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“Bitcoin is a remarkable cryptographic achievement… The ability to create something which is not duplicable in the digital world has enormous value…Lot’s of people will build businesses on top of that.” - Eric Schmidt, Executive Chairman, Google.

As digital accountants, we understand cryptocurrency.

Llewellyns are modern digital accountants, and as a necessity, we are also fully on board with the cryptocurrency revolution that is currently taking traders of the world by storm. To this end we are fully equipped to help you ensure that you are not falling outside of tax laws and that you meet all the legal requirements when dealing with cryptocurrency gains.

If your current accountant doesn’t understand blockchain technology, cryptocurrency trading or mining, then get in touch so we can help. Alternatively, if you have made significant gains trading on the market, but don’t understand how to deal with the legalities and tax liabilities that come with it, we can take care of this for you.

We also understand that mining cryptocurrencies is a very profitiable enterprise. Not only this, but miners are operating a trade which falls under the same legislation as any other trade. We can minimise the tax liabilities of running a mining trade and ensure your profits are maximised.

Do I have to pay tax on crypto-currency ?

Absolutely. Trading digital assets is no different to other asset trading and is liable to capital gains tax. If you have been particularly successful at trading then the implications could also impact taxation on other income so it’s important that your accountant understands these regulations.

Additionaly, as a new and emerging market, there is a lot of concern from financial institutions and governments over the legality of crypto-currency, and fear about some of it’s inherent ‘anonymity’. We strongly believe that as a trading community it’s important for crypto traders to ensure they comply with the law and pay their tax. If it becomes seen as a way of avoiding tax, rest assured governments will crack down on crypto-currencies as an illegal practice and significantly undermine the value they hold. It would also be foolish to think that you could ‘get away with it’ and not declare your gains correctly, considering the many tools available to the HMRC and the options they have to track down tax cheats.

What about trading one cryptocurrency for another For example, can I swap my Bitcoins for Ethereum ?

When you exchange a crypto-currency you are liable for capital gains taxation. It doesn’t matter if you are exchanging to GBP/Sterling, or another crypto-currency, the same rules apply. For this reason it is important that accurate records of all crypto-trading are kept. This is bookkeeping and we can help you with this. There are many excellent ‘coin tracking’ tools that are available to keep track of your trading as well as help you make informed decisions within the market. These can be invaluable when it comes to making the calculations required to ensure you are paying the correct amount of tax.

I've mined some cryptocurrency.. now what ?

It’s important to understand that mining is a trade. The money you make is subject to taxation, so you can’t simply put it in your bank and start spending it. However, the equipment you use for mining, the electricity used and many other factors can be considered against your final profit to minimise your liabilities. Careful consideration should be made as to whether you’re trading as an individual and paying capital gains tax, or trading as a company and paying tax through PAYE. Just like any other business, an accountant who understands your trade is best placed to deal with this for you. That accountant, is us.

Llewellyns Limited - Wales' First Cryptocurrency Accountants

Contact us now on 02920 624 230, or use the Contact Us link above.