TaxCalc Blog

TaxCalc Top Tip:  Car Benefit Calculator­­­­­

To ensure you receive the correct benefit calculation for zero emission cars:

Within Company car wizard > Car details, select ‘yes’ to ‘Does the car have an approved CO2 emission figure’ and enter the approved emissions figure as zero

The list of exclusions and special cases are subject to change, so save our knowledgebase article for a regularly updated list.

Future: Evolving Compliance for Cryptoassets

The cryptoassets sector is fast-moving and developing all the time, and consequently the tax treatment continues to develop. HMRC have recently updated their advice with more detailed guidance.

In brief:

• HMRC will apply tax provisions according to what activity has taken place which could include; buying and selling exchange tokens, exchanging tokens for other assets, ‘mining’ assets and providing goods or services in return for exchange tokens.
• The transaction needs to be converted to pounds sterling by establishing an appropriate exchange rate, for which records of the valuation methodology should be kept.
• A key factor in determining the tax treatment is whether a trade is being carried out in which case the receipts and expenses will form part of the trade profit calculation.
• If the activity concerning the exchange token is not a trading activity then the activity will be a disposal subject to corporation tax or capital gains tax.
• Transactions may be pooled for gains and losses purposes for which HMRC have provided detailed guidance.
• VAT is due in the normal way on any goods or services sold in exchange for cryptoassets tokens but exchange tokens received by miners for their exchange token mining activity will generally be outside the scope of VAT.
• Exchange tokens paid as earnings to an to an employee is subject to income tax and national insurance contributions.
• Separate records for each transaction must be kept.

Detailed guidance can be found on  tax treatment of individuals and businesses with cryptoassets.

Accounting Excellence Software Awards

Voting for the annual Accounting Excellence Software Awards is open! Whether you're new to TaxCalc or have trusted us to power your practice for years, we'd really appreciate your vote of confidence.

Vote now