The implications for your due taxes would be significant, depending upon the choice you make (either FIFO or LIFO methods). So I would suggest you to try both FIFO and LIFO calculators, which will help you decide which method is better for you. You can download it from the Eloquens.com marketplace.
Bitcoin Cryptocurrency FIFO Gain Calculator for Taxation
https://www.eloquens.com/tool/3MdIAv/engineering/cryptocurrency-excel-templates/bitcoin-cryptocurrency-fifo-gain-calculator-for-taxation
Bitcoin Cryptocurrency LIFO (Last In First Out) Gain Calculator for Taxation https://www.eloquens.com/tool/3B4lfy9X/engineering/cryptocurrency-excel-templates/bitcoin-cryptocurrency-lifo-last-in-first-out-gain-calculator-for-taxation
I hope that after comparing the gains using the FIFO and LIFO methods, you will be in a better position to minimize your tax implications, save time, and maximize your gains.
------------------------------
I love Bitcoin
1NYqYEUGY7h1cbKVkW12wmFfcZMnv6DEa7
Topic: Tax UK (Read 1088 times)
In the UK, if the cryptocurrency has gained in capital value since you acquired it, you pay capital gains tax. To be liable for income tax on the cryptocurrency, you need to have had the cryptocurrency paid to you as income.
As i know, if you live in the UK , while working here you should pay tax at UK rates which on your salary would be 20% after n.I deductions and personal allowance . If you are here only for a short time , less than six months I think you would not pay UK tax but would be subject to that of your own country.
Technically, you create a taxable event each time you make a trade.
Aye. I've been pondering this. I'd love to get rid of all my fork coins but the idea of having to wade through taxation shite because of it is more than I can be bothered with at present. I'll either have to swallow it or wait until I can be bothered, by which point they may be worthless which is still fine with me.
I've read quite a few people though who've consulted accountants in the UK whose accountants reckoned capital gains was only due when everything is converted to GBP. Others are adamant that any trade for any crypto is taxable.
It seems impossible to know who is right or wrong as it's case by case.
In the UK you are obliged to pay tax on gains you make from trading cryptographic currency in the same way you pay trading tradition stocks.
Technically, you create a taxable event each time you make a trade.You have an allowance of gains you are allowed to make before tax is due and if you’re working then the chances are you already have used that allowance.If you spend your profits and don’t make a provision for this and the tax man comes knocking then you could find yourself in a sticky situation.
Technically, you create a taxable event each time you make a trade.You have an allowance of gains you are allowed to make before tax is due and if you’re working then the chances are you already have used that allowance.If you spend your profits and don’t make a provision for this and the tax man comes knocking then you could find yourself in a sticky situation.
Hello,
Has anyone withdrawn BTC in the UK? If so do you need to pay tax on it as it currently seems unclear.
Has anyone withdrawn BTC in the UK? If so do you need to pay tax on it as it currently seems unclear.
You will not be able to work with taxes if you do not carry out a very large amount of transactions. Taxes are not required from users in Uk and Eu. If it is too big, it will not be a problem again. There are tax applications for companies.
Hello,
Has anyone withdrawn BTC in the UK? If so do you need to pay tax on it as it currently seems unclear.
Has anyone withdrawn BTC in the UK? If so do you need to pay tax on it as it currently seems unclear.
I think taxation rules are the same with any other countries and same for other earnings that you are getting. once you earn something no matter what the source it you need to put it on your tax forms and pay applicable taxes for it. I am just not sure on how to compute your capital for that earnings.
Hey bitcoins are taxable its same for UK or India.
I would like to tell you about my personal experience.
First of all.. Being taxable doesn't affect you if tou do are buying bitcoins that aren't that valuable.
First of all its like if you are buying bitcoins and earning through it..it hardly makes a change in your usual schedule.but if your earnings exceeds 2.5 lakhs then ypu need to pay taxes.
Since whatever you earn will be shown in your bank account in a similar way.. bitcoins aren't taxable but Whatever you earn from it are. Also..all other.. taxes are hidden in the sense you won't know they will exist but when you will sell ypur bitcoins its rate will be lower than the buy rate..there are 2 possible reasons for that...1.comission taken by the offline wallet through which you choosed to sell
2. Some minor taxes according to your amount.
I think you will get a fair idea of how bitcoins and taxes work.. its.more like its your earnings that are taxable.
