In October 2021 HMRC announced it would begin issuing ‘nudge’ letters to crypto investors, warning them to check their crypto transactions have been properly reported and the correct tax paid.
HMRC can gather a full list of cryptocurrency holders by submitting data requests to UK-based cryptocurrency exchanges and other financial institutions.
- Individuals will need to declare crypto taxes in their Self-Assessment tax return, which must be filed by the following 31st January (for online returns).
The rules are more complex for businesses involved in cryptocurrency transactions:
- Businesses may be liable to pay taxes such as Capital Gains Tax, Income Tax, Corporation Tax, Stamp Duties and even VAT depending on the type of transaction.
If you are involved in crypto investing and need help to get your tax right, Elsby can help.