A client approached us with a mix of traditional employment income and significant cryptocurrency activity. On top of trading, they were paid in crypto for providing freelance services in content creation. They had already used specialist crypto tax software but were concerned about its accuracy and wanted our expert review before submitting their self-assessment.
Two challenges stood out:
1. Tax treatment: We needed to review each type of crypto activity - trading, income from content creation, and other transactions - to determine the correct tax treatment.
2. Software accuracy: Specialist crypto tax software is a great tool but not always perfect. Errors can arise from:
o Missing or misclassified transactions
o Inaccurate token pricing
o Unmatched deposits and withdrawals
o Complex DeFi transactions the software can’t handle automatically
The client wanted our review to add value beyond what the software alone could provide.
As part of our review service, we:
• Reviewed all crypto data in the software;
• Analysed each type of crypto activity to confirm the correct tax position;
• Checked largest gains, losses and problem areas;
• Reconciled missing costs, unmatched deposits, and withdrawals
• Reviewed DeFi activity manually where the software struggled;
Following our review service, we were able to provide the client with a more accurate tax report to ensure they didn’t overstate or understate their liabilities. We then prepared their self-assessment tax return to report these liabilities to HMRC.
Our review gave the client assurance they couldn’t get from software alone. By reviewing each type of activity and correcting key errors, we ensured their crypto tax position was accurate and HMRC-compliant, giving them peace of mind when filing their return.
If this case sounds familiar please do get in touch.
