With HMRC cracking down on taxing cryptocurrencies, it’s time to discover the tools that will make life easier for you when declaring crypto tax.
Crypto taxes are taxed depending on the level of activity. The most common form of taxation is Capital Gains Tax (CGT); however, if you conduct high levels of activity, similar to a business, you may have to pay Income Tax.
Whether you are a sole trader or a business, taxes are inevitable. But isn’t it nice to have the right tool to simplify the job? That is why we’ve collected the best crypto tax calculators in the UK. Here at TS Partners, our experts can help you every step of the way.
What Are Crypto Tax Calculators?
A crypto tax calculator is software that links your exchanges in the crypto market and will gather all your data. It will automatically use all the data it collects to link your cost bases to your sales. The software then calculates your gains or losses and creates a tax report based on the results.
Best Crypto Tax Calculators in the UK
There are plenty of crypto gains calculators available on the market. This list is compiled out of the best available.
Using a tax calculator for your cryptocurrencies will not only make it easier for us to help you, but it can also save you valuable time and money.
Koinly is the most popular software to calculate crypto taxes. It makes calculating your capital gains easy by using Share Pooling and follows HMRC’s guidelines. The software is available in over 20 countries, including the UK.
You can start using Koinly for free and only pay when you’re ready to generate reports. You must select one of their four pricing plans to generate tax reports:
- Essential Features: $0 – This plan doesn’t include tax reports.
- Newbie: $49 per tax year – Limited to 100 transactions.
- Hodler: $99 PTY – Limited to 1000 transactions.
- Trader: $179 PTY – More than 10,000 transactions.
How to Use Koinly
To start using the Koinly cryptocurrency taxes calculator, you must import your data from your crypto exchanges, wallets, and public addresses. You can use the platform to review your transactions and create tax reports which include: CGT, Income tax, margin trades, options and future trade suggestions, and audit logs. You can also export your reports to tax filing platforms that we utilise at TS Partners, such as Xero.
Recap is available in the UK and follows HMRC’s guidelines for taxing cryptocurrencies. The platform was launched in 2018 as a solution for the two co-founders suffering from crypto tax queries.
The software has a free plan available with unlimited transactions. However, like Koinly previously, you need to have a paid plan to generate tax reports:
- Launch Pad: £0 forever – No tax report generation
- Lift off: £120 per year – Tax reports generated but limited to 1,000 transactions
- Orbit: £240 per year – Limited to 5,000 transactions
- Moon: £400 per year – Up to 25,000 transactions
Tokentax goes beyond your average tax calculator. They support 18 countries, including the UK and are the leading crypto tax calculate and accounting company.
They are the first crypto tax software to use API or spreadsheet/CSV import. Even if the software doesn’t support your import, you can still upload an exchange file, and the company will handle it manually with no extra charges to your plan.
They offer several different price plans:
- Basic: $65 per tax year – Up to 500 transactions
- Premium: £199 per tax year – Up to 5,000 transactions
- Pro: $799 per tax year – Up to 20,000 transactions
- VIP: $2,500 per tax year – Up to 30,000 transactions and crypto accountant assisted
How to Use Tokentax
- Import all your cryptocurrency exchange trade history.
- Verify all your historical data has been imported correctly and that the tax calculations are accurate.
- Decide on an accounting method.
- Export your tax reports.
- Include your cryptocurrency taxes on your tax return.
Bitcoin.tax has been available since the 2019 tax year and offers a complete tax preparation service to UK customers.
Users can get tax preparations, advice from tax attorneys, CPAs and enrolled agents, and planning with a tax expert to complete and file their returns.
What Does Bitcoin.tax Offer?
- Understand crypto and be able to discuss it with you
- Assist in entering crypto trades into bitcoin.tax
- Assist in tracking and reporting missing or lost records
- Reconcile unmatched transactions
- Provide full-service tax preparation for all tax forms
- Provide tax planning and strategies to identify crypto and non-crypto savings
- Provide advice for wash-sales, airdrops, staking, margin trading, and other complex crypto transactions
How Does Bitcoin.tax Work?
All you need to do is import the details of all your crypto trades from one of the supported trading exchanges, add spending or donations from your wallet, any mined coins, and income you have received. Once all your data has been imported, the platform does the rest for you.
Like many of its competitors, Bitcoin.tax offers four pricing plans:
- Free: $0 – Up to 20 trading transactions
- Premium: $39.95 per tax year – Up to 1,000 trading transactions
- Premium Extra: $49.95 – Up to 5,000 trading transactions
- Deluxe: $59.95 – Up to 10,000 trading transactions
BittyTax offers a series of open-source tools to help you calculate crypto taxes in the UK. The main benefit of using this platform is user privacy and free calculations. The service offers three components: accounting, conversion, and price tool.
All you need to do is:
- Install the software on your computer
- Export and make a record of all your transactions on a spreadsheet or CSV file
- Import the file to the software to create a report.
The accuracy of the report will depend on the data provided. Every report has four sections: Audit, Tax report per year, and two appendixes (Price Data and Current Holdings). The software supports different output formats and offers the latest and historic crypto prices and foreign currencies.
Mycryptotax takes care of everything, including dealing with HMRC, which saves you time and stress.
The platform will help you understand cryptocurrency tax implications in the UK and aims to remove any uncertainty from compliance and tax reporting to HMRC.
How Does Mycryptotax Work?
- Book a free consultation
- Complete the form and provide the required documentation
- The company will file your tax form for you
Like its competitors, the platform also has four pricing plans on offer:
- Starter: £497 per tax year – 5 exchanges and up to 500 transactions, gain up to £50k
- Standard: £747 per tax year – 10 exchanges, 1,000 transactions, and gain up to £100k
- Premier: £1497 per tax year – 15 exchanges, 5,000 transactions, and gain up to £250k
- Professional: Custom pricing – 15+ exchanges, 5,000+ transactions, and gain over £250k
Any crypto trader in the UK who does not disclose gains could face a 20% capital gains tax, plus any interests, and fines of up to 200% of any taxes due. Tax evasion can also lead to criminal charges and prison sentences.
Avoid any penalties and criminal charges by using any software we mention in this article. Give TS Partners a call to ask for our expert advice and find out how we can help you with your crypto tax calculations and self-assessment.
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