Thread by @Thesecretinves2

🧵 THREAD on how to prepare your Crypto Taxes 🇬🇧

Now I know preparing your taxes can be daunting, I speak to many people who bury their head in the sand and only come up when there is no other option

This can be easy, with the right Accountant and support 🔥

Firstly speak to a knowledgeable Accountant in the space to ensure the advice you are getting is adequate and they know Crypto

Why should they know Crypto?

Its easy for someone to give incorrect Accounting advice when they do not know.

As Accountants we PREPARE but do not sign off your tax return, YOU DO.

The advice is just that, not gospel

Ensuring they know what they are talking about can give you the sense of security that what you are filing with HMRC is correct

DON'T go for the cheapest option

I know price is important to us all, but if you find someone cheap who simply agrees with what you say, the chances are they are not adding ANY Value

So in fact you are being ripped off. Get someone you feel comfortable with and ask them the questions you want to know.

Next your Accountant should advise you how to register.

To submit and file any self assessment you need to be registered with HMRC and have a UTR (Unique Tax reference)

tax returns are filed AFTER the relevant tax period

For example the 2021/22 tax year runs fro April 6th 21 to April 5th 22.

After April 22 get in touch with your Accountant to say you are ready to file. usually you will need your P60 from your employer first.

You Accountant (By this point i hope its me 🇬🇧😀)

Will then write to you and confirm the items they require to prepare the tax return.

Take your time preparing any of these items, most should be simple BUT

Crypto gains - Different Accountant work different ways but the best way to ensure accuracy and cost effectiveness for me is to involve software

I suggest @accointing
@koinly and Crypto Tax Calc are good alternates

Input your wallet addresses and voila

DO not pay yet

If yours does not look correct, have a look at the API setting and ensure things have the correct setting against them (Capita Gain, Income, Mining etc)

If it still looks wrong when reviewing start with the larger balances to find any larger errors.

If you are in $STRONG I would recommend @DuneAnalytics for help with this and exclude it from the above reports.

Dune gives brilliant readings and more accuracy for me on $STRONG Nodes

Once you are happy you have the records required add your Accountant as a team member, they should be more than happy to review these reading for you

Once you are both happy, pay for the relevant subscription.

This will then generate a tax report that your Accountant can use for the tax return.

Once all your info is in the return, before submitting you should be able to review a draft and see the likely tax bill you have

Now you are happy, just let you Number cruncher know you are happy to submit and they can send off to the world of HMRC

Happy? Not that hard was it? 🔥😱

Now arrange a call with me at cryptotaxhelp.co.uk