Crypto Accountant UK - Expert Cryptocurrency Tax Advice
- Minimise crypto accounting complexity with a partner you can trust
- MMBA Crypto accountant’s specialist plays a crucial role in supporting cryptocurrency transactions in the UK
- Let’s decode your crypto tax challenges with our expert guidance
Home / Cryptocurrency Tax Accountant
For an accountant, cryptocurrency is – to say the least – a challenging area. For a non-accountant cryptocurrency is an absolute minefield.
Our crypto tax services are designed to help you navigate the complexities of cryptocurrency taxation and ensure compliance with UK tax laws.
Crypto offers investors the possibility of huge rewards, but that potential comes with huge risk, and we would always suggest that anyone thinking of getting involved engage the services of an experienced cryptocurrency accountant.
UK regulators are ahead of many jurisdictions, but even here, the regulation of cryptocurrency transactions has constantly lagged behind the innovations made in the industry, and the whole sector has a bit of a “wild west” reputation.
It is fair to say that fortunes have been made and fortunes have been lost in crypto, and there seems to be no sign that this will not continue long into the future. But venturing into the largely uncharted territories of crypto without the help of an experienced tax-efficient crypto tax advisor (UK) would be unwise.
MMBA Cryptocurrency Accountants
MMBA’s crypto accountants can provide the service to navigate your investment in the form of digital assets and currency, so that you can calculate your tax accurately and report correctly to your tax office. Our accountants are adept at managing your tax affairs to ensure you remain compliant and avoid any unplanned tax liabilities. With the passage of time, the blockchain industry has expanded, and cryptocurrency usage has increased, which has resulted in an increased demand for crypto accountants.
These blockchain financial advisors understand the new, complex, and unique challenges associated with this industry. They have expertise in tax regulations, auditing, reporting, and tax regulations related to the cryptocurrency space.
Responsibilities of MMBA’s Cryptocurrency Accountants
Because of cryptocurrency’s constantly evolving and complex nature, individuals and businesses involved in the crypto-space must hire knowledgeable, reliable, and experienced cryptocurrency tax accountant UK.
Taxation and Reporting
Making clients understand their tax responsibilities in terms of paying tax because of crypto, like tax provision, effective tax rate, deferred tax, income tax, etc.
Consultation
Providing advice on the best possible options related to taxation, accounting, and financial management within cryptocurrency.
Cryptocurrency Tracking
Using specialised software tools to analyze and track cryptocurrency transactions and market fluctuations to make the right decisions for accounting and tax purposes.
Compiling Financial Statements
Helping clients prepare financial statements to reflect their crypto holdings and transactions.
Audit
Conduct audits for clients having crypto-related business activities to ensure accuracy in financial reporting.
Cryptocurrency Investment Guidance
Guiding clients to invest in cryptocurrencies from a financial and tax perspective.
Book a call with a Crypto Accountant UK
MMBA team offers specialised crypto accounting services in the UK. Please get in touch with our cryptocurrency tax specialist for easy, affordable, and excellent crypto accounting services.
Why Choose MMBA as Your Crypto Accountant UK
It is fair to say that fortunes have been made and fortunes have been lost in crypto, and there seems to be no sign that this will not continue long into the future. But venturing into the largely uncharted territories of crypto without the help of an experienced tax-efficient UK crypto tax advisor would be unwise.
While different jurisdictions take a different view of cryptocurrency as a whole, from El Salvador and Cuba accepting Bitcoin as legal tender to China outlawing cryptocurrency transactions completely, one thing is certain: regardless of losses or fees, if anyone is making a profit, there will be a government wanting to tax it. And in a field where the regulatory landscape changes like the weather, you do need the help of a crypto tax accountant if you are going to navigate your way through the chaotic crypto seas.
As you would expect from an innovative accountancy firm, MMBA has crypto tax advisors and staff who have been studying this ever-changing financial product, so if you are looking for a crypto tax advisor (UK), we are the best people to call. We are based in Preston, London, Cambridge and Luton, and we have worked with many businesses and individuals from the United Kingdom. This is a new and rapidly developing financial environment, and you would be unwise to try to get too deeply involved without the support of an experienced cryptocurrency accountant.
