With the deadline for filing income tax returns in the UK on January 31 approaching efficiently, investors who did not submit encrypted tax returns were in a difficult situation. It may be a complex and complicated process for new investors to calculate how the United States should pay taxes in a secret way and accurately calculate the net tax payment time.

However, according to the simple application and registration process and the use of cutting-edge encryption tax special tools, American encryption investors can save a lot of trouble and apply for tax returns online to prevent any delay in submitting penalties.

Apply to HMRC for registration

In order to have the right to fill in the self-assessment tax declaration form online, the crypto investor must first apply for registration at HMRC, which is a non-bureau level unit of the European government responsible for paying taxes.

Individual businesses or self-employed operators must register online through their VAT account, and not individual businesses need to use SA1 form and fill it online. Once carried out, investors will need to obtain and keep the records on hand to properly calculate and complete the income tax return.

Calculate encryption gains, expenses and capital gains or losses

Before submitting the self-assessed crypto tax return, investors should understand how HMRC views the income of different types of crypto commodities at the tax level. Although air-dropped materials, rewards from liquidity pools, mining and pledge income are taxable, no tax is required for rebate rewards, exchanges, hard forks and tokens issued publicly for the first time.

The investor will have to carefully check his bank or transaction account form to get the annual income of cryptocurrency obtained through various units, and maintain the expense data information of each department separately. All net capital gains or losses during the accounting period will also be used to calculate the final tax payment time. The cost of tax payable treatment is calculated based on the inductive method of HMRC, which allows a simpler calculation of capital gains tax.

Complete the Self-Assessment Income Tax Return SA100 and SA108

Then, investors must fill in the forms SA100 and SA108, and report the net profit and capital gains (if any) of the taxable amount of cryptocurrency according to the actual indication of each form. In box 17 of Form SA100, all encrypted taxable income must be reported, such as pledge, taxable air-dropped materials, mining income or other types of income, and at the same time, all income expenses can be summarized in box 18.

In addition, all capital gains in excess of 12300 yuan need to be identified in frame 7 and further reported in form SA108, in which detailed information must be provided, such as the total amount of processing, total processing income and total allowable cost, to facilitate the calculation of total income, capital loss and applicable net capital gains or losses.

If the capital damage is carried forward from the previous year and applied in the year, the same information needs to be updated in boxes 45, 46 and 47 of Form SA108. Finally, the capital gains summary SA108 form can be submitted with online tax special tools such as Taxd, which helps to encrypt investors to easily solve the self-assessment form and directly apply online to HMRC.

The following is how to submit the encrypted tax return through five processes:

1. Apply to HMRC for registration and online tax declaration.
2. Calculate crypto tax revenue, expenditure and capital gains.
3. Complete the self-assessment income tax return SA100.
4. If you encrypt capital gains or damage carry-over costs, please fill in Form SA108.
5. Apply for self-assessment income tax return online before January 31, 2023.

Apply Code Converter

Although there are many online crypto tax calculators, the Accounting Comprehensive Crypto Tax Calculator can not only intelligently classify the source income from cryptocurrency transactions, mining, security deposit transactions and even DeFi pledge loans, but also calculate the net income of crypto tax after adjusting all tax damages. In addition, users can apply Accounting's encrypted tax report on Taxd software and immediately process HMRC's self-assessment form online.

In addition, the asset allocation tracking solution provided by Accounting can help investors check the ownership of their cryptocurrency and make wise choices for tax avoidance in the near future. In terms of the overall compliance management solution, users of Accounting can directly import data into the wallet and get accurate tax reports with only five clicks. Actively integrate and strategic partnership with more than 400 trading centers in Taxd and other channels, and Accounting brings a one-stop solution to meet various market demands for crypto investors.

For consumers in the United States, Accenting offers 20% discount to all its programs, which is valid until February 1, 2023.