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Manage Your Trade's Taxes With Our Accountants for Crypto Traders

Taxes are complicated by nature. When you add cryptocurrency to the mix, it can be too much to handle.

If you happen to buy and sell Bitcoin, Ethereum, or any other cryptocurrency in 2021, you’ll have to tell the HMRC about any profits during 2022’s tax season. If all you did in the prior year was buy crypto and hold on to it, you might not have to pay anything.

It gets more complicated when you do more things.

Crypto tax company–Bitwave’s CEO and co-founder, Pat White, says, “What is tricky is that there are a lot of crazy things with crypto that you can do, from all the stuff around DeFi to NFTs. That’s going to be the hard part about 2021 taxes.

If you own cryptocurrency or played around with it last year, you may be wondering how to file your taxes and pay the least amount of tax possible.

Call us, and we’ll tell you.

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Why Do You Need An Accountant for Your Crypto?

In the last ten years, there has been a dramatic increase in public understanding of cryptocurrency.

Around the world, governments are beginning to take note of cryptocurrencies, prompting tax authorities to issue new regulations for dealing with the rapidly growing asset class.

In recent years, this has included asking clients about their crypto holdings on tax returns and contacting major cryptocurrency exchanges to monitor customer behaviour. Authorities have made moves toward taxing cryptocurrency, but many aspects remain unclear.

That’s why it’s a good idea for bitcoin holders to work with an accountant who specialises in this area when it comes time to submit taxes.

CPAs with expertise in this area are in high demand due to the expanding nature of the business. Many new crypto-related activities have evolved since Bitcoin’s introduction in 2009. This also indicates that there will be more tax events and situations that will happen to your crypto.

Depending on your location, any cryptocurrency-related activity (investing, trading, mining, staking, yield farming, airdrops) may subject you to taxation.

It is generally accepted that trading and investing are subject to capital gains tax, whereas more routinely profitable endeavours like mining and staking are subject to income tax.

However, taxes might be somewhat different depending on your location. For instance, residents of Denmark are subject to a capital gains tax of 42%. On the other hand, a quick flight away in Switzerland, no such tax is levied.

Working with an accountant who can clarify your responsibilities is helpful because of the many subtleties of taxation crypto activity.

Crypto tax specialists have specialised education and training that allows them to distinguish between trading and staking to determine tax liability.

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What Are The Services We Offer?

HMRC Tax Investigations Advice

Tax audits and inspections can be confusing and unpleasant, so unless you are assured of your situation, get expert assistance as soon as a tax probe begins.

We can assist you if you are experiencing difficulty paying HMRC contributions or need help dealing with HMRC concerns involving VAT, PAYE, self-assessment, or corporation tax concerns.

Better still, we can ensure that you are never subjected to an HMRC tax inquiry in the first place.

Personal Tax Services

Our company offers relevant tax services for a myriad of tax issues to assist you in handling your personal tax affairs.

Often, the personal and professional lives of those making decisions within a company are inherently entwined. As part of our tax services, we strive to help you achieve your short-term and long-term objectives.

Our tax experts will aid in overseeing your money, establishing your family’s wealth, and preventing avoidable personal tax obligations.

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Sole Trader Services

Never before has it been simpler to service your knowledge to organisations, whether you are an IT consultant, a business analyst, an architect, or a surveyor, from any location in the world.

Working independently as a sole trader and a non-limited entity means the business is centred around you.

Keeping track of your finances is a challenging and time-consuming task for those with little to no experience in accounting. In the current landscape of increased compliance and regulations, it is vital that your books and accounts be up to date and correct.

R & D Tax Relief Advice

The United Kingdom’s Research and Development (R&D) tax exemption is among the most productive and lucrative in the world. A company’s tax payment can be significantly lowered or repaid by claiming government-backed relief.

However, many qualified businesses do not make a claim, either because they are uninformed of the assistance or because it looks too complicated or unsuitable for their organisation.

Here at Pearl Lemon Accountants, we can help you file for that.

Tax Planning Services

Corporate tax policies are complex and constantly changing. Strategic tax planning is essential for lowering your company’s tax liability.

Our tax professionals are highly qualified, business-minded, and skilled in lowering tax costs, so you can rest assured as you are in capable hands.

Pearl Lemon Accountants provides a comprehensive corporate tax compliance service to ensure that your company is tax-efficiently structured and that your corporate tax liabilities are mitigated.

Just click here to see our other offers if you need more services.

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FAQs

It depends on the type and volume of crypto trades you engage in.

If you’ve made a lot of money, crossed the line between investor and trader, been audited (eep!), or put money into one or more mysterious cryptocurrency projects, then the answer is yes.

More complicated scenarios call for the expertise of a crypto accountant or crypto CPA. When the financial and legal stakes are high, it is always best to consult with professionals.

If, on the other hand, your investment and trading are more low-key yet still high volume, a good accountant and crypto tax software will do the trick.

Cryptocurrencies are taxed in the same way that equities and precious metals are. To calculate the capital gain (or loss) from each taxable crypto event, you’ll need to keep track of the event date, purchase price, sale price, and transaction costs.

A tax professional should be able to look at your financial records and determine which occurrences are taxable and which are not.

According to Laura Walter, founder of Crypto Tax Girl, the taxing authorities started scrutinising bitcoin transactions more closely in 2018.

She cautions that this “may not be the year you’ll get away with it” if you haven’t reported your cryptocurrency holdings on your tax returns in the past. 

This might be a daunting process for seasoned traders who have made hundreds or thousands of deals over the years.

We will be more than happy to answer any questions you may have. If you wish, you can be as involved as you like. Just talk to us, and we’ll answer right away.

At Pearl Lemon Accountants, we know that a company can’t get all of the benefits of using our accounting services from a general service plan. Every service you choose for your business or account can be tailor-made just for you.

Diversity and individuality are valued in every business we work in, so your financial statements will vary from others. Depending on which services you choose, our prices will change as well.

Get in touch with us today.

When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients. It's a win-win situation for everyone. Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.

So let our experts work for you, and you won't regret it even a bit.

Book a call today to get started.