A Look into Crypto Income Tax | HMRC Tax Rules in the UK
Cryptocurrency is now recognized in the United Kingdom with the HMRC declaring that it is to be taxed as Income Tax or Capital Gains Tax. In this article, we would like to give you a little introduction to Income Tax.
Whilst being primarily recognized as property, there are instances when cryptocurrency is viewed as income, which merits it being taxed as Income Tax and these particular transactions are taxed at your usual Income Tax band.
Here are some circumstances when crypto is viewed as income:
Accepting cryptocurrency as payment which is subject to National Insurance.
When tokens are mined for income.
When airdrops are done – which act as a bonus in most cases.
DeFi interest.
Commissions, benefits, or referral bonuses.
Staking rewards, dividends, or similar.
Do you need to pay tax on cryptocurrency, and how much tax do you have to pay?
It is important to note that the amount of tax you pay on your cryptocurrency income in the United Kingdom as per the HMRC depends on your income tax band, and this falls anywhere between 0% and 45%.
About Crypto Accountants in the UK
Our experts at Crypto Accountants can help all individuals and companies determine whether their crypto assets are to be taxed as Crypto Income Tax, Capital Gains Tax, or even considered as tax-free.
To contact us, visit our website at: https://www.cryptoaccountants.live/.