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Original poster

Crypto accountant advice

17 replies

hastalavista · 06/12/2022 01:30

Please help. I'm very worried. My husband dabbles in crypto which I dont really understand. I've told him he has to make sure he pays enough tax on it because I'm scared of a big tax bill coming in suddenly. He says he has never made a big enough profit on it to pay capital gains tax. However what I'm concerned about is his liability as a sort if trader... I dont really understand it and I fear he diesnt either but he buys when crypto currencies are low and sells when they go up. I have read vague stuff about this making him a trader. At the moment he earns nearly 50k in his proper job. Would profits from crypto be part of his taxable income for child benefit charge purposes? I keep nagging him as I'm scared about a tax bill. He says hes tried to pay tax on the crypto but he 'can't '. I've said he should talk to a crypto accountant but he just gets angry and defensive at me. Please advise!!!!!

OP posts:
Original poster
hastalavista · 06/12/2022 01:32

To be clear, he doesnt make loads of money on crypto. Is it the same as day trading???? Please can someone who knows advise on tax stuff!! Do regular accountants know about crypto????

OP posts:
Hoppinggreen · 06/12/2022 14:42

I wouldn’t worry, he’s not making any money so no profits to declare for tax purposes.
If he was doing a Self assessment form and was taking an income he would have to declare that.
I would be more worried he will lose loads of money if I were youn

Original poster
hastalavista · 06/12/2022 18:05

But he does make money eg £100 here and there. Yes I'm also worried about him taking out credit to make crypto investments and have made my feelings clear. But he won't listen to me. He put money on a credit card once to make an investment but it worked out ok. I told him plainly he was not to do that again and as far as I know he hasn't. Oh well. If anyone reads this and does know of a proper accountant who knows about crypto and tax please can they point me in the right direction. Thank you.

OP posts:
pinneddownbytabbies · 06/12/2022 18:11

When he makes money on it - is it actual money? Money that is paid into his bank account that can be spent?

Or is the money he makes all held in crypto?

Hoppinggreen · 06/12/2022 18:11

Most Accountants know about tax
Most Accountants won’t advise on Crypto though

Unicorn1919 · 06/12/2022 18:16

Sorry not enough knowledge to comment beyond what is on this website. It really probably depends on amounts involved but yes it is taxable:
koinly.io/guides/hmrc-cryptocurrency-tax-guide/

Original poster
hastalavista · 06/12/2022 21:45

Thank you. It's not capital gains tax which I'm.worried about as he hasn't made that much, its income tax. For example he is near the 50k salary mark and is making pension contributions to bring it down but what I'm worried about is if HMRC say that he has taxable income from whatever it is he's doing then he will have to pay back the child benefit money etc. Thank you for that koinly tax guide. I've sent it to him. I just find it hard to understand whether what hes doing is liable for income tax rather than capital gains tax which wouldn't bother me. He knows the exchanges communicate with HMRC.

OP posts:
BarbaraofSeville · 07/12/2022 15:37

I don't know the ins and outs of crypto and tax liabilities, but you keep claiming CB.

If he becomes liable for repayment on your CB, he can deal with it, by doing a tax return and making the repayment out of his own money. Then it doesn't affect you or house hold finances.

MillyMollyManky · 07/12/2022 15:46

I’d be far more worried about him borrowing on a CC to buy crypto- that’s super-high risk behaviour.

Gamblers tend to tell you about the times they win and keep quiet about the times they lose. Are you sure you know exactly what is coming in and going out (and by in I mean cash, not paper profits)?

No one here can tell you whether he’s trading enough that any money he makes is correctly treated as income rather than capital gain. Like PP said I would leave that to him.

Original poster
hastalavista · 08/12/2022 06:01

Ok thanks all
At least I've warned him. And I've said I'm keeping the CB money and if there are charges he will have to repay them. Thank you all

OP posts:
Spectre8 · 08/12/2022 06:13

Koinly has a great page explaining the crypto tax rules for UK, someone has already posted the link. So typical ppl just always come on crypto threads and bash it but end of the day any investment is a risk this one may just have a slightly higher risk profile.

If he is trading coins e.g. buy bitcoin for x and sell for x and making £100 profit than capital gains tax rules apply. So he is right unless he breaches the threshold no tax to pay.

Its when you get into rexievinf airdrops, buying and disposing of nfts and passive income crypto that tax rules are different.

ChiefPearlClutcher · 08/12/2022 06:14

Call me paranoid but there is quite a few red flags here! Imvho, when someone ‘dabbles’ with crypto and shares/futures on the side it is usually either an excuse for gambling or the beginnings of it.
When was the last time you had a look at ALL credit card statements?
Checked BOTH your credit histories?
Had a look at your/your kids’ savings accounts?

Original poster
hastalavista · 10/12/2022 07:48

Yes I will keep an eye on it.

OP posts:
Spectre8 · 10/12/2022 08:18

ChiefPearlClutcher · 08/12/2022 06:14

Call me paranoid but there is quite a few red flags here! Imvho, when someone ‘dabbles’ with crypto and shares/futures on the side it is usually either an excuse for gambling or the beginnings of it.
When was the last time you had a look at ALL credit card statements?
Checked BOTH your credit histories?
Had a look at your/your kids’ savings accounts?

Oh please tone down the drama. Dabbling in shares and crypto is not a red flag.

Some of us use some of our money to create more money. Its a risk and each type of investment has various risk levels.

Your money in private pension that is invested in funds is no different to dabbling in shares, its all a risk money can go up or down and you could lose it all.

Its not an excuse for gambling or the start of one. Or otherwise your saying its okay for banks etc to do it but not ordinary ppl how dare ppl try to make money. And if your not then I hope all your money is just in bank account and your not making use of any funds etc that are essentially doing what you call gambling. Otherwise your a hypocrite

Cynthiamart · 29/11/2023 01:00

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Rodelansier · 29/11/2023 01:27

Spectre8 · 10/12/2022 08:18

Oh please tone down the drama. Dabbling in shares and crypto is not a red flag.

Some of us use some of our money to create more money. Its a risk and each type of investment has various risk levels.

Your money in private pension that is invested in funds is no different to dabbling in shares, its all a risk money can go up or down and you could lose it all.

Its not an excuse for gambling or the start of one. Or otherwise your saying its okay for banks etc to do it but not ordinary ppl how dare ppl try to make money. And if your not then I hope all your money is just in bank account and your not making use of any funds etc that are essentially doing what you call gambling. Otherwise your a hypocrite

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Yeah right.

Applesaarenttheonlyfruit · 29/11/2023 17:13

It’s classed as CGT and he currently has a £6k (dropping to £3k next year) allowance.

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