Correct way to account for crypto in QF

[fudgednumbers]

I have UK LTD - one client wants to pay us in bitcoin, and another supply partner wants to get paid in etherium.

We’ve opened a Kraken exchange account in order to facilitate this.

We’re also considering diverting a small amount of profits to buy into different ICO’s.

What would be the correct way to account for these activities in Quickfile?

I’m taking a guess that I’d need to create an account (Merchant?) for Kraken, and mark income/payments in crypto to this account with the value marked to market at the time of the transaction? And then any variance in value when withdrawing money as fiat would be marked as a currency variation?

Regarding purchases made as speculative investments, would this all come under the same umbrella, or would I need to account more carefully for individual transactions such as exchanging bitcoin for etherium, or another “investment” coin? and would this vary if the coin was held for a longer term of 1 year+?

I’m just contemplating at what point capital gains comes into play vs trading income, in connection with crypto assets.

Thanks in advance!

Edit: struck out my pre-coffee confusion between corporate and personal income tax. Ignore that part!

[Paul_Courtier]

With respect I think you should speak to an accountant first before doing anything

You have a ltd company but mention capital gains tax which to me says you need paid for professional advice so you don’t mess anything up.

Ltd companies don’t pay capital gains tax. They pay corporation tax.

[fudgednumbers]

yes, you’re completely right. I wrote that before I’d had my first coffee, and it was much needed this Monday morning.