Brace yourself, Ethel..
One of the most popular questions our team of Chartered Tax Advisors gets asked is ‘How are Crypto assets taxed?’
If that’s relevant to you, and you don’t already know the answer, it’s likely you’re about to find out!
Uncle Jim’s crackdown whip is about to be unleashed on people paying the incorrect amount of Capital Gains Tax (CGT), and crypto assets are destined to go under the microscope. ‘Nudge letters’ are on their way
HMRC estimates that 55% – 95% of its ‘customers’ are paying the wrong amount of CGT. In the absence of specific figures as to how many are paying too much, we can safely assume that figure is very small..
Those who have profited from owning or trading Crypto assets may need to complete a tax return to report their earnings, even if they’ve never done a tax return before
The thing is, Crypto profits likely are subject to CGT, but they might also be subject to Income Tax, and even National Insurance
It all depends on if, when, where and how income was generated. Be aware, HMRC will soon receive details of user transactions directly from the platforms themselves
If you have profited from Crypto assets then, if you have not already done so, you need to bring your tax position up to date. The very worst thing you can do is ignore the situation
Be aware that late payment interest penalties can be as much as 100% of the tax due
This is complex subject matter, and it’s likely you’ll benefit from professional advice, staring with the most appropriate disclosure facility to use
Our team of Chartered Tax Advisors are standing by to help. Book your FREE hour discussion here
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