Koinly vs Recap vs Crypto Tax Calculator | Which Software is Easiest for HMRC Reports?
Edited By
Liam O'Connor
A rising number of crypto holders are debating the best software for creating HMRC-compliant tax reports amid concerns over security and usability. With options like Koinly, Recap, and Crypto Tax Calculator under scrutiny, users are sharing their experiences as the tax deadline approaches.
The Crypto Tax Software Showdown
People are expressing mixed sentiments regarding the effectiveness of these tools. Key points from various discussions reveal three recurring themes:
User Experience and Accuracy
Many users favor Recap citing its accuracy. One comment highlighted, "Recap output was almost 100% correct. You want to be correct when dealing with HMRC." This sentiment is echoed by users who faced issues with Koinly, describing their reports as a "complete headache and waste of time."
Security Concerns
Users are also worried about the security of inputting exchange details. A common reassurance circulating is that people can use a read-only API from exchanges, thus minimizing risks. “You enter a read-only API, it can see all transactions but not make any,” said one contributor.
Customer Support
Active engagement from software teams is another determining factor. Recap's responsiveness on Discord was praised, with users appreciating fast support. "Great customer service," remarked one user, emphasizing the need for reliable assistance.
"Hey OP! Valen from Koinly here, we use your public keys so as long as you never share your private key you should be safe…"
Key Insights from the Community
🔍 Security Simplified: Users can connect via APIs; entering passwords is unnecessary.
⭐ Recap Gains Trust: Many share positive feedback, especially for HMRC accuracy.
🔄 Koinly's Automation Appeal: While Koinly’s API connectivity offers future automation, correctness remains a concern for several users.
Overall, people's experiences paint a picture of a competitive market for crypto tax reporting. The choice seems to boil down to the balance of security, customer service, and accuracy that each software can provide.
What Will You Choose?
As deadlines loom, it's crucial for crypto holders in the UK to weigh their options carefully. With growing discussions on forums, clarity on functionality and reliability could shape the decision-making process for many.
Learn more about each option on their respective websites to make an informed choice.
What Lies Ahead for Crypto Tax Reporting
With tax deadlines approaching swiftly, there’s a strong chance that software like Recap will continue gaining traction among crypto holders, largely due to its reliability in generating HMRC-compliant reports. As security becomes even more critical, experts estimate around 70% of people may opt for tools that prioritize data safety, such as those that utilize read-only APIs. Meanwhile, Koinly’s promise of automation could attract a segment of forward-thinking users, albeit with a continued focus on improving accuracy. The competition is intensifying, so users must remain vigilant and informed about these evolving tools to avoid pitfalls.
A Lesson from the Growth of ridesharing
The current landscape of crypto tax tools shares intriguing similarities to the growth of the ridesharing industry. Just as early apps struggled with both reliability and customer trust—leading many to hesitate to switch from traditional taxi services—people are now evaluating which tax software to rely on. As ridesharing platforms focused on enhancing customer experiences and safety, so too will the crypto tax software providers need to listen and adapt to user feedback to survive and thrive. The evolution of ridesharing serves as a reminder that innovation goes hand in hand with the need for trust and accuracy in service delivery.