Nico Fdz

Hi team, I am an individual contributor and I'm currently on 257T tax code. I want to invest around £20-30k to buy machines to mine bitcoin and other crypto assets. I will buy them in the US and I will host them with a hosting company, to make sure they can be fully running and get support/maintenance. I will have electricity bills every month. I've read multiple articles from the crypto assets guide (https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-receive-cryptoassets) and it's not clear if you actually invest a lot money and the computers are only for mining crypto. I understand if you use your current computer to mine crypto and work, entertainment. Also, I want to understand in what case it could be consider as Capital gain tax (lower taxes than Income tax). How much trading I should do in order to be consider as trader? The reason I'm asking is that the machines cost around £10k each, they cost around £150 per month to run on electricity and if I can use the invoices of the purchase of the machines and the bills against the income received (crypto awards), that I need to sell daily. Then I will be taxed 45% of every £1 I receive from mining without being able to deduct the expenses. If you see any case where I can deduct those expenses, then the whole side project could make sense to invest in it. Thanks!

I want to start mining crypto in the US. I will buy machines in the US (thousands of dollars), host them in the US by a hosting company, they will charge me for all expenses to maintain, repair and have them 100% working for mining only. I will get crypto rewards every day based on my mining activity. Then I want to understand how I am going to be taxed in the UK. These crypto rewards could be up to £30-40k per year. With the cost of buying machines of £20-30k plus, £2-4k costs of utility bills, hosting fees, repairs, etc. I am currently in the UK and pay taxes here where I earn more than £100k yearly. Thanks for giving me advice as I am also considering opening and LTD business to be able to deduct all these expenses from mining, in case I cannot do it as an individual. Thanks

I am a UK tax resident. I want to understand if I create a LTD to start mining crypto, how is the business going to be taxed? If I create the LTD business and I buy computing machines in the US and I host them there, with the only purpose of mining crypto assets and getting paid daily. Can I deduct all the costs from buying the machines (thousands of dollars)? The costs of running those computers like electricity bills, support, repairs, insurance, etc? If I sell the crypto assets after 2-3 months to pay expenses, how is it taxed? Income tax or capital gains? What deductable expenses are allowed? The expected income is below £50k so I guess it will be tax 19% corporation tax? Thanks