As the use of cryptoassets continues to grow, HM Revenue and Customs (HMRC) is urging individuals to ensure they comply with tax requirements. It is important for cryptoasset users to check if they need to complete a Self Assessment tax return for the 2022 to 2023 tax year. Failure to do so may result in penalties.
Declaration of Cryptoasset Income and Gains
HMRC emphasizes that anyone with cryptoassets must declare any income or gains above the tax-free allowance on their tax return. This includes receiving cryptoassets from employment, holding them as part of a trade, or being involved in crypto-related activities that generate income. Selling or exchanging cryptoassets, using them for purchases, gifting them, or donating them to charity also require tax declaration.
“With the Self Assessment deadline just a matter of weeks away, I am urging people not to put off completing it. ”
Deadline and Importance of Tax Return Submission
The deadline for completing a tax return and paying any tax owed is 31 January 2024. To determine if a tax return is necessary, individuals can use the free online tool on GOV.UK. HMRC’s Director General for Customer Services, Myrtle Lloyd, urges people not to delay and stresses the importance of including crypto-related income and gains in their tax return.
Read more here at https://www.gov.uk/government/news/tax-return-reminder-for-cryptoasset-users
