COINBASE issues a crypto assets tax warning about HMRC declarations
Coinbase tells its UK clients to notify HMRC if they cashed out more than £5,000 in fiat during the 2021 tax year.
- "We would encourage you to consult with your tax or legal advisor with any questions you may have regarding tax matters and your Coinbase account activity,"
This is not the first time Coinbase has warned its users of financial disclosures to HMRC.
In January last year, an almost identical warning was posted for the 2019 and 2020 tax years.
Indeed, the authority reached a deal with the exchange back in 2020:
- "Based on further discussions with HMRC, a revised noticed was issued with a reduced scope that now requires the disclosure of customers with a UK address who received more than £5,000 worth of crypto assets on the Coinbase platform," Coinbase wrote.
According to the HMRC, the registration deadline for last year's tax year (April 2021 to April 2022) was January 2023.
A late filing penalty of £100 applies if your tax return is up to three months late, with steeper fines doled out the longer you wait.
Capital Gains Tax
- If you've sold crypto at a profit, you'll probably pay capital gains tax on it in the UK.
- Swapping cryptocurrencies triggers an event subject to capital gains tax.
- Those trading large amounts of crypto can expect to pay income tax rather than capital gains tax.
- In addition to trading, those who mine crypto as a 'hobby' need to declare miscellaneous income in tax returns.
Meet the team of industry experts behind ComsureFind out more
Keep up to date with the very latest news from ComsureFind out more
View our latest imagery from our news and workFind out more
Think we can help you and your business? Chat to us todayGet In Touch
As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email email@example.com.