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Title: New to bitcoins - UK taxes? Post by: -ester on March 30, 2016, 12:05:54 AM The questions I ask are probably going to sound incredibly stupid, but I'm new to bitcoins so excuse me :-[
I'm getting into bitcoins essentially because I want to save money on ModafinilCat, but I'm confused about taxes. 1. If I make bitcoins by doing survey's and only use what I gain on ModafinilCat, am I liable to be taxed? 2. Is it possible that I'll go into bitcoin debt due to taxes? 3. I can't be taxed if I have a grand total of 0 bitcoins, can I? 4. Do I need to keep a fancy log or have a bitcoin tax calculator? (Considering I'll only be making purchases off ModafinilCat) Yeah yeah I'm an idiot but answer the questions anyway :-* thanks haha Title: Re: New to bitcoins - UK taxes? Post by: g4vinshreds on March 30, 2016, 12:13:40 AM The questions I ask are probably going to sound incredibly stupid, but I'm new to bitcoins so excuse me :-[ I'm getting into bitcoins essentially because I want to save money on ModafinilCat, but I'm confused about taxes. 1. If I make bitcoins by doing survey's and only use what I gain on ModafinilCat, am I liable to be taxed? 2. Is it possible that I'll go into bitcoin debt due to taxes? 3. I can't be taxed if I have a grand total of 0 bitcoins, can I? 4. Do I need to keep a fancy log or have a bitcoin tax calculator? (Considering I'll only be making purchases off ModafinilCat) Yeah yeah I'm an idiot but answer the questions anyway :-* thanks haha 1. If you have a account where you put your real name and such in, they will probably ask you to fill in your tax info when you've reached the amount that you need to pay taxes at for the year. 2. No, there are transaction fees, but no taxes on bitcoins. 3. There is no tax in the first place, so no. 4. Probably not. Title: Re: New to bitcoins - UK taxes? Post by: -ester on March 30, 2016, 12:19:29 AM Dude thanks, that's reassuring :D
Time for some more embarrassing questions: 1. What is my tax info/where do I get it from? 2. What amount is it that you start paying taxes at? Title: Re: New to bitcoins - UK taxes? Post by: g4vinshreds on March 30, 2016, 12:21:57 AM Dude thanks, that's reassuring :D Sadly, I'm in the US, so I have no clue on how to do it in the UK. Google is your friend for questions like this though. :)Time for some more embarrassing questions: 1. What is my tax info/where do I get it from? 2. What amount is it that you start paying taxes at? Title: Re: New to bitcoins - UK taxes? Post by: -ester on March 30, 2016, 12:28:13 AM Thanks for the help you've given :)
Title: Re: New to bitcoins - UK taxes? Post by: g4vinshreds on March 30, 2016, 12:36:21 AM Thanks for the help you've given :) No problem, I hope you get everything figured out and get started well with bitcoin. :)Title: Re: New to bitcoins - UK taxes? Post by: bitcointaxes on March 30, 2016, 05:04:55 AM 1. If I make bitcoins by doing survey's and only use what I gain on ModafinilCat, am I liable to be taxed? 2. Is it possible that I'll go into bitcoin debt due to taxes? 3. I can't be taxed if I have a grand total of 0 bitcoins, can I? 4. Do I need to keep a fancy log or have a bitcoin tax calculator? (Considering I'll only be making purchases off ModafinilCat) 1. Depends if it is classified as trading (self-employed income) or a hobby. Essentially, the test is "are you seeking to make profit". If so, HMRC would see it as self-employed income and it's added to you other income for taxes. If you are occasionally filling in a survey and happen to make some profit, it's sounds like a hobby. If you are a serial-survey-filler and so making a tidy sum, you are doing it for profit. 2. Bitcoins aren't taxed, but any Bitcoin income is reported as income at a pound value. So if you earned 1 BTC and you report your earnings, it would be £288, for example, or the fair market value. 3. It's possible. If you earned 100 BTC and then spent them, you still earned 100 BTC that could be taxable income. 4. I would keep records anyway, just in case. |