Crypto Tax in the UK

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(Edited)

So I’m thinking that I earn a little bit of hive here and there, who cares?

Apparently the tax man…

Obviously I know this, the only things certain in life are death and taxes. But what really is the situation for me? I’m not making millions, in fact, im not making thousands but perhaps i should check in case i hit upon the next memecoin and make it big.

His Majesty's Revenue and Customs (HMRC) have some nice guidelines that we should all adhere to, a real interesting read. HMRC classifies cryptocurrencies and NFT assets as property, not currency, for tax purposes. This distinction influences how gains, income, and transactions involving crypto are taxed.

Taxation for individuals

Maybe surprisingly everything I receive on Hive is taxable and subject to Income Tax:

  • Payment for goods or services.
  • Mining rewards.
  • Staking rewards.
  • Airdrops (provided they are received as part of an activity, such as a promotion).

This is taxed on the value at the time of receipt.

Then I get to pay tax on the asset if I manage to make a profit, ok we get an annual allowance so we can take a little profit every tax year, in the form of Capital Gains Tax. Transactions that attract CGT are

  • Sale crypto assets for fiat currency.
  • Exchange of one cryptocurrency for another.
  • Use of crypto assets to pay for goods or services.
  • Gift of crypto assets to someone (excluding a spouse or civil partner).

Record Keeping

This is where it starts to get difficult for me, and probably many when it comes to hive, record keeping. HMRC requires individuals to maintain detailed records of all crypto transactions. This includes dates, amounts, the value in pounds sterling at the time of the transaction, and associated costs.

So firstly I need to have logged all my transactions, then I have to have converted this transaction to sterling, then I need to work out if its income.

Looks like I need to do a bit more research…

Luckily @steevc pointed me in the direction of a script from @pharesim that gets a csv of Hive transactions so I have a start, now just to convert them all into sterling and check what costs I should be using to calculate any gains, any body have any ideas?

Please note - I am not a financial or tax advisor, non of this post is advice or should be taken as such. Tax laws are different in different countries. Please do your own research

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(Edited)

Might be a good idea to mention that your post is not advice, and that the rules differ depending on who wants taxes from you. Also if it could be considered a business activity, which makes it a lot more complicated.

Regarding your question, there are several apis for historical price data. I think last time I needed to do that myself I used yahoo. There are paid services for crypto tax summaries by now which hopefully can work with the csv my script provides, I would love feedback on that if anyone wants to try out one of them),

If your transaction count isn't too high or not spread over too many chains and you prefer to do it yourself, the price apis usually provide daily steps and you choose if you use the start or end of the day, or the weighted average that site provides consistently throughout the year.
You then keep track of any price change between receiving and trading an asset, which can either be done by keeping track of which you bought when and apply fifo or lifo or the average price consistently again. There might be local rules that require you to use a certain method.

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Thanks for replying, I have updated the post as you suggested and will remember that for the future!

The UK uses a pooled cost for its calculation of taxable profits from what I understand and I'll be looking at some of the different services available and let you know how your csv out put works with them 👍

Thanks again for writing the script !BBH

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Find links to why we was downvoted on Hive

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https://peakd.com/hive-167922/@bpcvoter3/reply-to-crimsonclad

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Hive Emergency: A Call to Action STOP THE BAD DOWNVOTES

We are facing a critical situation on the Hive blockchain, where a small group of individuals is exerting undue influence and control over the community. This group, comprised of a single "whale" and their associated accounts, is using their power to downvote good content, self-vote their own posts, and power down their tokens.

This behavior is having a devastating impact on our community, and it is essential that we take immediate action to address this issue. We propose two key solutions:

  • Implement a comment requirement for downvotes: This would ensure that users are aware of the reasons behind downvotes and can engage in informed discussions about the motivations behind these actions.
  • Reform our community to prioritize love and inclusivity: We must create a community where everyone can thrive, not just the chosen few. This can be achieved by promoting a culture of love, compassion, and respect.

We understand that some individuals may be concerned about the rules and moderators. However, it is essential to recognize that the rules are made by the same individuals who are farming the system. Therefore, it is time for us to take matters into our own hands and create a new, better Hive.

