Recap launches a crypto tax dashboard for UK investors

The Recap Dashboard was designed to serve investors in crypto assets, NFTs and Bitcoin by offering a comprehensive overview of all their assets, transactions, and tax estimations in a single place. The dashboard is aimed at investors from the UK, and it can form a tax estimate for the prior tax year and current tax year. It can also help users calculate their crypto-net-worth, which some users refer to as a ‘true’ value after tax. 

Recap’s efforts to simplify crypto taxes have been made evident by other product launches, including automated portfolio tracking and HMRC-compliant tax exports, which enable customers to manage their assets without having to worry about the complexities of taxation. 

In the company press release, Recap officials emphasised the way investors look at their taxes and crypto portfolios, noting a tendency to separate the two into different financial entities. With the Recap Dashboard, investors and accountants can proactively manage both assets and tax affairs. They also mentioned the UK’s ambition to become a global hub for crypto asset technologies but noted that crypto tax guidance doesn’t receive enough attention. 

By gaining a deeper understanding of the dashboard’s more advanced features, investors can use it to reduce their tax payout by getting rid of depleting assets in order to lower the tax figure. The tool also encourages future planning and making more informed investing decisions.

General notions about crypto taxation in the UK

According to koinly.io, there is no specific Bitcoin tax or cryptocurrency tax in the UK, but crypto assets are either subjected to capital gains tax or income tax. The crypto tax users need to pay depends on the specific transactions they perform with their crypto assets. If the assets are used to generate income, users need to pay income tax. If they are used to generate a capital gain, they are subjected to capital gains tax.  

Furthermore, since HMRC sees crypto as a capital asset, when holders dispose of a capital asset, they need to pay a capital gains tax. Basically, anytime a crypto holder sells, trades, spends or gifts crypto in the UK, he or she is subjected to a capital gains tax. 

When it comes to crypto mining tax in the UK, the activity can either be regarded as a hobby or as a business. The difference is set based on the degree of activity, organisation, risk, and commerciality.

For instance, Hobby miners will pay income tax on mined coins, as well as capital gains tax when they later dispose of those mined coins. As for business miners, mining income will be added to trading profits and be subject to income tax.