Just got off the phone with him and he gave the go ahead providing I kept his name out of it.
-----------------------------------------------------------------------------------------------------
Thank you for your phone call earlier today.

I did some research about Bitcoins and the way it works. Here are some very important points you should consider:

Legal point of view:
I believe Bitcoins is legal mainly in several states in the USA (not all of them). It is not officially legal in the UK. I would even add and say that it is frown upon in the UK by both HMRC and the police.

The main reason for it being frown upon is because (as you mentioned earlier) any individual can hide behind a reference number with no name, address etc… the British authorities are very concerned about this relatively new online system and here you are digging into complex rules under the crime act, money laundering and terrorism funding.

You might get a knock on your door in future from the police or other body asking you to prove that you are not funding any terrorism or crime activity. This is how serious it is.

Although there is a big potential within this concept, looking at the above points, it is my job to warn you of the complications with the law you might have.
I strongly believe that it is only a matter of time until the UK government will come up with a law against it but as you probably know these things take time.

Terribly sorry if this is not the answer you were hoping for.

Tax point of view:     
As Bitcoins are not officially illegal and I can’t stop you from trading, this is how we should treat the income:

•   This is a matter of capital gains rather than normal profit and loss as you are selling items of value (investment through coins).
•   There is an annual exemption of £10,100 for an individual – this will be deducted from your profit before calculating your tax due.
•   Capital tax is calculated at 18% from the net gain (sale proceeds less costs of sales).
•   I believe that under costs of sales we will also be able to claim the electricity your computers use
•   As long as you did not sell the coins into actual cash there will be no tax implications needed.
•   You should keep records of your income as well as the costs you have incurred during the procedure of mining the coins you sold.

I think this covers pretty much everything.

Please let me know if there is anything else I can help you with.

Kind Regards,

Thanks for the reply ribuck and having also chatted with a few friends of mine (showed them the email) we in the end all came to the same conclusion that my accountant had actually done the right thing and actually worked out a good solution.

I didn’t know he was obligated to report me to the authorities:-\    thanks for the info.

Will request permission to share the email today and I really hope he gives the go ahead. I believe in respecting trust so if he says its not ok no amount of nudging will tempt me to post it.  .

Right well thanks heaps for the support and let’s hope I don’t end up a test case.


On to the next hurdle for him when I sell my first solar system in bitcoins
 lmao.
Poor guy.

As someone investing in this I’m expecting plenty of ups and downs but I have a nice exit strategy and I’m not risking what I couldn’t afford to loose.

Could call it a gamble but everything points to me having better odds than I would down the casino lolz.

So over all Yes I expect a rise as the vendors mature and multiply.

Don’t forget the wildcards such as hack's, massive scams, new laws and the media that can all have a shock effect on the market.

But hey I have zero formal education in this so get reading the economic threads.

I hope we keep them. This is the first forum I have been on that had this and it set the tone from the start.
Can only be a good thing and will ease the pain of our Mods.

Also makes you consider your posting a little more thus adding credibility to the community (in my eyes anyway).
.

This is the linky your looking for


http://bitcoincharts.com/markets/bitmarketEUR.html
EDIT: SOrry its  this link doh


Hope this helps you.

Be aware its possible to scam with paypal (im told).


Lets say you pay me 12 eurosfor 1 bitcoin.
I then see the payments gone thu then I send you the bitcoin.
You ring paypal later on and say "He didnt send me it waaa and they refund you becuase they have no idea what to do with bitcoins etc yet.

So wire is the best way I think but thats just my advice.


Going to try and scam my freind out of 1 bitcoin some time to see if this is in fact true. ( will just get him a few pints to make up for it)

I agree you can linky people to good info but some are just closeminded and its pointless.

OK forget what I said a few post up. I have run into a string of people who are perfectly happy with the banking system no matter how I put it to them.
I either just failed bitcoin a little or I just ran into some real idiots.

