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Jamie-Law
Jamie-Law, Solicitor
Category: Law
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Experience:  Solicitor
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Going into 2018, I will be self employed receiving minimum

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Going into 2018, I will be self employed receiving minimum allowance of (£11,500), however on top of that I want to start cashing out some gains from Bitcoin / Crypto currency trading I'll be doing. Will these be taxed as capital gains or differently? As I have never declared tax as self employed person previously, how would the process look? To my understending I need send funds from exchange to my personal bank account and then declare this income in my HMRC online dashboard? What documentation should I keep track of for this and what % tax wise would I need to pay?

Hello my name is ***** ***** I will help you.

Are you buying/selling the currency or making bets on it?

Customer: replied 7 months ago.
I have invested into something called mining a while ago and am now generating Bitcoin currency on a daily basis. I'd like to sell amount of Bitcoin accumulated within 1 month period on an exchange at a market price and transfare it to my personal account. At this point I am only selling it.

Yes I realise what mining is.

So in effect its a capital gain, rather than a bet?

Customer: replied 7 months ago.
Indeed, I am trying to figure out logistics of presenting this to HMRC and figuring out what I need to track and file whenever I deposit gained GBP funds into my personal bank account.

You would need to ask for self-assessment return.

But in short its the difference for the BITCOIN you have from what you bought for and sold for.
Quantity will remain.

So you may be selling 0.003 BTC. You know what this was worth when purchased and you would be taxed on the difference.

Can I clarify anything for you about this today, please?

If not, I would appreciate a 5-star rating for my answer. If you need anything further I am available for a follow up at no extra cost.

Customer: replied 7 months ago.
Got it, so just to wrap this up. I should keep a record of: Amount of bitcoin mined, time when I mined it and price of Bitcoin at that time. So if I mine 0.5 BTC per month I can then sell it at the end of the month and I will be paying tax on difference between market price I sold it at and average of prices for BTC I collected during the month, correct?What documents can I keep track of / should keep track of in this situation, mining logs and exchange logs?And I assume I can pay my bank account monthly, but file self-assesment form at the end of the year, for all gains?

Correct.

You should keep paperwork to shows how much it was bought/sold for.

Does that clarify?

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