WHY IS IT WORTH STARTING A CRYPTOCURRENCY TRADING BUSINESS IN ENGLAND?

 

WHY IS IT WORTH STARTING A CRYPTOCURRENCY TRADING BUSINESS IN ENGLAND?

 

Cryptocurrencies are a topic that arouses many extreme emotions in Poland. On the one hand, it is very easy to get rich on them, on the other hand, the position of the tax office concerning their settlement changes like in a kaleidoscope. The issued tax interpretations are heterogeneous, and therefore entrepreneurs are not sure how to properly show the purchase, sale, or exchange of a virtual currency for another one. Conducting a cryptocurrency trading activity in the UK, concerning accounting, does not differ from other types of business. The rules are uniform therefore, people mining cryptocurrencies and making transactions on the cryptocurrency exchange do not have to submit applications for individual tax interpretations and can be sure that the settlement method will not be questioned in the event of a possible inspection.

CRYPTOCURRENCY TRADING - SETTLEMENT IN POLAND

At the moment, the Polish tax office requires payment of not only income tax, but also a tax on civil law transactions, which is regulated within 14 days from the moment the tax obligation arises. Moreover, the obligation to pay this tax applies to each transaction, and following current legal regulations, a separate PCC-3 declaration must also be submitted for each purchase and exchange of cryptocurrencies. In the case of people actively operating on cryptocurrency exchanges, settling the tax on civil law transactions requires a lot of time to complete the formalities.

The necessity to pay income tax and PCC may in practice make trading virtual currencies completely unprofitable instead of bringing the entrepreneur a lot of profits.

CRYPTOCURRENCIES AND A COMPANY IN ENGLAND

Registration of a Limited company in the field of cryptocurrency trading in England is possible regardless of the taxpayer's place of residence, you do not need to be a British resident. The LTD company can be established by anyone over the age

of 16, which is extremely important about cryptocurrencies, a recently popular way of earning money, especially among young people. It is not necessary to have a partner, because in a Limited company only one Director and one Shareholder are required, there are also no contraindications for both functions to be performed by the same person. Additionally, the regulations do not define the minimum amount of initial capital.

The owners of LTD companies are entitled to a much higher tax-free amount than entrepreneurs in Poland, it is as much as 11,850 pounds or about 57,000 PLN.

The Ministry of Finance in Poland is conducting a campaign warning against virtual currency, because, according to the Ministry, cryptocurrencies are unfair property rights. Therefore, entrepreneurs trading in cryptocurrencies are not welcome in Poland, and the tax authorities treat them with reserve, which may also result from ignorance and the lack of clear regulations in Polish law. In Great Britain, the state favors entrepreneurs mining and making transactions on cryptocurrency exchanges. Confirmation of the British openness to virtual currencies may be the lack of contraindications that the initial capital in the Limited company should be brought in in the form of cryptocurrencies.