🧡 THREAD on how to prepare your Crypto Taxes πŸ‡¬πŸ‡§

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 πŸ”₯
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 πŸ‡¬πŸ‡§πŸ˜€)

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? πŸ”₯😱

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

β€’ β€’ β€’

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More from @Thesecretinves2

12 Jan
cryptotaxhelp.co.uk πŸ‡¬πŸ‡§

Below are 5 things to consider when assessing your CGT liability on your cryptocurrency Investment.
1 Make use of the CGT allowance

Every individual has an annual CGT allowance which currently lets them make gains of up to Β£12.3k free of tax (Fy20-21). If unused, the allowance cannot be carried forward into the next tax year, so it is advisable to use this tax-free allowance
2 Make use of losses

It might be wise to sell some assets at a loss if the overall gain in the tax year exceeds the annual allowance. Gains and losses established in the same tax year must be offset against each other, so will reduce the amount of gain that is subject to tax.
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24 Aug 21
Here is one I have been asked a lot lately

You can only claim tax relief for foreign travel paid for through your business if the trip has been wholly, exclusively and necessarily for the purpose of doing your job.

There are no exceptions to these rigid rules:

The trip must be taken wholly, exclusively and necessarily in order to do your job;
Any other related expenses claimed must be incurred wholly, exclusively and necessarily in order to carry out your job.
When claiming overseas travel expenses, contractors / small business must be extremely careful about claiming foreign travel expenses and related expenses through the company.
Read 10 tweets
26 Feb 21
How to pay less tax There are lots of ways to reduce your tax bill legally, whether you're an employee or self-employed, a landlord, investor or pensioner.

Here are 30 simple tips and tricks that can help you cut your tax bill to put more pounds in your pocket. πŸ”₯
1. Check your tax code
Your tax code indicates how much tax HMRC will collect from your salary. You can find it on your payslip. Check your tax code each year, or after changing jobs, to make sure it's correct for your situation.
2. Claim tax credits
Tax credits provide extra money to those looking after children, disabled workers and other workers on low incomes. The two main types you can claim: working tax credits and child tax credits.
Read 25 tweets
24 Nov 20
Limited company v Sole Trader πŸ”₯THREADπŸ”₯

Advantages of a limited company structure

πŸ‘‰The most significant advantage for most people is limited liability, which means they are only responsible for business debts up to the value of their investments or what they guarantee
However, there are many additional benefits, including:

– Tax efficiency.
– Credibility and professional company image.
– Opportunities for raising capital.
– Can be one person or multiple people setting up.
– Perpetual succession.
– Protected company name.

There are also however a few disadvantages: πŸ€”

– Additional filing and reporting requirements.
– More complex accounting & taxation.
– Potentially higher admin & accountancy costs.
– Disclosing company information on public record, including details of directors and shareholders
Read 15 tweets

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