HMRC sends warning to cryptoasset users

10 Jan 2024

As the use of cryptoassets continues to grow HMRC is warning people to check if they need to complete a self assessment tax return for the 2022/23 tax year and avoid potential penalties.

Anyone with cryptoassets should declare any income or gains above the tax-free allowance on a tax return.

Tax may be due when a person:

• receives cryptoassets from employment, if they are held as part of a trade, or are involved in crypto-related activities that generate an income
• sells or exchanges cryptoassets, including:
• selling cryptoassets for money
• exchanging one type of cryptoasset for another
• using cryptoassets to make purchases
• gifting cryptoassets to another person
• donating cryptoassets to charity.

The deadline to complete a tax return and pay any tax owed is 31 January 2024. HMRC says 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.'

Please contact us if you require any help or advice with self assessment.