Top Crypto Tax Software in the UK
Crypto Tax Software: What Is It?
Crypto tax software is a program that helps you prepare taxes for your earnings on crypto assets. It allows you to calculate your profit and loss from cryptocurrency trading, as well as capital gains and losses and expense deductions.
In many cases, this type of software also includes a full crypto portfolio tracker and analysis tool to provide a centralized view of all your crypto holdings across multiple exchanges and wallets. Crypto tax software also makes it simple to calculate and file your crypto taxes.
Crypto Tax Regulations In the UK
Crypto regulations around the world are still in their infancy as more countries figure out how to deal with this emerging industry. Though, a common consensus has emerged among developed countries to heavily tax crypto earnings. The UK is one of them. However, it can be a tumultuous process to calculate tax on your crypto earnings. In this article, we explore the best crypto tax software in the United Kingdom.
How Is Crypto Tax Calculated In The UK?
Those who acquire, sell, or receive cryptocurrencies through a trade typically have to pay income tax. A “day trader” is someone who actively buys and sells crypto assets in order to make a profit in the short term.
However, when trading on their own account, people are unlikely to qualify as “traders” for income tax reasons and are more likely to fall under the capital gains tax scheme.
If you reach the trading level, your net gains will be liable to national insurance at rates of 12% and 2%, as well as income taxes of 20%, 40%, and 45%, depending on the tax band your income falls into.
Any earnings from cryptocurrency as income will be subject to income tax: In England, Wales, and Northern Ireland, tax rates range from 0% to 45%, while in Scotland, where there are two additional tax bands, the beginning rate is 19% and the intermediate rate is 21%.
Tax on Capital Income In United Kingdom: A Gist
Most of the time, anyone purchasing, holding, and disposing of cryptocurrencies on their own behalf is regarded as engaging in investing activity and is liable for capital gains tax.
When an individual’s total gains exceed the £12,300 yearly tax-free allowance, they are subject to capital gains tax. Gains that exceed this limit will be subject to a 20% tax rate on gains at the higher and additional tax rates, and a 10% tax up to the basic rate tax band.
Let’s explore some of the top crypto tax software in the UK for 2023,
Cryptiony
Best for traders , individuals and tax experts
For individuals, traders, and tax experts, Cryptiony offers cryptocurrency tax solutions. It enables users to export a bitcoin tax report, import all account transactions into a single wallet, and more. The business is headquartered in Poland and was established in 2021.
PROS and CONS
- They have an unbeatable price and provide up to 500 taxable events for free.
- The company is integrated with leading crypto exchanges like Binance, Kucoin, Coinbase, Kraken, and Bitstamp.
- They have a capable customer service
- Modern User Interface (UI)
- Easy to use
- Available in 2 only countries: the UK and Poland
Ledgible Crypto
A professional-cryptocurrency tax and accounting solution.
Ledgible is a bitcoin tax and accounting platform used mainly by professionals, businesses, and institutions as a professional-cryptocurrency tax and accounting solution.
They provide live support, SOC 1 & 2 Type 2 certification, and assistance for countless platforms and exchanges
- Ledgible Data offers businesses and institutions quick, scalable solutions in tax and accounting for cryptocurrencies, including integrations with secure banking systems and the enhancement of conventional financial reporting tools.
- The Ledgible tax platform offers a comprehensive platform with team and client administration portals, and connections with all professional tax solutions. They provide full 24/7 live assistance to manage client cryptocurrency returns.
- It simplifies enterprise and institutional cryptocurrency and digital asset accounting procedures.
- For the preparation of 1099s and tax forms, it helps to quickly assemble, standardize, and format crypto tax data.
Koinly
A Complete package tax reporting and cryptocurrency tracking.
Koinly was established in 2018 to help investors with tax reporting and cryptocurrency tracking. As of October 31, 2022, the crypto tax software system had filed 11,000 tax filings and had 250 million USD in money under management. Koinly assists in creating crypto tax reports for every country, including the US. Whether you are using interest-bearing crypto products poolside or mining cryptocurrency in the Alps, Koinly can produce a statement that details all of your crypto income.
- They provide various cost-based approaches like Spec ID, Average Cost, Share Pooling, FIFO, LIFO, and HIFO.
- Wallet-based or universal expense tracking is used to keep track of expenses in a common pool shared by all connected wallets or individually for each wallet.
- Koinly employs artificial intelligence to track initial expenses and find transfers between wallets.
Crypto Tax Calculator
A solution to your crypto tax nightmare
Shane and Tim Brunette co-founded CryptoTaxCalculator in 2018 which is based in Sydney, Australia. Their “remote-first” async culture includes team members from all across the world. Since its launch, they have expanded to serve tens of thousands of consumers in twenty different nations.
The aim of the Crypto Tax Calculator is to make it easy and clear to understand crypto tax obligations. Their tools make it simple and accurate to find, monitor, and arrange all of the cryptocurrency activity across hundreds of exchanges and blockchains. By offering transparent and secure records of cryptocurrency activity, they assist investors, traders, and accountants so they can unwind during tax season.
Source: https://coingape.com/best-crypto-tax-software-in-the-united-kingdom/