Here’s a heads up for anyone who has been investing in crypto currencies. HMRC are on the verge of sending out ‘nudge’ letters to crypto investors. These warn investors to check their crypto transactions have been properly reported and the correct tax is being paid.
It’s believed that HMRC is taking an ‘educational’ approach – aiming to highlight areas of misunderstanding where crypto investors may not be aware of the associated tax implications of their holdings.
HMRC has information-gathering powers to demand lists of crypto investors from exchanges and has been using these powers over the past couple of years. Cross-border information has also been provided to gather more data from outside of the UK. This includes names, addresses and the value of the crypto assets held.
SO WHAT SHOULD YOU DO?
If you do receive a letter, it’s important to respond promptly and not ignore it.
And if you don’t receive a letter, but hold crypto assets, this is a great chance to make sure you understand the rules and are tax compliant.
For further advice or guidance on crypto tax, or how to respond to an HMRC letter, get in touch with Gemma.
