Cryptocurrency tax gap triples

10 Nov 2021

The amount of tax potentially underpaid by cryptocurrency investors tripled between 2020 and 2021, according to data from HMRC.

The tax authority identified £428,000 in 'tax under consideration' on cryptocurrency investments in the year to March 31, according to a report published by HMRC.

This is in comparison with the £142,000 it identified in 2020.

Tax under consideration is the taxman's initial estimate of how much tax may be at stake, not the final tax bill for any tax unpaid. 

HMRC said: 'We continue to develop our capabilities to better identify cryptoassets tax risks - and that work continues to improve through staff upskilling and better categorisation of related tax risks.

'Tax under consideration is not tax owed or unpaid. It is an estimate of the amount at stake in an enquiry and is used by HMRC to manage the deployment of resources based on risks to revenues.'

Last month HMRC confirmed it will begin to send 'nudge' letters to holders of cryptoassets to remind them to pay the correct income and capital gains tax. 

Register for our Monthly Newsletter -

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign up today »

Tel: 01749 685000

Email:

Chalmers HB
20 Chamberlain Street
Wells
Somerset
BA5 2PF


Contact us | Credits | Accessibility | Disclaimer | Help | Site map |

© 2021 Chalmers HB. All rights reserved.
We use cookies on this website, you can find more information about cookies here.

Chalmers HB Limited, Registered in England, Registered number 4233537, Registered Office: 20 Chamberlain Street Wells Somerset BA5 2PF. Chalmers HB Audit Limited, Registered in England, Registered number 9739736, Registered Office: 20 Chamberlain Street, Wells, Somerset BA5 2PF.