HMRC crypto tax disclosure facility launched
A new online HMRC crypto tax disclosure facility has been launched. this allows taxpayers to inform HMRC about any unpaid tax on income or gains from cryptoassets. This includes exchange tokens like bitcoin, non-fungible tokens (NFTs), and utility tokens.
Detailed guidance has been published on GOV.UK, providing information on when and how to use the service, the registration process, the required information, and how to calculate the potential tax, interest, and penalties.
Furthermore, on 30 November 2023, HMRC sent an email to certain taxpayers, offering basic information on the taxation of crypto. The email included links to HMRC’s crypto assets guidance and the new disclosure facility.
Contact Alexander & Co before discussing with HMRC crypto tax disclosures
Given the complexity of crypto tax, we strongly advise individuals who believe they may need to disclose to HMRC crypto tax information to contact of our experienced tax professionals before taking action.
Why make a voluntary disclosure to HMRC?
If you have any unpaid tax to declare to HMRC it is always better to voluntary declare this. Failure to do so can lead to tougher penalties and fines and in the more severe of cases, criminal prosecution.
HMRC has wide ranging powers when it comes to tax investigations and this includes crypto tax. It can obtain information from digital exchanges (more information on this here). Additionally, last year entered into an agreement to share information with a wide range of countries on crypto activity.
Before making a disclosure, it is important make sure you have accurate information of the tax due. If you underestimate it HMRC, may not accept your disclosure. Many online crypto tax calculators are inaccurate and require manual adjustments to correct them by experience tax advisors.
It may also be useful to check how tax is calculated on crypto as many people, even those familiar with crypto make mistakes. Our page on how is crypto taxed is a useful place to start for a refresher on the subject.
Alexander & Co – expert crypto tax advice
For anyone requiring crypto tax advice, please contact us to discuss how we can assist. As one of the UK’s leading crypto tax advisors we can assist both individuals and businesses with all aspects of crypto tax and accounting.
Amongst our services, we can assist with reporting capital gains tax losses or gains, analysing and reporting income from staking and discussing how other crypto activities are treated for tax purposes.
Please compete the form on this page or email info@alexander.co.uk. We will be in touch to discuss how we can assist.
