Current year crypto tax reporting is for UK individuals who need to include cryptoasset activity on a Self Assessment tax return.
Sat Tax may be able to help where your crypto records are complete enough to support the return and the position can be prepared on a reasonable and defensible basis.
A crypto tax return in the UK should not rely only on a software report. The figures need to make sense when compared with the records behind them. That is why Sat Tax reviews the available reports, supporting information and wider tax details before preparing the return.
What Current Year Crypto Tax Reporting May Include
This work may include:
- reviewing cryptoasset tax reports produced from the data available
- reviewing relevant supporting information provided by you
- preparing cryptoasset tax figures for the relevant tax year
- preparing your Self Assessment tax return
- preparing a written summary explaining the tax position, payment deadlines and next steps
- uploading the draft tax return and supporting documents securely for your review
- submitting the return to HMRC after your written approval and payment of any invoice due before submission
Why Records Are Reviewed First
The quality of the tax return depends on the quality of the records.
Cryptoasset activity may involve exchanges, wallets, staking, rewards, DeFi activity, transfers and historic acquisition costs. If important records are missing or incorrectly classified, the tax calculation may be wrong even where the report looks complete.
For that reason, Sat Tax does not treat every matter as ready to file straight away. The records need to support the position being reported.
If your records are incomplete, inconsistent or not ready for reporting, further review may be needed before a tax return can be prepared.
Crypto Tax Software and Koinly
Sat Tax uses crypto tax software, including Koinly, as part of its structured working method.
Software helps organise transaction data and produce tax reports. However, software can only work with the information it has been given.
If wallets, exchanges, transfers or classifications are missing or incorrect, the output may not be reliable. Sat Tax therefore reviews software reports in the context of the available records and the agreed scope of work.
What Is Not Included Unless Agreed
Current year crypto tax reporting does not automatically include:
- full reconstruction of historic cryptoasset activity
- forensic blockchain tracing
- transaction-by-transaction verification
- correction of incomplete records
- review of earlier tax years
- disclosure work for previously unreported tax years
- HMRC enquiry or compliance check work
- tax planning, investment advice or legal advice
If further work is needed, Sat Tax will explain the position and confirm any revised scope or fee basis in writing before carrying out additional work.
Fee Protection for a Crypto Tax Return UK
Where Sat Tax prepares and submits your tax return, access to Sat Tax’s fee protection arrangements may apply for qualifying HMRC compliance checks relating to that return.
Where the policy applies, it may cover Sat Tax’s professional fees for dealing with the HMRC check on your behalf, subject to the insurer’s terms, conditions, exclusions and acceptance of the claim.
It does not cover tax, interest or penalties.
Before Submission to HMRC
Before any tax return is submitted to HMRC, you will be asked to review the draft return, tax calculation, supporting documents and covering letter.
Sat Tax will only submit the return where:
- you have approved the return in writing
- any invoice due before submission has been paid in full
You remain responsible for confirming that the information is complete and accurate to the best of your knowledge and belief.
Getting Started
The first step is to complete the enquiry process so your circumstances, records and likely reporting position can be reviewed.
If Sat Tax can assist, the scope of work and fee basis will be confirmed in writing before work begins.
You can also read more about the information needed on the Crypto Tax Records page, or review the How It Works page to understand the full process.writing before work begins.