We invite you to share your thoughts, ideas, and concerns in the comments below. Together, we can work towards creating a more inclusive, compassionate community for all Hivers.

Your decision to keep your actions under wraps is a clear sign of your desperation, and it's not going to work. You thought you could keep your scamming activities hidden, but the truth has finally come to light. It's time for you to face the consequences of your actions and seek help. Being online will not solve your problems; in fact, it will only exacerbate them. Those who encourage your behavior are just as culpable as you are, and it's essential that they take responsibility for their actions as well.

We've even caught some top Hivers using their alt accounts to fund their own projects and manipulate the system. It is like they are playing a game of Hiveopoly, but instead of rolling dice, they are rolling out downvotes and taking money as they wish

The Bilpcoin team were attacked by Themarkymark gang so, we started investigating and gathering evidence, and before long, we had a whole list of scammers and abusers. And let me tell you, it was a doozy

We are like the superheroes of Hive LOL night night Buildawhale scam farm

Merry Christmas, Hive community! We're excited to share some amazing Santa Claus art crafted by the Bilpcoin team with the help of AI

As we approach the end of the year, the Bilpcoin team would like to extend their warmest wishes to everyone happy Christmas and a prosperous New Year

The Bilpcoin team is shifting its focus towards creating more in-depth content, aiming for less frequent but higher quality posts, potentially once or twice a day

We're ending the day with a bang - introducing two more crazy Santa designs: one happy drunk and one smoking

Their attempts to intimidate and silence their critics are equally concerning. The use of downvotes as a means of censorship is a clear indication of their desperation to maintain their grip on the narrative. But it's not working

https://hive.blog/hive-167922/@themarkymark/re-bpcvoter3-sp2q9h

Don't let the enthusiasm of friends or family members cloud your judgment – crypto is a game where there will always be winners and losers

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https://hive.blog/hive-121566/@louis88/re-slobberchops-sp4a2y

At Bilpcoin, we're passionate about what we do, and we're committed to helping our community thrive. If any tribes or individuals need assistance, please don't hesitate to reach out, and we'll do our best to help. We believe in the power of community

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themarkymark (80)in LeoFinance 18 hours ago You are the abuse on Hive hive.blog/hive-167922/@themarkymark/re-bpcvoter3-smp740 LOL TRANSACTIONS DON'T LIE PEOPLE DO PEOPLE LIKE YOU DO Curation reward for BUILDAWHALE COMMENT FARM buildawhale51.108 HP

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Bad downvotes on Hive are a growing concern that must be addressed. These downvotes not only discourage users from sharing their real thoughts and ideas but also damage the community as a whole, we see many walk away

We're disappointed to see that our work is still being downvoted despite the valuable insights and information we provide

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It will be tricky to calculate what you actually made with the price fluctuations. We can earn up to £3000 before paying CGT, but that could be one big transaction for some people. I expect they will not notice until you convert to or from fiat, but it's probably best to get advice if you are concerned.

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I’m not really concerned as I don’t think my transactions will amount to much regards CGT as I’m not planning on selling/trading much. The problem really is that effectively every transaction is taxable as income.

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That's quite insane - basically any Hive income is just a microtransaction. Even the best paid posts generate just like $50 for the author. Filling tax refund with like a 50 curation and 10 author rewards per day, often of like $0.1, is sheer madness to me.

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It is indeed, impossible to track all these microrewards. I would never ever disclose crypto earnings voluntarily.

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Yes, insane, that about sums it up.

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Exploring the Possibilities of AI Art with Bilpcoin NFTs Episode 94 BUILDAWHALE SCAM FARM ON #HIVE

Art crafted by the Bilpcoin team with the help of AI we take great pride in our work

IF YOU WANT MORE FREEDOM JOIN BLURT STEEMIT AND THE TON BLOCKCHAIN

Bilpcoin poly

Bilpcon Crypto Talk

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What is Bilpcoin What is BPC

Exploring the Supply of BPC: Total Supply, Circulating Supply, Burned, and Staked BPC STATS March 14 2023 Bilpcoin

