Crypto Currencies is a grey area, and whether you mine them , accept them in your business , want to accept them or trade them, we can help you. Right now there are 1000’s of crypto currencies in the market, with the widely used and accepted ones being Bitcoin, Litecoin, Ethereum, Ripple, Monero and many more. We at in2accounting , can help you get set up to accept crypto currencies as well as ensure it is accounted for correctly in accordance with HMRC and Accounting Policies. So contact us today to find out more.
We accept Bitcoin Payments for our accounting services. Get in touch with us to learn more.
Cryptocurrency Live Updates
What are Cryptocurrencies?
A cryptocurrency is a digital virtual currency that uses encryption technology (or cryptography) in its creation and to ensure the security of transactions involving its use. It is believed there are currently around 700 cryptocurrencies in circulation. Examples include Ripple, Litecoin, Dogecoin, BitShares, Nxt, Peercoin, FedoraCoin, Primecoin, Auroracoin, Quark and the best known of all—Bitcoin
Bitcoin was launched in January 2009. It was conceived as a purely peer-to-peer version of electronic cash. It is a privately developed, internet-based currency that requires no intermediaries (such as banks) for the processing of payments. Its supply is not controlled by any central bank, but it is fixed. The total number of Bitcoins is planned to be 21,000,000 (which is expected to be reached by around 2040).Start NowContact Us
UK TAX, HMRC AND CRYPTOCURRENCIES?
HMRC considers that Cryptocurrencies have a unique identity and cannot therefore be directly compared to any other form of investment activity or payment mechanism’.
HMRC also requires the tax treatment of any transaction involving the use of cryptocurrencies needs to be looked at on a case-by-case basis taking into account the specific facts.Start NowContact Us
Corporation Tax and Cryptocurrency?
Transactions that are subject to (direct) tax (such as a sale or disposal made for Bitcoins) need to be analysed in the same way as any other transaction.
The profits or losses on Exchange Movements between currencies are taxable and the general rules on foreign exchange and loan relationships apply.
The profits and losses Crypto Transactions would be reflected in accounts and taxable under normal Corporation Tax rules.
Please contact us for further guidance.Start NowContact Us
Capital Gains Tax and Cryptocurrency – CGT?
If a profit or loss on a cryptocurrency transaction IS NOT recorded within trading profits – it will be liable to charge under CGT rules.
Gains and losses incurred on cryptocurrencies are chargeable or allowable for CGT if they accrue to an individual or, for Company on chargeable gains.Start NowContact Us
VAT and Cryptocurrency?
VAT on gains and losses: Gains and losses on Cryptocurrency transactions are exempt from VAT.
VAT on charges: Any charges related to the exchange. sale, purchase or completion of cryptocurrency transactions are exempt from VAT.
VAT on purchase of goods or services using Cryptocurrency: VAT should be recorded in the same way as if the local currency was being used to purchase these goods or services.Start NowContact Us
Cryptocurrency Live Updates
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