Attention UK crypto traders! The tax authority has issued a friendly reminder, emphasizing the potential fine of up to £900 ($1,146) if traders neglect to submit their self-assessment tax return detailing their crypto trades.
The His Majesty’s Revenue & Customs (HMRC) reminder underscores the obligation to pay taxes when receiving crypto from employment, be it part of a trade or income from crypto-related activities. The guidelines extend to situations where traders sell their crypto for fiat, swap it for other cryptocurrencies, or even gift it.
UK crypto traders are under the deadline pressure, with a strict January 31 cutoff for filing returns. Non-compliance may lead to an immediate £100 ($130) fine. Moreover, those who fail to comply within an additional three months could face daily fines of £10 ($13), reaching a maximum of £900. Additionally, they risk losing 5% of the owed amount or £300 ($380), whichever is greater.
Myrtle Lloyd, HMRC’s director general for customer services, emphasizes the importance of including information about crypto-related income and gains in tax returns.
Lloyd urges prompt action, especially with the Self Assessment deadline just weeks away, emphasizing the need for everyone to check their obligations.
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