UK regulation is developing rapidly, and it is important that your crypto tax advisors are completely up to date. Our team of crypto tax accountants are meticulous in their study of all the applicable regulations and guidelines so they are always completely across their brief.
Although there are inherent risks when operating in such a volatile field, with the help of a bitcoin accounting expert, cryptocurrency can prove to be a versatile addition to a financial portfolio. So far, they appear to be inflation-proof,f and their decentralised nature makes them immune to fluctuations in value which affect traditional currencies. Cryptocurrencies can also make transferring money internationally easier since they are, by their very nature, global.
Cryptocurrency is both a financial investment and a financial tool, and like any financial investment or financial tool, it is not, and can never be, entirely free of risk. That is why you need the support of a cryptocurrency accountant. UK customers are used to investing in well-run and well-regulated markets. Cryptocurrency is not quite as civilised an environment, and it is full of traps for the unwary. Our expert team of crypto tax advisors has the experience to spot the pitfalls before you fall into them and make sure that you are always operating within the applicable regulations.
By choosing MMBA as their crypto accountant, UK customers can gain access to the best crypto tax advice & planning in the field. Together, you and your crypto tax advisor (UK) can explore the array of cryptocurrencies that are out there and find the one that most effectively meets your financial needs. So if you are looking for a crypto tax accountant in the UK, look no further. MMBA is the only crypto tax accountant you will ever need.
Meet Our Crypto Audit Expert - Waqqas Memon, BSc, FCCA
At MMBA Accountants, when it comes to cryptocurrency and digital asset taxation, our Director Waqqas Memon leads the way. He holds a BSc degree and FCCA qualification, and brings with him nine years of post-qualification experience, including seven years at top 10 accountancy firms.
Since joining MMBA in 2017, Waqqas has worked closely with crypto investors and traders, helping them navigate the often complex and evolving tax landscape around digital assets, NFTs, and blockchain-based income.
MMBA serves two main client segments:
- Crypto investors and traders, who benefit from Waqqas’s deep industry knowledge and personalised tax strategies
- Corporate clients, whom we assist with audit, financial reporting, and audit readiness. Our corporate portfolio includes well-known names such as Coin Bureau and Wirex.
Waqqas is also regularly engaged in consultancy projects focused on improving clients’ accounting systems, helping them streamline operations and ensure long-term compliance.
If you’re looking for reliable, forward-thinking advice on crypto taxation or digital asset accounting, Waqqas Memon brings clarity, strategy, and confidence to your financial journey.
Understanding Cryptocurrency Taxation
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that employs cryptography for security, making it difficult to counterfeit or double-spend. Unlike traditional currencies, cryptocurrencies are decentralised and operate on technology called blockchain, which is a distributed ledger enforced by a network of computers. This decentralisation means that cryptocurrencies are not controlled by any central authority, such as a government or financial institution.
In the UK, HMRC refers to cryptocurrency as “crypto” or “crypto assets.” This terminology encompasses not only traditional cryptocurrencies like Bitcoin (BTC), Tether (USDT), Binance Coin (BNB) and Ethereum (ETH) but also utility tokens, which provide access to a specific product or service, and security tokens, which represent ownership in an asset or company. Cryptocurrencies can be used for a variety of purposes, including trading, investing, and purchasing goods and services online.
How is Cryptocurrency Taxed?
Tax laws are made by a continuously evolving process. To know how cryptocurrency is taxed, one must consult a qualified tax professional or accountant. In this way, one can get up-to-date and accurate information. However, general tax and national insurance rules are commonly applicable almost all the time.
For capital gains tax purposes, cryptocurrency transactions are classified as investment activities, and any gains must be assessed for tax implications.
In the UK, cryptocurrency is generally subject to CGT, where the tax rate depends on the duration of the trade and the period one held the asset before selling (short-term vs. long-term capital gains).
Capital Gains and Cryptocurrency
Capital gains are a profit from selling an investment or a property. Crypto is most commonly used as an investment, so crypto gains are typically subject to capital gains tax.
Capital gains taxes are levied on earnings made from the sale of assets. The tax is computed by calculating the difference between the asset’s sale and acquisition price. If someone is buying, selling, or holding cryptocurrency in their account, they are considered to be undertaking investment activity and are subject to capital gains tax. So, disposing of crypto assets will also result in a taxable event.
