HMRC target underpaid tax on cryptoassets

HMRC have issued an educational email informing taxpayers about potential tax implications of investing or dealing in cryptoassets.

The email contains links to HMRC's guidance on what tax might arise when receiving cryptoassets as well as tax implications when you dispose of cryptoassets.

Anyone with a tax liability from dealing or investing in cryptoassets will need to consider how to declare it to HMRC and pay the tax due. Tax liabilities in respect of the tax year 6 April 2022 to 5 April 2023 or later will need to be reported to HMRC via a Self-Assessment tax return. For unpaid tax liabilities relating to earlier years, the recently launched Disclosure service for cryptoassets is offered as a way of making a voluntary disclosure to HMRC. 

The taxation of cryptoassets is not straightforward, and we would recommend taxpayers seek professional advice if they are in any doubt as to their tax obligations in respect of these virtual assets, or if they need to report income or capital gains arising to HMRC.

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