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Are you paying the right crypto tax?
If you have dabbled with crypto currency, such as Bitcoin or Ethereum, you may not have been aware that your crypto trading could have resulted in a tax bill.
By Catherine Heinen, FCCAHM Revenue & Customs (HMRC) has reminded those who have invested in crypto assets that they may need to disclose their trading and pay tax on their profits and gains.
The letters from HMRC state: “We're writing to you as our records show you have disposed of cryptoassets. However, you have not declared everything correctly. This means you may have tax to pay.”
If you have received such a letter from HMRC, it is vital you do not ignore it. Your crypto activity may be subject to Income Tax and/or Capital Gains Tax if you’ve:
- sold cryptoassets for money
- used cryptoassets to buy other cryptoassets
- used cryptoassets to buy goods or services
- gifted them
- swapped them
If you need to report income from cryptocurrency or gains you have made, speak to an accountant who can help you register for self-assessment and prepare a tax return. Contact TaxAssist Accountants on 01865 260630 or use out online contact form and we will get back to you.
For more information on when and why you may have to pay tax on your cryptoassets read our guide on Crypto Tax.
Date published 20 Aug 2024
Catherine Heinen, FCCA
Catherine is a Technical Content Writer at TaxAssist Accountants, and a qualified accountant. With experience working at two accountancy practices in the UK top 50 accountancy firms according to Accountancy Age, Catherine has significant experience in accounts, tax returns and advising clients. Catherine ensures businesses, business owners and individuals are kept up to date and informed by providing concise and informative technical material.
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