Blockchain Tax and Accounting solutions
for Play-to-Earn gamers, NFT creators and cryptocurrency investors

 
 
 
 

Is this you?

  • This is you if you’re earning income from playing Play-to Earn games on the blockchain e.g. Axie Infinity.

    This is you if you’re selling crypto or NFTs you’ve acquired or made from playing Play-to-Earn games on the blockchain e.g. Axies in Axie Infinity.

    Play-to-Earn games allow users to farm or collect crypto and NFTs that can be sold on the market. By playing the game regularly, each player can earn more items or tokens to sell and generate an income (also called tokenisation).

    Some players have even begun to supplement or replace their salaries playing these blockchain games. However, such activity involves risk, as you typically need to put up an initial investment to purchase characters and items to play the game.

  • This is you if you’re acquiring NFTs and selling them on for a profit.

    This is you if you’re minting NFTs and selling them on for a profit.

    This is you if you’re renting out NFTs that you’ve minted or acquired.

    This is you if you’re earning NFT royalties from NFTs that you’ve minted after the NFT changes hands in the secondary market.

    This is you if you’re staking NFTs into DeFi protocol smart contracts to generate an instant or future yield.

  • This is you if you’re investing or trading in the global crypto exchange markets and making capital gains.

    This is you if you’re using coins or cryptocurrency you already own to stake and lend to the system or other people and earning an income from it.

    This is you if you’re participating in the blockchain network by mining or receiving coin rewards for work performed within the system.

What You Need To Know

How We Help You

  • It is absolutely vital that you are 100% compliant with your cryptocurrency earnings by reporting them via Self Assessment. Taxing cryptocurrency income is one of the trickiest and most complex areas of taxation that has ever existed. Unfortunately, HMRC do not play games!

  • If you have started to make a decent living through cryptocurrency then it is highly likely that you will have other areas of tax to consider. With our Tax Diagnostic, we leave no stone unturned so that you can consider your fully stripped down tax position.

  • After completing your Tax Diagnostic, we will plan your financial future by mapping out your tax saving and investment opportunities over a 3-5 year period and consider your goals and objectives so you can achieve these and live the life you dream of having.

  • So that you can receive regular updates on your financial position and get progress reports on your life goals and objectives, Management Reports will give you a highly detailed analysis of your numbers so that you can stay on track and highlight current issues that may impact your future roadmap by not fixing them early.

  • Data capture and general financial administration is essential for any individual or entity dealing in crypto. We use Recap, Koinly and Accointing to link to your exchanges and wallets so that we can generate up-to-date data at the click of a button. Monthly Bookkeeping will transform your Management Reports and improve your investment opportunities and decision making.

Get In Touch

Positive Intentions

We want to ensure we are providing you with the very highest level of service and to make sure that we’re doing everything we can to support you in the growth of your crypto portfolio and improving your personal financial situation. This will take some time to get right and it’ll be the most amazing journey.

Over and Out

crypto@coindrop.co.uk

The Hangar
Unit 32
Western Industrial Estate
Caerphilly
CF83 2TY

 
 

Where are you going??!

Okay.

Let’s start over.

You’re earning money either by trading in cryptocurrencies and making a profit, playing blockchain games that enable you to make an income and/or you create, buy or sell NFTs.

Whether you have made £100 or £1,000,000 you have a legal duty to declare any additional money you earn from investments to HMRC.

Declarations are required even if you made a loss.

So you need to pay close attention to your crypto activities.

Why?

Because HMRC have started to contact taxpayers with random spot checks.

So far the numbers are small with less than 1% of UK cryptocurrency investors being contacted about their potential capital gains tax liability last year.

However, this simply highlights what is coming.

Based on a 2021 estimate from the Financial Conduct Authority there were circa 2.3m crypto investors in the UK.

So this means that HMRC’s figure only covers a mere 0.4% of crypto owners. 

Remember, it is your legal duty to declare any gotten gains or profits.

So you should not be taking a chance or waiting for HMRC to send you a nudge letter to warn you that capital gains tax is owed on crypto profits.

According to further research, the median level of crypto investment is around £250 to £300.

Furthermore, the majority of crypto investors have less than £1,000 invested in digital assets and are likely to be within the £12,300 capital gains allowance threshold.

However, HMRC will no doubt be turning their focus on those with larger investments.

Why?

Because there is a mountain of undeclared tax to be brought back into the Treasury.

The crux is quite simple.

By not declaring your crypto earnings you are committing tax evasion.

And tax evasion is penalised in many ways.

But you can guess the worst, right?

Yep.

And that is the reason behind why Coindrop was created.

To service play-to earn gamers, NFT creators, crypto investors etc on their tax requirements.

In other words, we want to keep you out of jail!

But most of all, we want to help you pay less tax and invest in your future.