Mr A had been investing in crypto for a few years and things had gradually grown. What started as a bit of buying and selling developed into a much more complex portfolio, involving trading across multiple exchanges, moving coins between wallets, swapping tokens, and earning staking rewards.
When the Self-Assessment deadline came around, he realised he had no clear way of working out what he actually owed and the transaction history was a mess.
Crypto tax isn’t just about when you cash out into pounds. Token-to-token swaps are taxable, staking rewards can count as income, and transfers between wallets can easily be mistaken for “disposals” if the records aren’t handled properly.
Mr A’s biggest worry was getting the figures wrong and ending up with a HMRC problem later down the line. He also didn’t want to overpay tax just because the calculations were unclear.
We pulled together his exchange and wallet data and rebuilt the position properly.
Mr A’s Self-Assessment return was filed with the correct crypto figures, backed up by proper calculations. Any allowable losses were also picked up, meaning he didn’t pay more tax than he needed to.
Mr A got peace of mind that everything was reported correctly and HMRC-compliantly. He also came away with a much clearer understanding of how crypto is taxed and what records he needs to keep going forward.
If this is a situation you are in or you have any queries do not hesitate to contact us enquiries@etctax.co.uk
