- Crypto Tax Calculator

UK Crypto Tax Calculator

Crypto Tax Type

How to Use the UK Crypto Tax Calculator

Using the UK Crypto Tax Calculator is simple and intuitive. Here’s a step-by-step guide to help you navigate through the options and get accurate results:

1. Select Your Crypto Tax Type

Crypto Tax Type: Start by choosing the type of tax you need to calculate. Click on the drop-down menu labeled “Crypto Tax Type.”
Capital Gains Tax: Choose this if you’re calculating taxes on profits from selling your cryptocurrency.
Income Tax: Choose this if you’re calculating taxes on income earned from cryptocurrency, such as staking rewards, payment for services in crypto, or mining.

2. Enter Details for Capital Gains Tax (If Selected)

If you selected Capital Gains Tax, you’ll need to provide the following information:

Tax Year: Select the relevant tax year from the drop-down menu, ranging from 2017-2018 to 2030-2031.
Income Bracket: Choose your income bracket:
0-12571£ with a default tax rate of 0%.
12,571£ – 50,270£ with a default tax rate of 10%.
50,271£ – 125,139£ with a default tax rate of 20%.
Over 125,140£ with a default tax rate of 20%.
Custom Tax Rate: You can manually input a different tax rate if applicable.
Crypto Purchase Price: Enter the amount you paid to purchase the cryptocurrency.
Crypto Sale Price: Enter the amount you received from selling the cryptocurrency.
Additional Expenses: Choose if you have any additional expenses to deduct:
None: No additional expenses.
Buy Fees and Sell Fees: If you incurred any fees when buying or selling, select this option. It will prompt you to enter both fees.
Others: Select this option if you have other expenses and enter the amount.

3. Enter Details for Income Tax (If Selected)

If you selected Income Tax, you’ll need to provide the following information:

Tax Year: Choose the relevant tax year from the drop-down menu.
Amount Earned: Enter the total income you earned from cryptocurrency.
Income Bracket: Choose your income bracket:
0-12570£ with a default tax rate of 0%.
12,571£ – 50,270£ with a default tax rate of 20%.
50,271£ – 125,139£ with a default tax rate of 40%.
Over 125,140£ with a default tax rate of 45%.
Custom Tax Rate: You can manually input a different tax rate if applicable.
Additional Expenses: Choose if you have any additional expenses to deduct:
None: No additional expenses.
Deposit and Withdrawal Fees: If you incurred any fees when depositing or withdrawing, select this option. It will prompt you to enter both fees.
Others: Select this option if you have other expenses and enter the amount.

4. Calculate Your Tax

After entering all the required information, click the Calculate button.
The calculator will process your inputs and display the results:
For Capital Gains Tax: You’ll see the profit earned and the capital gains tax you need to pay.
For Income Tax: You’ll see the income tax you need to pay and the income earned after tax.

5. Review Your Results

The results are presented clearly so you can review the amount of tax you owe based on the information you provided. This can help you plan your finances and ensure compliance with UK tax regulations.

Tips for Accurate Results

Ensure you choose the correct tax type and provide accurate information.
Double-check the tax year and income bracket to avoid errors in your calculations.
If you’re unsure about the tax rate, consult a tax professional or refer to the latest UK tax regulations.

Using the UK Crypto Tax Calculator simplifies the process of calculating your crypto-related taxes, helping you stay on top of your obligations.

UK Crypto Tax Rates 2024: What You Need to Know

When it comes to cryptocurrency in the UK, taxes can be tricky. The HMRC (Her Majesty’s Revenue and Customs) has specific guidelines on how crypto activities are taxed, primarily through Capital Gains Tax (CGT) and Income Tax. Below is a breakdown of the key points you need to know about the UK crypto tax rates in 2024.

Capital Gains Tax (CGT)

Uk Capital Gains Tax applies when you sell, exchange, or otherwise dispose of cryptocurrency at a profit. The tax isn’t on the total amount you receive, but on the gain—the difference between what you paid for the crypto and what you sold it for.

CGT Rates:

Basic Rate Taxpayers (Income £12,571 – £50,270): 10%
Higher Rate Taxpayers (Income £50,271 – £125,139): 20%
Additional Rate Taxpayers (Income over £125,140): 20%

For the 2023/2024 tax year, you have a tax-free allowance of £6,000. This allowance will drop to £3,000 in the 2024/2025 tax year.

Example:
If your annual income is £70,000 and you made a £11,000 gain from selling Bitcoin, subtract the £6,000 allowance, leaving a £5,000 taxable gain. As a higher-rate taxpayer, you’d owe £1000 in CGT (20% of £5,000).

For details, visit the UK government tax website here.

Income Tax on Crypto

Uk Income Tax applies to cryptocurrency received as income. This includes payment for services, mining rewards, and airdrops.

Income Tax Rates:

Personal Allowance (Income up to £12,570): 0%
Basic Rate Taxpayers (Income £12,571 – £50,270): 20%
Higher Rate Taxpayers (Income £50,271 – £125,139): 40%
Additional Rate Taxpayers (Income over £125,140): 45%

Example:
If you’re a freelancer earning £40,000 a year and received £10,000 in Bitcoin for a project, your total income would be £50,000. Since this falls within the basic rate band, you’d pay 20% tax on the Bitcoin earnings, totaling £2,000.

