Bitcoin Forum

Hi,

I'm in dire need of an accountant that genuinely understands the current HMRC position on bitcoin.
I talked to a few and none of them understand it and therefore will not comment on it (understandable).

The questions I'd like to cover are relating to a situation where 100% of your income is in BTC - in which case you're bringing large amounts of FIAT to your bank account via an exchange yet hold no official work activity.  I'm looking for someone who can offer authoritative advice on the matter.

Does anyone know a firm that I could contact?

There would have to be a law that governs what you are talking about. If there is no law or its still a very grey area, no accountant can legally give advise to you.

You would honestly be better contacting HMRC directly. They may help you directly or put you in touch with someone. At least you will have some idea where you stand by contacting them and keep all correspondence with them so you can *show* that you are trying to genuinely do your accounts right.

There are no "bitcoin accountants" in the UK at the moment AFAIK. But if there are, the government may be able to help you.

I know I'm coming across as "aren't the UK government cool" - its not my intention at all. Just that in this case, its better to go straight to the horses mouth, and if the horse doesn't speak, you can show you've done nothing wrong. If there is no law, you can't be breaking it.

Here is another vote for talking to HMRC - if they don't know the answer, then nobody does!

I understand this is an old thread, but can anybody add anything to update this? I've been trading on LBC for a few months, & need to put my Tax-return together. From what I've read so far, it seems that income from trading BTC to £ Sterling attracts Income Tax, (with the sale of the bitcoin being the "taxable event") but has now been ruled exempt from Capital-Gains Tax.

Holding no official work activity? is this at your end or the place you are getting paid from?  It is not hard to follow the rules from HMRC. Just become VAT registered if you are wanting to claim taxes back though what you are paying out and claim your expenses back. If not then just file your tax return at the end of the year and keep track of all your incoming, outgoing, costs etc.. Personal Allowance is £10,600 Per year. If you are earning under it then you got no tax to pay but I would still show the income to HMRC so you can cover your tracks in the event of HMRC asking you questions or if not submitting id just declare all earnings and have no worries about it in the future. Anything above your personal allowance is taxed at 20%. If you exceed £31,786 then you will pay 40% tax total fucking joke for HMRC to double up your tax but hay ho that's the tax man for you. I would only expect to pay Capital-Gains Tax if over the personal allowance  and if under then you are tax free and no need to worry.

If you are as say 100% BTC income then its just a matter of working out your total income if exceeds your personal allowance then you will need to pay tax on it and just submit tax return. If want claim expenses like VAT then id look at becoming vat registered and it is simple enough to do. Then you can have fun doing tax wright offs and making claims to get back :)

So if the supply point is the conversion to fiat currency. If you don't convert, but just spend the bitcoin, is there no supply, and therefore no tax?