Ultimate Guide to Cryptocurrency Tax Deadline in the UK!
If you are reading this in the United Kingdom and you made money from cryptocurrency, it's now time to let the government know about it and perhaps even pay taxes. In doing so there are UK cryptocurrency rules that one should be aware of before any cryptocurrency tax deadline.
Here is how it works:
Tax Year
The tax year does not run from a calendar year in the United Kingdom. It runs from 6th April to 5th April in the following year. For example, the tax year 2023-2024 will start on the 6th April 2023 and end on the 5th April 2024.
Tax Filing
You have until January 31st afterward of the tax year to have all your records in an organized manner and finally file your tax after preparing. In this regard, for the 2024-2025 tax year, you must have filed your tax return not later than January 30, 2025.
What Should You Do?
You will have to fill up a self-assessment tax return form. That is more or less you confessing to the government about the amount of money you've been making, which of course also has to incorporate your finances made by the means of crypto.
Furthermore, you'll have to pay the imposed or decided figure of tax liability.
Latest Development
Well, it's always a good practice to check with HMRC, i.e., the government website or the expert on tax liabilities for a few alterations in rules, now and then.
Read more: Cleaner UK Crypto Regulations!
What Happens If You Do Not Declare Crypto Taxes?
What can potentially be the consequences in the event that you do not declare your taxes or the gains on crypto?
Penalties
Monetary added as fines to what you owe to the government for paying late or not paying at all.
If you are late in paying tax returns by 3 months, you will get a penalty of 100 GBP. Check out the list of reasonable excuses for late tax returns.
Interest
In the event of non-payment or late payment, interest is added to the money due.
Legal Issues
In the worst-case scenario, not reporting your crypto gains could be seen as tax evasion, which is illegal.
Missing Out on Loss-Related Benefits
There are scenarios when reporting all your crypto results may lead to money saving when you have actually incurred losses. Missing to file, in such cases, might make you miss the tax-saving benefits as well.
Get the Much-Needed Help with Crypto Taxes!!
Filing your cryptocurrency taxes can be very confusing. You need Crypto Accountants - the specialists in cryptocurrency and tax laws.
What do we do?
We can figure out how much tax you need to pay.
We might know about ways to legally pay less tax.
We can explain which of your crypto activities might not be taxed.
Help with the Cryptocurrency Tax Deadline
If you are doubtful regarding your crypto taxes, it would be wise to consult The Crypto Accountants!!! We ensure that you acquire expert advice that will save you possibly more in meeting all the laid-down rules.
Remember! Dealing with taxes can get intimidating really quickly, and it is best to do it right to avoid any trouble that may occur in the future.
Disclaimer: All the information in this blog is for educational purposes only and subject to changes as per the government policies. Please talk to a Crypto Accountant before making any decisions.