The peeps from My Hardware Wallet were looking to expand into other areas in the Crypto spaces and came up with the idea of creating a UK Crypto Tax Calculator. There were services for other countries, but nothing that worked correctly for our Tax rules in the UK. They had in-house skills to create WordPress sites, but not to create sites of this level of complexity.
They approached us to help them out with the site to handle the complex mechanics, while they created the WordPress site to handle the advertising and marketing. This gave us the best of both worlds, using WordPress to easily update content and create blogs, and a custom site to do the rest.
There were many moving parts to this project:
- Importing trade history files from different Crypto exchanges, each using their own custom format.
- Calculating the GBP value of each trade at the time it occurred using hourly exchange rate data.
- Caching Exchange Rate data for the currently popular currencies, whilst calculating the lessor used currencies GBP values on the fly. This gave an excellent compromise between speed and size of data stored.
- Implementing the Crypto specific Capital Gains Tax rules needed to calculate gains and losses against each Crypto currency.
- Producing a details export report for the HMRC that explains the tax implication of each trade.
- Taking user payments with both PayPal and Stripe to pay for their subscriptions.
During the Beta phase of the project Crypto Tax Helper was approached by an accountant who is managing Crypto Taxes for 100+ clients requesting to be able to use the system to manage these clients instead of doing them by hand.