In November, HMRC launched a campaign to encourage people to voluntarily disclose any unpaid tax that they owe on their cryptoassets.
Cryptoassets is an umbrella term for the following: exchange tokens (for example, bitcoin), NFTs (non-fungible tokens) and utility tokens.
HMRC’s research in July 2022 found that 1 in 10 of the adult population in the UK held a cryptoasset. Most owners had holdings of less than £5,000, but many people are unaware of the correct tax treatment of cryptoassets and therefore ignore them.
How do you make a voluntary disclosure?
To make a voluntary disclosure of any unpaid tax from income or gains from cryptoassets, click here to be taken the HMRC website.
What happens if you don’t tell HMRC about your unpaid tax from cryptoasset gains?
HMRC already have access to the Coinbase database (the big crypto wallet company) where most people have some or all of their cryptoassets held here. Eventually, HMRC will start trawling through the data and start investigating people. If people have voluntarily disclosed their assets early, without prompts from HMRC, the penalties are much smaller.
To find out more about the taxation of cryptocurrency and how Turas Accountants can help you, please click here.