Check if you need to pay tax when you receive cryptoassets
Find out how Income Tax and National Insurance contributions apply when you receive cryptoassets (like cryptocurrency or bitcoin).
Any cryptoasset exchange tokens (also known as cryptocurrency) you receive from employment, or from activities such as mining, staking or lending count as income. This includes any income earned from Decentralised Finance (DeFi).
If you receive tokens as income, you바카라 사이트檒l need to keep records and may need to pay:
- Income Tax
- National Insurance contributions
If you purchased the tokens yourself, you do not need to pay tax on the tokens when you buy them, but you may need to pay tax when you sell them.
If you receive tokens from mining, staking, lending or liquidity pool arrangements
If you receive tokens from mining, staking or lending (including from DeFi) and are not carrying on a trade, HMRC will treat the tokens as other taxable income.
You can get up to 拢1,000 allowance each tax year for trading and miscellaneous income. The income you earn from your cryptoassets will count towards this allowance.
You must tell HMRC if your total miscellaneous income from all sources is:
- between 拢1,000 and 拢2,500 바카라 사이트� contact HMRC
- over 拢2,500 바카라 사이트� register for Self Assessment
If an employer pays you tokens
If you receive cryptoassets as employment income they will count as 바카라 사이트榤oney바카라 사이트檚 worth바카라 사이트�. The value of the asset you receive will be subject to Income Tax and National Insurance contributions.
Check if the tokens you바카라 사이트檙e paid are classed as readily convertible assets (an asset that can be easily exchanged for cash).
Exchange tokens like bitcoin are readily convertible assets.
If your income is a readily convertible asset
UK employers must pay your Income Tax and National Insurance contributions through PAYE before they pay you.
If they pay you in tokens, they바카라 사이트檒l estimate the value of them, and pay Income Tax and National Insurance contributions based on the estimate. They바카라 사이트檒l then deduct tax and contributions from other wages you receive in that period.
It is your responsibility to check and make sure the correct tax is paid to HMRC.
If your income is not a readily convertible asset
Ask your employer if they바카라 사이트檝e paid your Income Tax through PAYE. If they have not, you바카라 사이트檒l need to pay it yourself.
To pay your own Income Tax, complete a Self Assessment tax return in pound sterling.
If you sell the cryptoasset you received at a later date
If you sell the cryptoasset that you바카라 사이트檝e paid Income Tax on at a later date, you should calculate Capital Gains Tax as normal on any increase in the value of the tokens since you received them.
Records you must keep
You must keep separate records for the tokens you receive, including:
- type of tokens
- date you received them
- number of tokens you received
- number of tokens you have in total
- value in pound sterling
- bank statements
- the details of the disposal 바카라 사이트� if you dispose of the tokens
You may also want to keep other records such as wallet addresses.
HMRC might ask for your records if they carry out a compliance check.
More information
You can read further guidance on how cryptoassets are taxed.
Watch a video about how cryptoassets are taxed for individuals.
Updates to this page
-
Updated to include guidance on selling cryptoassets received at a later date, added a YouTube video on how cryptoassets are taxed for individuals. Also removed links to the cryptoassets taskforce final report and the HS287 helpsheet as no longer relevant.
-
First published.