I would like to tell you about my personal experience.
First of all.. Being taxable doesn't affect you if tou do are buying bitcoins that aren't that valuable.
First of all its like if you are buying bitcoins and earning through it..it hardly makes a change in your usual schedule.but if your earnings exceeds 2.5 lakhs then ypu need to pay taxes.
Since whatever you earn will be shown in your bank account in a similar way.. bitcoins aren't taxable but Whatever you earn from it are. Also..all other.. taxes are hidden in the sense you won't know they will exist but when you will sell ypur bitcoins its rate will be lower than the buy rate..there are 2 possible reasons for that...1.comission taken by the offline wallet through which you choosed to sell
2. Some minor taxes according to your amount.
I think you will get a fair idea of how bitcoins and taxes work.. its.more like its your earnings that are taxable.
The key word is "trading." If one convert £ to $ in order to go on holiday, that is not trading, thus no tax. Converting BTC to £ is the same. When you do it regularly in order to make profit via trading then it becomes another issue (gambling). Holding for long term has CGT as they think bitcoin is an investment. I see it as a currency and just because the currency values goes up (deflationary) as opposed to fiat value going down (inflationary), tax cannot apply. If fiat £ were deflationary at 5% pa for 10 years, do you think the government will tax the increased value of £? NO. The best thing to do is carry on as normal and forget the taxman.
It doesn't really matter what us peons think. What matters is what They think. If a million quid of Bitcoin gains arrived in my bank account tomorrow I'm going to have to account for it and CGT it will likely be regardless of my own feelings.
Sell for cash a bit at a time. If you want to sell all in one go, move abroad.
Yes this is another bizarre rule. a gambler can earn millions and pay zero tax, where as any regular hand to mouth person earning over £11k/year will need to pay tax... 
How many gamblers can "earn" millions? None. Gamblers do not "earn".
Gamblers can win money and pay tax when they spend it. Everybody pays the same tax rate when then spend money as a consumer. A person earning £1000 pa still pays the same tax as someone earning £1m.
You are talking about VAT. I am talking about income tax. "A person earning £1000 pa still pays the same tax as someone earning £1m."--> NOT true for income tax
You obviously do not understand how tax works, just like the other billions of derps on the planet. Income tax and national insurance are deducted from your wage/salary, not pay. Deduct and pay are two different words with its own definition. You can only pay each tax once. All taxes imposed on companies are added to the cost of goods and services. Learn accountancy, expenditure column. Suppose i sold you a book for £10. Costs or productions, operation, sales and profit = £4 per book. Total of income tax, national insurance, business rate, corporation tax, VAT, stupid regulations (stealth tax) and any other minor taxes = £6 per book. £4 + £6 = £10. Consumer marginal rate of tax is 60% payable by everyone regardless of earning. The same 60% - no progressive tax (myth).
Politicians and the financial elites DO NOT WANTS BILLIONS OF DERPS TO KNOW THIS. Learn and stop being brainwashed by the politicians and the media.
The problem with taxes is doesn't the government need to be able to prove that you indeed made such a profit in the first place in order to be able to collect tax? I mean if you didn't pay it then they would first need to audit you and secondly they would need to then determine you indeed are lying somehow and then if you hide your activity correctly you should not be able to get caught in which case taxes would be unnecessary. Is it a good thing to o though? Well, this post is for educational purposes only...
There's a million ways you can not pay tax. Everyone knows it's possible. Most people choose to pay it for the sake of a quiet life just in case. That's how it works.
I've known a couple of people who were not believed by the tax man even though they'd done nothing actually wrong. Their lives were comprehensively ruined. In that scenario I'd just bugger off abroad and not come back. Most don't have that option.
The tax situation is clear. You pay capital gains on your profit. You have an exemption of £11,300 ish. If your profit is below that you pay no tax. For tax reasons it's treated the same as foreign currency.
Some people say you should also be paying capital gains tax on your crypto only gains. Sod that.
