In March we provided an Overview of HMRC nudge letters given a marked increase in enquiries. HMRC have seemingly highlighted crypto assets as an area of focus, with an ongoing consultation in relation to what digital platforms need to report to tax authorities like HMRC.
HMRC will soon be issuing a new wave of “offshore nudge letters” to individuals, this time with a focus on crypto assets, and their reporting requirements.
The letters will be aimed at UK investors in the crypto market to ensure they have reported and paid the correct amount of UK tax (where applicable).
If you receive a letter, do not be alarmed, as HMRC have confirmed they are “educational letters” with an aim to helping those who may not be aware of filing requirements and tax consequences.
The area of taxation surrounding crypto assets in the UK is complex and we advise you seek professional advice when setting out and completing your reporting requirements. An overview of the taxation can be read in our article Have you invested in cryptocurrency?
This wave of offshore nudge letters will be sent in November 2021 from HMRC via the post. If you receive correspondence and require support in understanding your requirements, or help in reporting, please contact Nikita Cooper or Jay Sanghrajka from Price Bailey’s tax team.
We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.
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