HMRC is 👀 watching 👀 your every move!
Conversations we have with clients reveal so much more than just their financial transactions and we thoroughly enjoy hearing what makes them tick and motivated to take on the world. We come across the very cautious to the very daring but wanted to highlight on some misconceptions clients had about crypto investing that really stood out!
It's a decentralised exchange - Can't prove its me - Catch me if you can!
So the attraction behind Crypto all started with Bitcoin, the notion you could trade currency through a decentralised exchange meant no banks were involved, no one to lay down laws from government and you could freely trade with others in a transparent manner with complete immunity as you're private details were never exposed. We still have no idea who set up Bitcoin! That's how sophisticated this system is and you guessed it criminals soon came to realise its potential for money laundering purposes.
Bitcoin and Altcoins popularity has jumped over the years with more of us pumping our hard earned savings into them rather than traditional savings accounts or pension, it was only a matter of time until HMRC took the matter seriously. So in 2020 we saw the first signs that this once secret industry was now going to follow some degree of legislation when HMRC contacted Coinbase for information on all UK registered users. The cover of decentralisation was lifted and you found your investments were now exposed for those using the Coinbase platform.
Since then we have seen numerous HMRC manuals regarding the taxes associated with Crypto investments and we saw an influx of demand for our services to support our investors. It also meant you could no longer declare less profits that actually made by keeping profits within the exchange itself.
You can find out more about HMRC's guidelines at the links below.
If you need help understanding your commitments and whether disclosure is necessary (to avoid fines) then book yourself in for a free 15 minute discovery call with our experts.