Calculating Capital Gains Tax on Crypto
Calculating CGT on crypto can be complex. It requires determining the cost basis of your cryptocurrency and calculating the gains made when you sell or dispose of it. Accurate record-keeping of your transactions and seeking professional advice are crucial for ensuring precise tax calculations to comply with UK tax laws.
What About Undeclared Gains on Crypto Assets?
Cryptocurrencies are taxable assets, and any gains realised from their usage are subject to taxation. Undeclared gains mean some profit from crypto investment that has not been reported to the regulatory body. It’s essential to pay taxes; otherwise, you have to face the legal and financial consequences. It can lead to fines, penalties, or even legal action.
Income Tax
Income tax for a specific tax year is a tax the government imposes on the income individuals and businesses generate within their jurisdiction. If you gain any income from cryptocurrency, you may owe taxes on the proceeds.
Income Tax and Cryptocurrency
In some cases, crypto trading activities may be considered as income rather than capital gains. Such a case usually applies to individuals or businesses engaged in frequent and substantial trading. Income tax applies to the profits made from such activities.
Tax Rates and Reporting Income
Income tax rates vary depending on the total income earned. It is essential to report your crypto trading income accurately and pay income tax accordingly. Based on the information provided by you on the self-assessment tax returns, you’ll be informed about the amount of tax you must pay. Failure to do so can result in penalties and legal issues. Seek professional advice from MMBA legal accountants to ensure compliance with income tax regulations.
Tax on Crypto Asset Mining
Crypto Miners have to pay taxes when they get cryptocurrency from performing mining activities and when they sell or exchange reward tokens. Tax Laws are complex in the UK and subject to change over time; therefore, one should seek advice from a tax professional with hands-on experience like the MMBA crypto team.
Cryptocurrency Tax Obligations
Filing a Self Assessment Tax Return
If you are a UK resident and have made gains from cryptocurrency transactions, you may need to file a self-assessment tax return. HMRC considers cryptocurrency to be a chargeable asset, meaning that any gains made from buying, selling, or trading cryptocurrency are typically subject to capital gains tax. This includes activities such as selling crypto for fiat currency, exchanging one crypto for another, or using crypto to purchase goods and services.
To comply with HMRC regulations, you must report your crypto gains on your self-assessment tax return. This involves calculating the capital gains from your crypto transactions and including this information in your tax return. It is crucial to meet the filing deadline to avoid penalties and interest charges. Accurate record-keeping of all your crypto transactions, including dates, amounts, and values, is essential for this process.
Cryptocurrency Tax Planning and Optimization
As a cryptocurrency investor or trader, understanding your tax obligations and planning accordingly can help you minimise your tax liability.
Here are some strategies to optimise your crypto tax position:
- Accurate Record-Keeping: Maintain detailed records of all your crypto transactions, including the dates, amounts, and values at the time of each transaction. This information is vital for calculating your capital gains and losses accurately.
- Use a Crypto Tax Calculator: Consider using a crypto tax calculator like Koinly or specialised software like Xero, QuickBooks, or for crypto tax tracking. to help you determine your gains and losses. These tools can simplify the process and ensure accuracy.
- Tax-Free Allowances: Take advantage of tax-free allowances, such as the annual exemption for capital gains tax. This can reduce the amount of tax you owe on your crypto gains.
- Offsetting Losses: If you have incurred losses from your crypto investments, you can offset these against your gains to reduce your overall tax liability. This can be particularly beneficial in volatile markets.
- Professional Advice: Seek guidance from a leading crypto tax accountant to ensure you are meeting your tax obligations and optimising your tax position. Professional advice can help you navigate the complexities of crypto taxation and take advantage of any available tax reliefs. By understanding your cryptocurrency tax obligations and implementing effective tax planning strategies, you can minimise your tax liability and ensure compliance with UK tax laws.
MMBA’s Services for Cryptocurrency Taxation
Tax laws are made by a continuously evolving process. To know how cryptocurrency is taxed, one must consult a qualified tax professional or accountant. In this way, one can get up-to-date and accurate information. However, general tax and national insurance rules are commonly applicable almost all the time.
