Since cryptocurrencies are not cash – they are not financial assets. They are therefore treated as Intangible Assets.
Initial measurement is at cost, subsequent can be at:
Cost (easiest to stick with)
or Fair value
On disposals you can calc cost using FIFO, LIFO or Weighted Average Price. I recommend the latter to keep the Accounting cost price c/f in line with the s104 Pool for tax calculations.
Moneysoft and BrightPay are those most frequently recommended on here. Having tried them both my vote lies with BrightPay for its ease of use while incorporating all payroll funtions (inc Payroll Giving and P11D's). Good value, better UI and more modern solutions overall.
Just got to look at that guidance thanks. So, method of FIFO or weighted average price (same as s104 pool method) is choice available to the directors. Thanks - settles that - Accounting and tax treatment can stay in-line.
No, I don't really want to allocate costs differently. Using the cost basis determined under the pooling rules would nicely keep the accounts in-line with tax comps. Just wondered if I MUST use FIFO which does work out differently?
I understand then; that by default a loan advanced in joint names of say £20k is assessed for BIK purposes as £20k EACH!
If however there is one advance of £10k to husband and another of £10k to wife (with separate written agreements) I'm inferring that they may each enjoy their BIK £10k small loan allowance. Any trip wires to this?
I recommend you use this opportunity to switch to the more forward moving of the two providers - BrightPay. Good value, nice User Interface and hands-down easiest handing of AE Pensions of those I originally trialled.
Reading through your needs Brightpay is a perfect fit for you.
1. You'll save money on the software
2. It's a better than the rest user experience
3. Their Connect software will allow you to offer cloud features to clients
4. AE Pension is built in at no extra cost (you really will be surprised as you're moving from Sage) and not just better - I compared before moving - I personally feel that they make AE as easy as poss.
5. You can save the payroll files to something like DropBox to pick-up and work on a client from several computers
I really hope you make the switch
My answers
Since cryptocurrencies are not cash – they are not financial assets. They are therefore treated as Intangible Assets.
Initial measurement is at cost, subsequent can be at:
Cost (easiest to stick with)
or Fair value
On disposals you can calc cost using FIFO, LIFO or Weighted Average Price. I recommend the latter to keep the Accounting cost price c/f in line with the s104 Pool for tax calculations.
Moneysoft and BrightPay are those most frequently recommended on here. Having tried them both my vote lies with BrightPay for its ease of use while incorporating all payroll funtions (inc Payroll Giving and P11D's). Good value, better UI and more modern solutions overall.
Just got to look at that guidance thanks. So, method of FIFO or weighted average price (same as s104 pool method) is choice available to the directors. Thanks - settles that - Accounting and tax treatment can stay in-line.
No, I don't really want to allocate costs differently. Using the cost basis determined under the pooling rules would nicely keep the accounts in-line with tax comps. Just wondered if I MUST use FIFO which does work out differently?
Tax-treatment: A licence to trade is treated the same as purchased goodwill. Since 8 July 2015 there is not tax relief for amortisation on either.
I believe a memo of the cost of the licence/goodwill should be maintained for off-set against a possible future sale creating a capital disposal.
Accounts-wise: It'll need amortising over no more than 10 years
Ok, ok you're a nosey lot (I wondered if x3 posts would be spotted) :-D
I suppose it is a bit of a speciality at the moment (lets face it there are more clients with more excess cash now that pre-COVID).
I don't particularly have any suspicion why it wouldn't be allowed - just running it past the experts! Thanks for your help.
Thanks for a lively discussion and thanks WP. Link for convenience: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim26280
I understand then; that by default a loan advanced in joint names of say £20k is assessed for BIK purposes as £20k EACH!
If however there is one advance of £10k to husband and another of £10k to wife (with separate written agreements) I'm inferring that they may each enjoy their BIK £10k small loan allowance. Any trip wires to this?
I recommend you use this opportunity to switch to the more forward moving of the two providers - BrightPay. Good value, nice User Interface and hands-down easiest handing of AE Pensions of those I originally trialled.
Reading through your needs Brightpay is a perfect fit for you.
1. You'll save money on the software
2. It's a better than the rest user experience
3. Their Connect software will allow you to offer cloud features to clients
4. AE Pension is built in at no extra cost (you really will be surprised as you're moving from Sage) and not just better - I compared before moving - I personally feel that they make AE as easy as poss.
5. You can save the payroll files to something like DropBox to pick-up and work on a client from several computers
I really hope you make the switch
A direct debit for Tax Credit claw backs can appear similar. Worth checking