Specialist cryptocurrency tax advisors and accountants in the UK
“In the first quarter of 2021, Tesla added $1.5 billion worth of Bitcoin to its balance sheet. In the second quarter of 2021, Microstrategy added nearly $500 million of additional Bitcoin holdings. The UK is currently home to 249 high-growth companies developing blockchain-driven software and blockchain services. Square Mile is right on the pulse.”
Help for crypto and blockchain
technology businesses.
We’re here to help you navigate the ever-changing world of fintech. From TGEs, SAFTs and DApps all we need is your business – no matter how complex or simple.
Square Mile is a team of passionate, dedicated professionals who have been working in the finance industry for over 20 years. We are not just your average accountants; we specialise specifically on cryptocurrency and blockchain tax matters alongside other important aspects such as legislation guidance or business planning strategies tailored to suit each client’s needs.
Meet Medallion Arts, our newest fan.
The artist-to-fan connection is fractured, limiting an artist’s ability to build tailored creative experiences and sustainable economic opportunities. Medallion is Web3 technology that helps artists launch digital worlds to expand fan participation, actionable insights, and economic potential. A team of music and tech industry veterans leveraging this new technology to usher the biggest names in music into a new digital era.
“Starting from scratch, Square Mile quickly created a robust finance function for us with timely and accurate reporting. They have become a trusted advisor on tax, compliance, and international accounting issues, and they continue to anticipate the needs of our growing business.”
Advice around taxation, including R&D and transfer pricing and international account consolidation strategies is crucial for many companies in the Web3 space.
Cryptocurrency Tax
Understanding the tax environment in which your business operates is essential to mitigate financial risk and protect yourself. With an increasing amount of money moving through this market, it’s important for businesses like yours not only know about but be compliant with all regulations – otherwise they might find themselves exposed when legislation catches up.
EIS & SEIS
Earlier-stage funding rounds in the UK are fueled by the SEIS/EIS tax relief. Many blockchain and crypto tech startups may qualify as a ‘Knowledge Intensive Company’ but don’t realize it. They have a special status when it comes to SEIS/EIS. They can raise almost double the lifetime funding limit of EIS (£20m total vs. £12m total), and a longer fundraising window (10 years instead of 7 years) as well as a host of other benefits. Let us help!
Getting paid in cryptocurrencies
There are specific employment rules governing how salary-adjusted stock options (SAFTs), options over tokens, or trying to remunerate your employees, contractors, or anyone within your network with tokens would be taxed. Our team members are here to help you understand this process and make it easy for everyone involved.
R&D Tax Credits for crypto & blockchain businesses
Considering that companies are heavily investing in developing blockchain-based solutions such as DApps and DeFi, our specialists will help identify any opportunities for claiming these incentives. These developments usually involve highly skilled software developers, cryptographers and mathematicians, and often qualify for R&D tax relief. Businesses claiming R&D tax relief can gain a lucrative cash credit of up to 33p for every £1 spent on development. Let us know what type of work your company does so they don’t miss out.
NFTs (non fungible tokens)
Crypto tax solutions for artists and collectors. Focussing on the needs of creative professionals, the gaming industry and projects. It’s hard enough dealing with the current fiat-driven system, but what about when you have to do all your taxes in crypto? We can help make that process easier by ensuring everything remains tax efficient and making sure there’s always enough money sitting around for those obligations of compliance – no matter how large they might be.
Help for individual crypto investors
If you are looking for some guidance on how to structure your affairs so that they are as tax efficient and possible, while also making sure the correct amounts of taxes were paid- we can help. We have years worth of experience with all aspects relating to cryptocurrencies including investing/trading exchanges or margin trading; if it’s not clear whether something falls under ‘Arbitrage’ then don’t worry! Our team will be able provide robust advisory services which ensure any matters related thereto (like mining) come out unscathed from an audit standpoint too – guaranteeing optimum performance in both worlds.
Are you an individual trading in crypto, and need help with your self assessment? Are you a company in need of a crypto savvy accountant?
How are cryptocurrencies and cryptoassets taxed?
It is the lack of specific crypto tax legislation that is the biggest problem. As a result, profits in the UK are taxed differently based on a taxpayer’s actions and circumstances. Buying, selling, and acquiring cryptocurrencies will involve capital gains tax, income tax, and inheritance tax. Do you have questions about crypto tax, such as:
- Cryptocurrency and Capital Gains Tax
- When does a cryptoasset become liable?
- Cryptocurrency and Income Tax
- Employee Remuneration
- Trading
- Mining of Cryptoassets
- Airdrops
- Cryptoassets and Inheritance Tax
- Staking
Meet your crypto Consultants and Advisors
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Accounting and cryptocurrency tax in the UK
Cryptocurrency taxation in the UK is still a developing field. The guidance from regulators has only just begun, and it likely will change over time as well – so those who own cryptocurrencies need to be aware of any changes that might affect them or their taxes. We are here to help! Our team of crypto accountants will make sure you’ve got your taxes and books in order so that all eyes can focus on the latest investment about to take off.
