crypto tax legally — Plan crypto disposals to use your annual CGT allowance efficiently and minimize tax. Tax planning reduces your crypto tax bill legally.
• Avoid penalties and HMRC enquiries — File accurate returns on time to avoid late filing penalties and HMRC investigations. Compliance saves money and stress.

How it works

Step-by-step process for crypto tax returns:

1. Discovery call — We chat about your crypto activity: what cryptocurrency you've bought or sold, when you traded, whether you've received crypto as income (mining, staking, airdrops), what records you have, and what you want to achieve.
2. Crypto transaction analysis — We analyze all your crypto transactions:
   • Transaction identification — Identify all taxable transactions (sales, exchanges, disposals)
   • Transaction classification — Classify transactions as capital gains or income (trading vs investment)
   • Cost basis calculation — Calculate cost basis for each transaction (purchase price, fees, etc.)
   • Gain/loss calculation — Calculate gain or loss on each transaction (proceeds minus cost basis)
   • Income identification — Identify crypto income (mining rewards, staking rewards, airdrops, etc.)
   • Transaction records — Review and organize transaction records (exchange statements, wallet transactions, etc.)
   Crypto transaction analysis ensures we identify all taxable events and calculate them correctly.
3. Capital gains tax calculation — We calculate CGT on crypto disposals:
   • Total gains calculation — Sum all capital gains from crypto disposals during the tax year
   • Total losses calculation — Sum all capital losses from crypto disposals (can offset gains)
   • Net gain calculation — Calculate net gain (total gains minus total losses)
   • Annual exemption application — Apply the £3,000 annual CGT allowance to reduce taxable gain
   • Taxable gain calculation — Calculate taxable gain after annual exemption
   • Tax rate determination — Determine tax rate (18% for basic rate taxpayers, 24% for higher/additional rate taxpayers from October 2024)
   • CGT liability — Calculate CGT due on taxable gain
   Capital gains tax calculation ensures CGT is calculated correctly with all disposals accounted for.
4. Income tax calculation (if applicable) — If you have crypto income:
   • Income identification — Identify all crypto income (mining, staking, airdrops, payment for services)
   • Income valuation — Value crypto income in GBP at the time received (using exchange rates)
   • Total income calculation — Sum all crypto income for the tax year
   • Personal allowance application — Apply personal allowance (£12,570) if available
   • Taxable income calculation — Calculate taxable income after personal allowance
   • Income tax calculation — Calculate Income Tax at appropriate rates (20%, 40%, or 45%)
   • National Insurance — Calculate Class 2 and Class 4 National Insurance if crypto income is trading income
   Income tax calculation ensures crypto income is taxed correctly as income rather than capital gains.
5. Record keeping support — We help maintain proper records:
   • Transaction documentation — Organize records of all crypto transactions (dates, amounts, values)
   • Exchange rate records — Document exchange rates used for GBP valuations
   • Cost basis records — Maintain records of purchase prices and cost basis calculations
   • Income records — Document crypto income received (mining, staking, etc.)
   • Record retention — Ensure records are kept for at least 5 years as HMRC requires
   Record keeping support ensures you have proper documentation to support your tax return and respond to HMRC enquiries.
6. Self Assessment reporting — We report crypto tax on your return:
   • Capital gains reporting — Report crypto capital gains on SA108 form (Capital Gains supplementary pages)
   • Income reporting — Report crypto income on SA100 form (if applicable)
   • Detailed transaction reporting — Provide details of disposals, proceeds, costs, and gains/losses
   • Return filing — File your Self Assessment return with crypto tax included
   • Filing confirmation — Get confirmation from HMRC that return has been received
   Self Assessment reporting ensures crypto gains and income are declared correctly on your tax return.

We handle all aspects of crypto tax returns. The key is identifying all taxable transactions, calculating gains and income correctly, maintaining proper records, and reporting everything on your Self Assessment return, so you pay the right amount of tax and avoid HMRC enquiries.

Costs & timelines

Pricing factors:

• Number of transactions — More transactions mean more analysis and calculations, so costs increase
• Transaction complexity — Simple transactions (buy and sell) cost less than complex transactions (multiple exchanges, DeFi activities, mining income)
• Record availability — If you have good records, costs are lower than if records need to be reconstructed
• Income vs capital gains — Returns with both income and capital gains may cost more due to additional calculations
• Tax planning — If you need crypto tax planning advice (timing disposals, using allowances), this is separate

Commonly reported ranges by local providers:

• Simple crypto tax return (few transactions): £200–£400 for straightforward crypto tax return with a small number of buy/sell transactions
• Standard crypto tax return (moderate transactions): £300–£600 for typical crypto tax return with multiple transactions, some income, basic record keeping
• Complex crypto tax return (many transactions): £500–£1,000+ for complex crypto tax returns (many transactions, multiple exchanges, DeFi activities, mining/staking income, record reconstruction)
• Crypto transaction analysis only: £150–£300 for analysis and calculation only (you file the return yourself)
• Ongoing crypto tax support: £200–£500 per year for ongoing support (transaction tracking, quarterly reviews, year-end filing)

Why crypto tax return filing costs what it does:

• Transaction analysis requires detailed work to identify all taxable events and calculate gains/losses accurately
• Cost basis calculation requires understanding of pooling methods and tracking purchases across multiple transactions
• Income tax calculation requires valuing crypto income in GBP and calculating tax at appropriate rates
• Record keeping support requires organizing and maintaining detailed transaction records
• Self Assessment reporting requires completing forms correctly with all crypto transactions properly declared

Timeline: For returns filed before the deadline, crypto tax return preparation usually takes 2-3 weeks from when we receive all your transaction records. If records need to be reconstructed or transactions are complex, this may take longer. We'll need all records at least 4-6 weeks before the 31 January deadline to ensure on-time filing.

Payment: Crypto tax is paid through Self Assessment by 31 January following the tax year end. If you can't pay immediately, HMRC may accept payment plans, but interest will be charged on late payments. We can help you understand payment options if needed.

No hidden fees. Crypto tax return price includes transaction analysis, CGT and Income Tax calculation, record keeping support, and Self Assessment reporting. Ongoing crypto tax support or complex transaction analysis is separate if needed.

Kent (UK) focus

We work with people across Kent who've traded or held cryptocurrency: people in Medway with Bitcoin gains, people in Maidstone trading cryptocurrency, and people in Canterbury with mining or staking income.

Kent crypto investors face the same crypto tax obligations as everyone else—reporting capital gains on disposals, declaring crypto income, and maintaining proper records. The difference is when you get proper help with crypto tax returns, you identify all taxable transactions, calculate gains correctly, and report everything accurately. That's what helps Kent crypto investors stay compliant and avoid HMRC enquiries.

Common Kent crypto tax scenarios:

• Bitcoin investors — People who bought and sold Bitcoin or other cryptocurrencies
• Crypto traders — People trading cryptocurrency regularly (may be subject to Income Tax if trading as a business)
• Mining/staking income — People receiving crypto income from mining or staking activities
• Crypto payments — People receiving cryptocurrency as payment for services
• DeFi activities — People involved in decentralized finance activities (lending, yield farming, etc.)

Kent business market context:

• Many Kent businesses and individuals are investing in or using cryptocurrency
• Proper crypto tax help helps Kent taxpayers comply with HMRC requirements
• Accurate reporting helps Kent crypto investors avoid penalties and enquiries
• Tax planning helps Kent taxpayers minimize crypto tax legally

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent crypto investors are dealing with. Crypto transaction analysis, capital gains calculations, income tax calculations, record keeping—we'll handle your crypto tax returns that keep you compliant and avoid HMRC enquiries.

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