In the UK, cryptocurrency is generally subject to capital gains tax (CGT), where the tax rate depends on the duration of the trade and the period one held the asset before selling (short-term vs. long-term capital gains).
Why Do I need to Pay Tax on Cryptocurrency in UK?
When you are into crypto trading, the market value of crypto gains and losses fluctuates. Taxes on cryptocurrency work the same way as they do for other assets.
Intricate activities in crypto trading are:
- Strategic buying of low-priced cryptocurrencies
- Selling them at higher prices.
- Analysis of Market Trends
- Data-driven Insights
- Advanced Trading Metrics
- Risk Mitigation
So, to keep a check on these activities, you need to monitor your crypto assets, determined through a thorough crypto tax audit.
Expertly Audited Crypto by Top Audit Firms
Crypto audit is of primary importance in the contemporary era because cryptocurrency, intangible assets, is a primary means of exchange nowadays. Also, in the United Kingdom (UK), cryptocurrency adoption is quickly increasing, showing a stronger demand for crypto audit firms.
Crypto tax audit is an important aspect of crypto trading because crypto transactions are subject to taxes in England. However, it is not a simple task. The real task is to deal with the complexities of financial statements because of the nature of cryptocurrencies, i.e. Bitcoin and Ethereum, which are primarily used in the three crypto processes:
- Trading
- Mining
- Staking
However, when it comes to tax, the following crypto methods are liable to tax:
- Crypto Sales
- Crypto Conversions
- Crypto Payments
- Crypto Income
Crypto audit companies, such as MMBA Accountants in Preston, possess the expertise and knowledge to deal with the intricacies of auditing your crypto financial statements. An audited crypto saves you from financial losses and hefty penalties. Hence, an audited crypto, by a competent MMBA auditor, paves the way to financial success.
Leading Crypto Audit Solutions by MMBA in the UK
MMBA helps navigate cryptocurrency successfully. Be it buying and selling of crypto, mining and validating crypto, inheriting crypto, running a mining business or understanding crypto financial statements.
It is important to have a credible auditing firm for all audited crypto matters. The auditors at MMBA possess years of experience to effectively perform crypto tax audits. In short, MMBA London Accountants maximises the crypto trading potential with specialised accountancy.
MMBA’s Crypto Accounting Resources and Knowledge Base
The MMBA Accountant offers a fantastic opportunity to stay updated with the most recent news and guidance.
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MMBA FAQs on Crypto Accounting
How does crypto relate to accounting?
Cryptocurrencies are closely related to accounting. They are recorded as intangible assets of cost. Accounting is required for recording transactions, valuation, financial reporting, taxation, regulatory compliance, auditing, internal controls and security, investment management, token offerings, etc.
How do you pay capital gains tax on crypto?
Calculating capital gains tax on crypto can be complex. It requires determining the cost basis of your cryptocurrency and calculating the gains made when you sell or dispose of it. Accurate record-keeping of your transactions and seeking professional advice are crucial for ensuring precise tax calculations.
Is cryptocurrency legal in the UK?
Yes, cryptocurrency is legal in the UK.
What kind of tax am I expected to pay on my cryptocurrency?
You may have to pay different taxes owed and taxes on your crypto depending on your situation and activities. However, some common types of taxes are mainly applicable to your crypto. These are Income Tax, Capital Gains Tax, Wealth Tax, Inheritance Tax, Trading and Business Taxes, etc.
What is one common misunderstanding about crypto from a tax angle?
The most common misunderstanding about crypto is that people think that it saves money that can be treated like cash, but on the contrary, it is like an investment or asset.
Do I need an accountant for cryptocurrency?
Yes, it is essential to take the services of an accountant for cryptocurrency. An accountant can provide you with personal advice tailored to your specific situation.
What happens if I don't file crypto on taxes?
HMRC is becoming more and more strict on crypto. Therefore, it is recommended to file your crypto taxes on time; failure to do so could lead to penalties and interest on liabilities. This can be achieved by finding yourself a cryptocurrency accountant in the UK or your relevant country.
Do you have to report every crypto transaction on taxes?
You will only have to report crypto transactions you have sold and declare the profit/loss made on those. You will also have to report gains/losses made through mining, interest, airdrops, and staking. It is best to speak to a UK crypto tax advisor to cover this in more detail.