HMRC has introduced a new disclosure service enabling taxpayers to voluntarily report any income associated with ‘Crypto Assets’. In this regard HMRC has recently dispatched emails to various selected taxpayers believed to have received undeclared income linked to crypto currency and assets. The launch of this disclosure facility aligns with the UK’s announcement of joining the ‘Crypto Reporting Framework’ (i.e. CARF).
As a standard guideline, Taxpayers must first determine the number of years for which they need to declare unpaid income and taxes. The disclosure could made for anytime, covering the period since the beginning of Cryto-currency in 2008.
Any Income pertaining to the years before 2022-23 should be disclosed using the newly established disclosure facility. However, transactions leading to capital gains related to the year 2022/23 and later years should be reported through HMRCs normal process i.e. self-assessment returns etc. To access the HMRC disclosure facility the users will require to use their ‘Government gateway ID’ and ‘password’.
If you need help with this matter or any other tax matter, please contact us at 02920 614140