There might also be a grey area over a full time trader paying income tax as that's a job rather than a capital gain. I haven't heard many mentions of that.
https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies
The above is their advisory which hasn't changed since 2014.
Some people say you should also be paying capital gains tax on your crypto only gains. Sod that.
There might also be a grey area over a full time trader paying income tax as that's a job rather than a capital gain. I haven't heard many mentions of that.
https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies
The above is their advisory which hasn't changed since 2014.
The problem with taxes is doesn't the government need to be able to prove that you indeed made such a profit in the first place in order to be able to collect tax? I mean if you didn't pay it then they would first need to audit you and secondly they would need to then determine you indeed are lying somehow and then if you hide your activity correctly you should not be able to get caught in which case taxes would be unnecessary. Is it a good thing to o though? Well, this post is for educational purposes only...
The key word is "trading." If one convert £ to $ in order to go on holiday, that is not trading, thus no tax. Converting BTC to £ is the same. When you do it regularly in order to make profit via trading then it becomes another issue (gambling). Holding for long term has CGT as they think bitcoin is an investment. I see it as a currency and just because the currency values goes up (deflationary) as opposed to fiat value going down (inflationary), tax cannot apply. If fiat £ were deflationary at 5% pa for 10 years, do you think the government will tax the increased value of £? NO. The best thing to do is carry on as normal and forget the taxman.
It doesn't really matter what us peons think. What matters is what They think. If a million quid of Bitcoin gains arrived in my bank account tomorrow I'm going to have to account for it and CGT it will likely be regardless of my own feelings.
They are classified as gambling and trading with btc is no different. Stockmarket and/or forex trader are companies, not individuals. Remember with CGT one can offset losses against their gains. Gambling has no tax because gambling losses are not, obviously, offset against wins.
There are plenty of individuals who are professional full time traders.
The problem with all of this is that it's too open to interpretation. I kind of get the impression that Bitcoiners are obligated to prepare and present a certain angle to the HMRC and hope that they swallow it. It seems unnecessarily opaque.
This article backs you up but again it's their opinion rather than anything definitive - https://www.butler-co.co.uk/articles/BitcoinTrading.pdf
The key word is "trading." If one convert £ to $ in order to go on holiday, that is not trading, thus no tax. Converting BTC to £ is the same. When you do it regularly in order to make profit via trading then it becomes another issue (gambling). Holding for long term has CGT as they think bitcoin is an investment. I see it as a currency and just because the currency values goes up (deflationary) as opposed to fiat value going down (inflationary), tax cannot apply. If fiat £ were deflationary at 5% pa for 10 years, do you think the government will tax the increased value of £? NO. The best thing to do is carry on as normal and forget the taxman.
Yes this is another bizarre rule. a gambler can earn millions and pay zero tax, where as any regular hand to mouth person earning over £11k/year will need to pay tax...
How many gamblers can "earn" millions? None. Gamblers do not "earn".
Gamblers can win money and pay tax when they spend it. Everybody pays the same tax rate when then spend money as a consumer. A person earning £1000 pa still pays the same tax as someone earning £1m.
You are talking about VAT. I am talking about income tax. "A person earning £1000 pa still pays the same tax as someone earning £1m."--> NOT true for income tax
I have some friends from the high school who are living on the UK now and they are holding some bitcoins at the moment, everytime that they want to dump their coins they just use localbitcoins and sell all of their coins for cash in there.
You dont have to pass through a bank, it is very easy to sell your bitcoins through local bitcoins, because you can choose the best option that you want to sell them by.
That country is very strict, like the USA, but those who doesnt want to have problems with the law, just sell their bitcoins for fiat money
You dont have to pass through a bank, it is very easy to sell your bitcoins through local bitcoins, because you can choose the best option that you want to sell them by.
That country is very strict, like the USA, but those who doesnt want to have problems with the law, just sell their bitcoins for fiat money
If I do not cash out my bitcoin or liquidate my position, hence I do not have to worry about capital gain tax at all I believe.
Correct me if I am wrong.
Correct me if I am wrong.
Surely trading is gambling. If I buy £1000 of a crypto currency or an ICO, who's to say that market won't drop or that ICO will run away?
It's not gauranteed money so therefore it's gambling? That's what I mean by it's not clear.
