Trying to meet the UK tax deadline in January 2023? Here’s what to do

cointelegraph.com:

With the Jan. 31 deadline for filing tax returns in the United Kingdom fast approaching, crypto investors who haven’t yet submitted their crypto tax returns are in a tight spot. From figuring out how crypto is taxed in the U.K. to accurately computing net tax liability, it can be a perplexing and complex process for new investors.

However, by following simple registration steps and using advanced crypto tax tools, U.K. crypto investors can save a lot of hassle and file their tax returns online to avoid any late submission penalties.

In order to be eligible to fill out self-assessment tax returns online, crypto investors will have to first register with HM Revenue and Customs (HMRC), the non-ministerial department of the U.K. government tasked with the responsibility of collecting taxes.

Self-employed individuals or sole traders need to register through their business tax account online, while those who aren’t self-employed need to use form SA1 and fill it out online. Once done, investors will need to extract and keep records on hand to compute and fill tax returns correctly.

Before proceeding to file their self-assessment crypto tax returns, investors ought to understand how HMRC treats different types of crypto products and income in terms of taxation. While airdrops, liquidity pool rewards, mining, and staking income are taxable, cashback rewards, swaps, hard forks, and tokens from initial coin offerings tokens aren’t subject to tax.

Investors will have to pore over their bank and trading account statements to arrive at the total crypto income earned through different segments and maintain expense data for each separately. Any capital gains or losses made in the accounting year will also be needed to arrive at the final tax