Exploring the Supply of BPC: Total Supply, Circulating Supply, Burned, and Staked BPC STATS FEB 19 2023 Bilpcoin

https://peakd.com/hive-164833/@bilpcoinbpc/you-have-all-witnessed-this-account-being-downvoted-to-a-negative-reputation-for-no-reason

https://blurt.blog/@bilpcoinbpc

https://hive.blog/hive-167922/@bpcvoter1/our-response-to-themarkymark-marcus-buildawhale-usainvote-ipomote-leovoter-gogreenbuddy-and-over-100-of-his-alt-accounts

https://hive.blog/hive-167922/@bpcvoter1/problems

Find links to why we was downvoted on Hive

https://peakd.com/hive-167922/@bilpcoinbpc/those-who-are-dedicated-to-the-cause-of-freedom-and-decentralization-lets-fight-for-good

https://peakd.com/hive-167922/@bilpcoinbpc/our-goal-is-to-transform-hive-into-a-more-inclusive-space-similar-to-the-user-friendly-atmospheres-of-blurt-and-steemit

https://peakd.com/hive-167922/@bilpcoinbpc/by-standing-together-we-can-create-a-more-inclusive-and-fair-environment-on-hive-as-we-see-on-blurt-and-steemit-we-need-to-get-r

https://peakd.com/hive-167922/@bilpcoinbpc/those-who-are-dedicated-to-the-cause-of-freedom-and-decentralization-lets-fight-for-good

https://peakd.com/hive-167922/@bilpcoinbpc/actions-indeed-speak-louder-than-words-a-fact-weve-all-observed-individuals-may-talk-a-good-game-a-whole-lot-of-shit-but-their-

https://peakd.com/hive-167922/@bpcvoter3/reply-2-crimsonclad-you-may-consider-yourself-clever

https://peakd.com/hive-167922/@bpcvoter3/reply-to-crimsonclad

https://peakd.com/hive-167922/@bpcvoter3/consider-revising-the-value-plan-as-it-s-not-providing-significant-benefits-to-hive

Don't forget to follow us on all social media sites and stay tuned for more updates if you are on Hive use #bilpcoin or #bpc on all posts NO SPAM OR FARMERS PLEASE

73,585.851 HP
(2,301,627.566 HP)
A power down is scheduled to happen in 7 days (~7,291.521 HIVE, remaining 6 weeks)

@BUILDAWHALE Received: 2,301,628 HP
blocktrades 2,301,575 HP
@nwjordan 24 HP
@gillianlienmap 23 HP
@epicgames

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https://peakd.com/hive-167922/@bilpcoinbpc/its-been-observed-by-many-that-you-have-not-respected-boundaries-you-have-abused-others-and-caused-distress-to-others-you-might

On HIVE when you cease your actions, we will too. If not, we will continue to advocate and share the truth you may believe you're aware of our accounts, but you're mistaken LOL Accounts are cheap and cost nothing to create a new account

https://peakd.com/hive-167922/@bpcvoter1/let-s-delve-into-the-builda-whale-farm-on-the-hive-gogreenbuddy-who-is-also-colloquially-known-as-the-marky-mark-usainvote

https://steemit.com/@bilpcoinbpc/posts

Hive Emergency: A Call to Action STOP THE BAD DOWNVOTES

We are facing a critical situation on the Hive blockchain, where a small group of individuals is exerting undue influence and control over the community. This group, comprised of a single "whale" and their associated accounts, is using their power to downvote good content, self-vote their own posts, and power down their tokens.

This behavior is having a devastating impact on our community, and it is essential that we take immediate action to address this issue. We propose two key solutions:

  • Implement a comment requirement for downvotes: This would ensure that users are aware of the reasons behind downvotes and can engage in informed discussions about the motivations behind these actions.
  • Reform our community to prioritize love and inclusivity: We must create a community where everyone can thrive, not just the chosen few. This can be achieved by promoting a culture of love, compassion, and respect.

We understand that some individuals may be concerned about the rules and moderators. However, it is essential to recognize that the rules are made by the same individuals who are farming the system. Therefore, it is time for us to take matters into our own hands and create a new, better Hive.

We invite you to share your thoughts, ideas, and concerns in the comments below. Together, we can work towards creating a more inclusive, compassionate community for all Hivers.