From my point of view buying into a crypto currency is no different to buying a scratch card or playing poker, there is always a good chance of loss.
It's not gauranteed money so therefore it's gambling? That's what I mean by it's not clear.
From my point of view buying into a crypto currency is no different to buying a scratch card or playing poker, there is always a good chance of loss.
They are classified as gambling and trading with btc is no different. Stockmarket and/or forex trader are companies, not individuals. Remember with CGT one can offset losses against their gains. Gambling has no tax because gambling losses are not, obviously, offset against wins.
There are plenty of individuals who are professional full time traders.
The problem with all of this is that it's too open to interpretation. I kind of get the impression that Bitcoiners are obligated to prepare and present a certain angle to the HMRC and hope that they swallow it. It seems unnecessarily opaque.
This article backs you up but again it's their opinion rather than anything definitive - https://www.butler-co.co.uk/articles/BitcoinTrading.pdf
Yes this is another bizarre rule. a gambler can earn millions and pay zero tax, where as any regular hand to mouth person earning over £11k/year will need to pay tax...
How many gamblers can "earn" millions? None. Gamblers do not "earn".
Gamblers can win money and pay tax when they spend it. Everybody pays the same tax rate when then spend money as a consumer. A person earning £1000 pa still pays the same tax as someone earning £1m.
Trading is regarded as gambling thus no tax payable. Unless the law changed.
I can't believe that every full time stock market or forex trader, and that's the closest square equivalent to crypto trading, out there is contentedly registered as a gambler and not paying a bean, but one thing I've gleaned from the people who've gone a bit deeper into this with various accountants is that no one appears to have a bleedin' clue.
Spread betting and binary trading I can believe. I don't buy it otherwise.
They are classified as gambling and trading with btc is no different. Stockmarket and/or forex trader are companies, not individuals. Remember with CGT one can offset losses against their gains. Gambling has no tax because gambling losses are not, obviously, offset against wins.
Yes this is another bizarre rule. a gambler can earn millions and pay zero tax, where as any regular hand to mouth person earning over £11k/year will need to pay tax...
Trading is regarded as gambling thus no tax payable. Unless the law changed.
I can't believe that every full time stock market or forex trader, and that's the closest square equivalent to crypto trading, out there is contentedly registered as a gambler and not paying a bean, but one thing I've gleaned from the people who've gone a bit deeper into this with various accountants is that no one appears to have a bleedin' clue.
Spread betting and binary trading I can believe. I don't buy it otherwise.
The tax situation is clear. You pay capital gains on your profit. You have an exemption of £11,300 ish. If your profit is below that you pay no tax. For tax reasons it's treated the same as foreign currency.
Some people say you should also be paying capital gains tax on your crypto only gains. Sod that.
There might also be a grey area over a full time trader paying income tax as that's a job rather than a capital gain. I haven't heard many mentions of that.
https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies
The above is their advisory which hasn't changed since 2014.
Some people say you should also be paying capital gains tax on your crypto only gains. Sod that.
There might also be a grey area over a full time trader paying income tax as that's a job rather than a capital gain. I haven't heard many mentions of that.
https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies
The above is their advisory which hasn't changed since 2014.
Trading is regarded as gambling thus no tax payable. Unless the law changed.
The tax situation is clear. You pay capital gains on your profit. You have an exemption of £11,300 ish. If your profit is below that you pay no tax. For tax reasons it's treated the same as foreign currency.
Some people say you should also be paying capital gains tax on your crypto only gains. Sod that.
There might also be a grey area over a full time trader paying income tax as that's a job rather than a capital gain. I haven't heard many mentions of that.
https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies
The above is their advisory which hasn't changed since 2014.
Some people say you should also be paying capital gains tax on your crypto only gains. Sod that.
There might also be a grey area over a full time trader paying income tax as that's a job rather than a capital gain. I haven't heard many mentions of that.
https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies
The above is their advisory which hasn't changed since 2014.
Hello,
Has anyone withdrawn BTC in the UK? If so do you need to pay tax on it as it currently seems unclear.
Has anyone withdrawn BTC in the UK? If so do you need to pay tax on it as it currently seems unclear.
Jump to: