Steps
Before you begin, it's important to determine whether you owe taxes and the exact amount you need to pay. To simplify this process, you can use Moonscape to calculate your taxes for you. Moonscape helps you effortlessly calculate your tax obligations and guides you through completing the necessary self-assessment forms.
- Calculate Your Taxes Using Moonscape.app
- Report and Pay to HMRC
When it comes to filing your crypto taxes, you'll include them as part of your Self Assessment Tax Return. To provide clarity, here's a condensed guide on reporting crypto activities to HMRC:
- For crypto capital gains and losses, include them on your SA100 and Capital Gains Summary SA108.
- For crypto income, report it in Box 17 of your Self Assessment Tax Return (SA100).
You have the option to perform these tasks online through the Government Gateway service or opt for the traditional approach of filing through paper forms sent by post. Keep in mind that the deadline for postal Self Assessment Tax Returns is October 31, 2023.
Update 2023
In the Spring Budget of 2023, the Chancellor unveiled plans to modify the Self Assessment tax return forms. Notably, investors would be required to report crypto assets separately. However, there's no need to worry—these new reporting changes won't take effect until the 2024-2025 tax year.
Update 2024
The anticipated changes from the Spring Budget 2023 regarding separate reporting of crypto assets on tax returns have now been implemented for the tax year 2024-2025. This means from April 6, 2024, onwards, there will be a distinct section in the Self Assessment forms for reporting crypto activities.
You can also utilize capital losses to offset your gains. Remember, reporting these losses to HMRC is a prerequisite.
How to Report and Pay to HMRC
You have two main options for reporting and paying taxes to HMRC:
- Complete a Self Assessment tax return at the conclusion of the tax year.
- Use the Capital Gains Tax real-time service to promptly report your gains.
It's important to note that the amount of tax owed might differ if you're not a resident in the UK. Refer to this link for more information.
You can report your gains through a Self Assessment tax return during the tax year following the sale or disposal of an asset.
Upon submitting your return, HM Revenue and Customs (HMRC) will provide details regarding the owed amount, payment methods, and due date. You'll receive a letter or email containing a payment reference number beginning with 'x'.
Additionally, you can utilize the 'real time' Capital Gains Tax service for reporting.
For more information, you can explore the following resources: