Last updated: 15 Jan 2024 10:00 Posted in:
HMRC is warning taxpayers to check if they need to complete a self assessment tax return for the 2022/23 tax year to avoid potential penalties.
The tax authority said anyone with crypto-assets should declare any income or gains above the tax-free allowance on a tax return.
Tax may be due when a person receives crypto-assets from employment, if they are held as part of a trade, or are involved in crypto-related activities that generate an income.
Tax may also be owed if a taxpayer sells or exchanges crypto-assets, including:
• selling crypto-assets for money.
• exchanging one type of crypto-assets for another.
• using crypto-assets to make purchases.
• gifting crypto-assets to another person.
• donating crypto-assets to charity.
The deadline to complete a tax return and pay any tax owed is 31 January 2024. HMRC said that those unsure whether they need to complete a tax return can check by using the free online tool on GOV.UK.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “People sometimes forget that information about crypto-related income and gains need to be included in their tax return. Some people affected may not have had to do a tax return before, so it is important people check. With the self assessment deadline just a matter of weeks away, I am urging people not to put off completing it.”
“People sometimes forget that information about crypto-related income and gains need to be included in their tax return. Some people affected may not have had to do a tax return before, so it is important people check.”
Myrtle Lloyd, Director General for Customer Services, HMRC