"I am a Jessie."
Too knackered after trying to get my head around UK crypto taxes for any intelligent reponse but, none the less, I enjoyed reading your post as always.
Happy New Year to you!!!!
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"I am a Jessie."
Too knackered after trying to get my head around UK crypto taxes for any intelligent reponse but, none the less, I enjoyed reading your post as always.
Happy New Year to you!!!!
Posted Using LeoFinance Beta
Yeah those crypto taxes are a nightmare - basically, any time you dispose one crypto for another or fiat for crypto or crypto for fiat, it's a taxable event. Any gains you make above the threshold for one cryptoasset to another will be taxed.
Having said that, unless you've made gains of over £12,300 or whatever the threshold is, you won't need to pay any tax, it's just a question if it needs to be declared and what form you need to fill in to send off to HMRC!
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That's the easy bit I reckon. The regular cryptocurrency I mean.
More tricky is handling my Steem income from blogging without any historical records, or working out how to handle income from Splinterlands where there's DEC earned for every win plus reward cards and cards I've purchased etc. etc. Then there are the cards I've rented and the income and cards received from others who've played my accounts. (insert screaming emoji) 😂
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Haha unfortunately, crypto was just considered gambling a couple of years ago so any gains you made weren't taxable as it was considered "prize money". Then any gains were taxed only when you cashed out to GBP. Now it's everything lol! They really changed their tune this last 3 years the HMRC! I had to trawl through 10 exchanges, put all the transactions together and have over 750 lines of various transactions.
Well, that's where the difference is between classing crypto as income and as an asset. If you're living off your steem earnings now through blogging then you will be subject to income tax. If not then it will be subject to capital gains and so any time you change out a Hive/Steem engine token to another, it's a taxable event unfortunately.
I posted this article a month ago about it and it links to the HMRC site which they also change as and when:
https://leofinance.io/@nickyhavey/capital-gains-tax-and-crypto-in-the-uk
I'm not an accountant by the way haha! If you have a crypto accountant then even better as they can tell you. I'm still unsure as to the exact form to fill in and when and if you need to declare it if below the tax threshold
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I'm not living off Steem earnings. I wish. 😁
But I was blogging 4 times a day and earning curation rewards which, from how I understand it is counted as income. My first 1000 Steem was earned that way. Even though I never declared it (as, as you say, it was considered gambling at the time) there will be no tax payable on it because, as a sole trader I had losses that year.
However, it still counts for capital gains although it's unlikely I was anywhere near the threshold. The issue is more the record keeping one for the time when I actually do want to sell it. Or if and when I reach 4x the CG threshold, at which point the gain needs to be reported, if no tax is due.
Anyway, I'm just taking it one step at a time. Right now I'm adding as much data as I can find to Koinly and I'll focus on Steemit and gaming after that. Mmaybe, by the time I get that far HMRC will have changed the rules and made it simpler again. 😂
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Judging by what's written on the CryptoAssets for Individuals page - this is a run down of which taxes apply:
So you won't be subject to income tax from blogging on HIVE/STEEM unless you are employed by someone here to do so and they pay you in STEEM/HIVE. It might be considered an airdrop but you'd only have to pay CGT when you dispose of the crypto or use it to pay for something, which you'd need the £ value of at time of disposal:
Another thing to think about is "pooling" where you'd just add each individual crypto in its own separate pool so you don't need to track every transaction and just bundle everything together (although they do say to keep track of every transaction, network fee and exchange fee as this is important in calculating your "allowable costs").
Essentially, any time you dispose of your crypto for ANY reason, make sure you have the following:
Some nice bed time reading for you on that link at the beginning of the comment haha!
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😂 I've read the stuff in that link a few times already!
Not sure about the employer bit anymore. I thought the same as you when I first read the documents - "ah. It won't apply to me as I'm not an employee". However, I've since been reading some stuff written by a UK tax advisor/accountant and he talks about receiving crypto income as a freelancer.
His response to a question from a self-employed artist for example was "you sell some art for 1 BTC. That is converted to sterling at that date and goes on your tax return as income and charged as appropriate. When you exchange into fiat a capital gain or loss is calculated as the proceeds less the cost when received as income."
So I think that blogging for crypto might well be counted as income. 😊
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OK, in that example, the artist has sold some art (product) for 1 BTC - i.e. someone has bought a product they sold, that goes into income with BTC at price x on date x. Then they sold that BTC for fiat at BTC price y on date y so subject to CGT.
I guess it would be more akin to what you earn as a content creator from Google AdSense for example if you have a successful blog or YouTube channel... That's the only thing I can think of that's similar but you aren't selling a blog like that artist was selling a product as no-one is buying your blog?
Otherwise, you'll be going back through every blog you've ever done, every comment you made that got voted on and earned a reward, every curation vote you ever made, checking the price at the time, every time you gained some HIVE/STEEM for staking Hive/Steem Power... I'd just pool it for CGT when you come to dispose your crypto but I'm not even close to CGT threshold anyway 😆
This might shed some light too:
https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets
Lol thanks I appreciate you tAking the time and joining the J squad! I think. @nickyhavey is pretty well schooled crypto tax in the UK I have no cooking clue how BJ wants to snatch your Sats!
But if it were me I’d just move it into TGBP and then put it into an interest account should you want to take profits off the table
Well, funny you should say that. I was just reading a discussion of that very thing and I'm not sure it will work. From the mouth of an accountant . . .
"Selling a pegged coin is still a disposal there, (so taxable) just likely no gain".
It's all so complicated and records are so lacking, especially from Steemit, that I've started to find it more amusing than stressful. 😂
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LOL I don't think the tax peeps that came up with these laws understand how crypto works, it's not like stocks its constantly moving around and changing, it seems pretty silly to me. thats why I don't even bother to cash out I just put my profits in DAI and BTC and leave it there, and I keep buying BTC so it offsets any gains I get so if I do have to sell I already have a massive amount to offset
Yeah it's BS here mate ever since they changed their approach from "crypto is gambling so anything you get is winnings and non-taxable" to "tax EVERYTHING", it's been a minefield!
Even just moving from one crypto to another (even if it's a stable coin) is a taxable event and you need to work everything out in £.
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So is there like a special software they can provide you with because fuck me I am not going to do that, that's way too much work. For me it's easy as long as I don't take out more Rands than I put in, I don't have to worry because I've cashed out a loss for that financial year.
There probably is a program you can use but I haven't stumbled across one yet and it's not on the HMRC site. Pulling data off of 10 exchanges and condensing in to one spreadsheet was a pain in the balls! I don't know how they will monitor all the change addresses that Ledger throws up when you send stuff out from exchanges to the Ledger but I'm operating at a loss in almost all my alts anyway.
It used to be like that in the UK in the in-between gambling and tax-to-death stages - you only got taxed on what you took out to GBP from what you put in.
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