For more details, visit here.

Scottish Income Tax Rates

If you live in Scotland, your income tax rates differ slightly:

Starter Rate (Income £12,571 – £14,876): 19%
Basic Rate (Income £14,877 – £26,561): 20%
Intermediate Rate (Income £26,562 – £43,662): 21%
Higher Rate (Income £43,663 – £75,000): 42%
Advanced Rate (Income £75,001 – £125,140): 45%
Top Rate (Income over £125,140): 48%

Additional Crypto Taxes

Value Added Tax (VAT): Exchanging crypto for traditional currency is VAT-exempt, but VAT applies to goods or services bought with crypto at the standard 20% rate.
Inheritance Tax: Cryptocurrency is subject to Inheritance Tax if the estate’s value exceeds £325,000. The standard rate is 40%, with potential reductions for charitable donations.

FAQs: How Much Tax Do You Pay on Cryptocurrency in the UK?

The tax you pay on cryptocurrency in the UK depends on whether it’s subject to Capital Gains Tax (CGT) or Income Tax.

Capital Gains Tax: Ranges from 10% to 20%, depending on your income bracket. Basic rate taxpayers (earning £12,571 – £50,270) pay 10%, while higher rate and additional rate taxpayers (earning over £50,270) pay 20%.
Income Tax: Applies to crypto received as income, such as from mining or as payment for services. Rates range from 0% to 45%, depending on your overall income.

Which Crypto Exchange Is Legal in the UK?

Several crypto exchanges are legal in the UK, provided they are registered with the Financial Conduct Authority (FCA). Some of the major FCA-registered exchanges include:

Coinbase
Binance
Kraken
Gemini

Always check if the exchange is registered with the FCA before using it.

Can You Gift Crypto Tax-Free in the UK?

Gifting crypto in the UK is not entirely tax-free. While there is no immediate tax on the act of gifting, the person giving the gift may still be liable for Capital Gains Tax based on the value of the crypto at the time of the gift. The recipient does not pay tax on the gift but may need to pay CGT if they later sell or dispose of the crypto.

Do I Need to Report Crypto on Taxes?

Yes, you need to report cryptocurrency transactions on your tax return in the UK. This includes reporting gains and losses from selling or trading crypto, as well as any income received in crypto.

Do You Get Taxed for Swapping Crypto?

Yes, swapping one cryptocurrency for another is considered a taxable event in the UK. It is treated as a disposal for Capital Gains Tax purposes, meaning you’ll need to report any gains or losses on your tax return.

Is Crypto Still Banned in the UK?

No, cryptocurrency is not banned in the UK. However, the FCA has imposed restrictions on certain crypto-related activities, particularly concerning crypto derivatives like futures and options. Buying, selling, and holding cryptocurrencies are legal, but some specific products may be restricted.

Which Bank Allows Cryptocurrency in the UK?

Several UK banks allow transactions involving cryptocurrency, though policies can vary:

Revolut: Allows buying, selling, and holding cryptocurrencies.
Monzo: Supports transfers to and from cryptocurrency exchanges.
Starling Bank: Allows users to transact with crypto exchanges.

Traditional banks may be more restrictive, so it’s best to check with your bank before making crypto-related transactions.

How Much Is the Withdrawal Fee for Binance UK?

The withdrawal fee for Binance UK varies depending on the cryptocurrency or fiat currency you are withdrawing. For GBP withdrawals via bank transfer, the fee is typically £1.50 per transaction. Cryptocurrency withdrawal fees vary by coin and are usually charged in the currency being withdrawn.

How Do I Declare Crypto on My Tax Return UK?

To declare crypto on your UK tax return:

Calculate Gains/Losses: Determine the profit or loss from each crypto transaction.
Report on Self Assessment: Include these figures in the Capital Gains section of your Self Assessment tax return.
Include Crypto Income: Report any crypto income (from mining, airdrops, etc.) in the Income section.
Pay Tax: Pay any owed tax by the deadline.

Is Sending Crypto to Another Wallet Taxable?

Sending crypto to another wallet is not taxable if it’s your own wallet. However, if you’re transferring crypto to someone else (as a gift or payment), it could be considered a disposal, triggering a Capital Gains Tax event.

Do You Pay Taxes if You Pay with Crypto?

Yes, paying for goods or services with cryptocurrency is treated as a disposal, making it subject to Capital Gains Tax. You must calculate the gain or loss based on the value of the crypto at the time of the transaction and report it accordingly.

What Crypto Wallet Does Not Report to the IRS?

In the UK, the concern is with HMRC rather than the IRS. As of now, most non-custodial wallets (where you control your private keys) do not report directly to HMRC. However, if you move crypto to an exchange or a custodial wallet, those transactions may be reported. Always assume that crypto activities could be monitored and report them on your tax return to avoid penalties.

Conclusion

Understanding how crypto is taxed in the UK is crucial to avoid surprises during tax season. Whether you’re earning from crypto or selling your holdings at a profit, knowing the applicable rates and allowances can help you plan and reduce your tax liability