Apparently bitcoin is for nothing more than getting hold of child porn.

Just cant facepalm hard enought right now.

Care to enlighten me? Did I miss somthing ?

+ 1 sir

Hence me voting ...well not voting but posting a few up.
Immanuel Kant seemed to me to have a good handle on things but I dare not attempt to quote him just in case I mess it up. He might see this thread and be like wtf man..yes I do know he's dead

Might have to dig that book out. Was along the lines of you cant prove god exists and nither can you disprove it so just let peeps get on with it.

    Knew i would end up butching his work.

Thanks bitplane will take your advice have been using britcoin anyway and the guy who runs it is doing a cracking job    .

Guess I let myself get a bit worked up over it.

Lol now just wait for me to be the first numpty to get taken in for questioning.

Strange everyone I have told about it its really interested in it. Even looks like I'm going to be running a miner for mum bless her and a few mates.

Either Im epic good a selling stuff, my freinds all have more than 2 brain cells (not totaly sure on this) lolz or could it be they all Hate the banks that much that this is just too good to ignore.

Anyway I have said ffs dont go droping your savings on this go read about it.
Also told them its high risk <---no idea tbh but that how i see it and would hate to give a freind bad advice.

Also advised them that mining might be the safest route as at least they have a gaming PC should it all come crashing down.

Dude thanks man will try trix.

Thing is I kinda got set this task by my m8t to see what I could get out of this setup in windows and how stable it was befor he commits to applying some fancy linix to the next one so we have something to compaire it to.

Gota say its a fun project and one we plan on rolling out big time once we have found the right route to take.

Please enlighten me because I really dont get that

pinjas ow thanks for that.

Damit why hasn't amazon got with the times so I can buy it in bitcoin.

@ evileric.   

Hmmmm ok first I’m not here for any sort of financial advice.

Second my accountant having finished covering his back then went on to explain the tax implications etc. and to be fair to him did a rather nice job on that side.

I can understand your anger believe me however I think you missed my point which can only mean I failed to communicate sufficiently.

It’s the fact that HRMC and the Police are taking a rather dim view of the use of bitcoins (NOT ILLIGAL) that’s getting to me really.

I have worked my ass off for this Government In both the military and then for a short time in the police force. Now as I look back upon myself all I see is a blind tool of oppression.

Yes I got paid and it was a job but I was born with my eyes closed and I’m ashamed to say It's taken me this long to start to understand what kind of machine I live within.

I know the kind of pressure my government can place upon a person and as I too often heard "everyone’s guilty". 
Is it that everyone is in fact guilty of something and you can't move thought-out your life abiding all these law's. Well that’s what the police over here count on I have seen it with my own eye's.


Best advice so far and again I thank you for it rage I shall record everything.

468 x 60     yea that would work for me 

Now where did I put photoshop.

Can you add : Agnostic Atheist   ?

Cos then I can vote too 

Thanks  rage 

Right so im going to start keeping detailed records of my Bitcion Income.
Not going to let the system scare me off this.

Anyone else about with any legal advice or ways I could protect myself.

Donated my little bit. All add's up I guess. Right im outa here b4 more talk of cannibals that creaps me out a little.

Hope im in the right place I'm new to the forums and just got My JR Status \0/


So I have UK based Limited company its small but I’m building it up with hard work.

Anyway it results in me having spare power so I'm investing in mining rigs to help me out with cash flow as I’m starting out. <---- That and I love the bitcoin dream and want it to change the world but that’s for another thread.

My accountant just told me to expect a visit from the police and be prepared to prove that I’m not funding terrorism. That’s not cool because our UK terror laws could totally ruin my life (god knows how they got those laws even passed).  

So this is the result of being upfront, honest, transparent and preparing to pay tax's on my bitcoin income?

I'm not allowed to copy his email here unless he gives me permission so will seek that next week and see if I can post it here.

Just wanted some views on this from other UK residents really.




EDIT: for speeling im horribad at it.