Simplify your Crypto Tax Reporting with Koinly

Simplify your Crypto Tax Reporting with Koinly: A must-have tool for UK taxpayers.

Cryptocurrency has become a popular investment option in recent years, with Bitcoin’s value reaching an all-time high in 2021. However, with the rise in popularity of cryptocurrencies comes the need for better tax reporting solutions. This is where Koinly comes in, a UK-based software designed to make crypto tax reporting simple and hassle-free.

With advanced features such as capital gains calculation and tax-loss harvesting, Koinly is a must-have tool for taxpayers who want to stay compliant with tax laws and regulations while minimizing their tax liabilities.

Read on to learn more about how Koinly can save you time, money, and stress and be of support to UK taxpayers.

 Haven’t heard of Koinly? Here’s what you need to know.

Koinly is a cryptocurrency tax software that automates the process of calculating taxes on crypto investments. It connects to various cryptocurrency exchanges and wallets to import data and generate accurate tax reports. Koinly is designed to be user-friendly and can be used by both novice and experienced crypto traders.

Is Koinly particularly useful for UK taxpayers?

In the UK, taxpayers are required to report their cryptocurrency gains and losses on their tax returns. Failure to do so can result in penalties and fines. Koinly makes this process easy and efficient by automating the calculation of tax liabilities.

What are its’ major advantages?

One of the major advantages of Koinly is its ability to integrate with multiple exchanges and wallets. This means that users can import data from different sources and generate a comprehensive tax report. The software supports over 6,000 cryptocurrencies and can handle complex transactions such as margin trading and staking.

Koinly also offers advanced features such as capital gains calculation and tax-loss harvesting. The capital gains calculation feature allows users to see their gains and losses over a specific time period. This information can be used to make informed decisions about buying or selling cryptocurrencies. Tax-loss harvesting is a technique used to offset capital gains by selling losing assets. Koinly can automate this process, making it easier for users to reduce their tax liabilities.

In addition, Koinly provides users with a variety of tax reports such as the HMRC Capital Gains Tax Report and the Income Tax Report. These reports are generated in accordance with UK tax laws and regulations, ensuring that taxpayers remain compliant. Users can also export their data in different formats, making it easy to share with their accountants or tax advisors.

Koinly’s efforts, are not be under-estimated.

Further to what we discussed above, this platform also comes with many other benefits:

  • Koinly’s interface is user-friendly and intuitive, making it easy for users to navigate and understand their tax liabilities.
  • It offers various pricing plans to suit different needs and budgets, including a free plan for small traders with less than 10 transactions per year.
  • The platform extends customer support via email and live chat, as well as a comprehensive knowledge base and FAQ section on their website.
  • Koinly constantly updates their software to ensure compliance with the latest tax laws and regulations, and provides regular blog posts and newsletters to keep users informed.

How do I use Koinly?

Using Koinly is more straightforward than you think.

The first step is to create an account on the Koinly website. Once you have created an account, you will need to connect your cryptocurrency exchanges and wallets to the software. Koinly supports various exchanges such as Binance, Coinbase, and Kraken, as well as popular wallets such as Ledger and Trezor.

After connecting your exchanges and wallets, Koinly will import your transaction history and automatically categorize them. You can then review your transactions and make any necessary adjustments. Koinly also provides users with a dashboard that displays their portfolio value and performance.

Once your transactions have been categorized, Koinly will automatically generate tax reports based on UK tax laws and regulations. Users can review these reports and make any necessary adjustments before submitting them to HMRC. Koinly also offers a support team that can assist users with any questions or issues they may have.

How much does Koinly cost?

Anyone can use Koinly for free, but the paid plans give you access to many services that aren’t available to free users, like access to other tax report formats (like Form 8949 and Schedule D) and custom file format imports.

The paid plans start at £49 per year and offer additional features such as tax-loss harvesting and advanced tax reports.

 Is Koinly secure?

Koinly takes the security of its users’ data seriously. The software uses industry-standard encryption to protect users’ data and employs two-factor authentication to prevent unauthorized access. Koinly also complies with GDPR regulations and does not share users’ data with third parties.

 How does Koinly work?

Koinly operates similarly to an advanced Excel spreadsheet, offering quick and accurate calculations for a variety of cryptocurrency transactions. Here’s how it works:

  1. Import your transactions into the app, either by collecting API keys from your wallet or exporting a CSV file from your wallet to extract data on Koinly.
  2. Verify that all transactions have been accurately imported, which is provided for free as a summary.
  3. Use Koinly as a traditional portfolio tracker app to keep track of your cryptocurrency investments across multiple platforms and services.

 Our final thoughts…

We believe that Koinly could be a valuable tool for UK taxpayers who are invested in cryptocurrencies. The software’s ability to integrate with multiple exchanges and wallets, automate the calculation of tax liabilities, and provide tax reports in accordance with UK tax laws and regulations, make it an ideal solution for those who want to remain compliant and avoid any penalties.

Koinly also offers advanced features such as capital gains calculation and tax-loss harvesting, which can help users make informed decisions and reduce their tax liabilities. With a range of pricing plans to suit different needs and budgets, Koinly is an affordable option for both novice and experienced crypto traders.

As a professional accounting firm, we at AccNet can provide expert guidance and support to those who use Koinly for their cryptocurrency tax reporting.

AccNet’s team of experienced accountants can help users with a range of services, from setting up and integrating Koinly with their various wallets and exchanges, to providing comprehensive tax planning and advice to optimize their tax liabilities. Additionally, we can review tax reports generated by Koinly to ensure that they are accurate and compliant with UK tax laws and regulations.

Got more questions on Koinly? Talk to one of our experts to find out more!


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