Your decision to keep your actions under wraps is a clear sign of your desperation, and it's not going to work. You thought you could keep your scamming activities hidden, but the truth has finally come to light. It's time for you to face the consequences of your actions and seek help. Being online will not solve your problems; in fact, it will only exacerbate them. Those who encourage your behavior are just as culpable as you are, and it's essential that they take responsibility for their actions as well.

We've even caught some top Hivers using their alt accounts to fund their own projects and manipulate the system. It is like they are playing a game of Hiveopoly, but instead of rolling dice, they are rolling out downvotes and taking money as they wish

The Bilpcoin team were attacked by Themarkymark gang so, we started investigating and gathering evidence, and before long, we had a whole list of scammers and abusers. And let me tell you, it was a doozy

We are like the superheroes of Hive LOL night night Buildawhale scam farm

Merry Christmas, Hive community! We're excited to share some amazing Santa Claus art crafted by the Bilpcoin team with the help of AI

As we approach the end of the year, the Bilpcoin team would like to extend their warmest wishes to everyone happy Christmas and a prosperous New Year

The Bilpcoin team is shifting its focus towards creating more in-depth content, aiming for less frequent but higher quality posts, potentially once or twice a day

We're ending the day with a bang - introducing two more crazy Santa designs: one happy drunk and one smoking

Their attempts to intimidate and silence their critics are equally concerning. The use of downvotes as a means of censorship is a clear indication of their desperation to maintain their grip on the narrative. But it's not working

https://hive.blog/hive-167922/@themarkymark/re-bpcvoter3-sp2q9h

Don't let the enthusiasm of friends or family members cloud your judgment – crypto is a game where there will always be winners and losers

WE EXPOSED A SUPER FARM ON HIVE

Super farm https://peakd.com/@memesandstuff/wallet spam scam accounts

https://hive.blog/hive-121566/@louis88/re-slobberchops-sp4a2y

At Bilpcoin, we're passionate about what we do, and we're committed to helping our community thrive. If any tribes or individuals need assistance, please don't hesitate to reach out, and we'll do our best to help. We believe in the power of community

https://hive.blog/hive-140217/@themarkymark/re-bpcvoter1-sp87n1

themarkymark (80)in LeoFinance 18 hours ago You are the abuse on Hive hive.blog/hive-167922/@themarkymark/re-bpcvoter3-smp740 LOL TRANSACTIONS DON'T LIE PEOPLE DO PEOPLE LIKE YOU DO Curation reward for BUILDAWHALE COMMENT FARM buildawhale51.108 HP

When investing, we want to emphasize the importance of diversification. It's essential to spread your investments across different assets to minimize risk and maximize returns

https://hive.blog/@kevm/comments

https://hive.blog/@kcgm/comments

Earn BPC on all your posts! Simply add #Bilpcoin or #BPC to your post, and you'll be eligible to earn BPC. Just don't forget to post your own content and avoid self-voting.

Posted using Bilpcoin

https://hive.blog/hive/@trumpman/re-azircon-spk05h

Bad downvotes on Hive are a growing concern that must be addressed. These downvotes not only discourage users from sharing their real thoughts and ideas but also damage the community as a whole, we see many walk away

We're disappointed to see that our work is still being downvoted despite the valuable insights and information we provide

https://hive.blog/hive/@themarkymark/re-bpcvoter1-spolvn

Withdraw vesting from @buildawhale to @ipromote7318.996 HIVE Sep 21, 2024 Sent to alpha-4,573.000 HIVE Sep 20, 2024 Withdraw vesting from @stemgeeks to @ipromote4.970 HIVE Sep 20, 2024 Sent to hiveswap-5,000.000 HIVE Sep 20, 2024

The Need for Change

We've been having heated discussions on Hive, and off Hive it's time to set the record straight. The Buildawhale scam farm has been exposed, and it's time for them to face the consequences.

Concerns about Downvotes on Hive
Withdraw vesting from @buildawhale to @ipromote7318.996 HIVE Sep 21, 2024 Sent to alpha-4,573.000 HIVE Sep 20, 2024 Withdraw vesting from @stemgeeks to @ipromote4.970 HIVE Sep 20, 2024 Sent to hiveswap-5,000.000 HIVE Sep 20, 2024

https://peakd.com/@elmerlin/activities

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