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. 

Copyright

© 2024 Michael Letch & Partners LLP. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
01277 655 626

Quick links

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

Address
Michael Letch & Partners LLP, 146 High Street, Billericay, Essex CM12 9DF

Michael Letch & Partners LLP is a limited liability partnership registered in England and Wales with registration number OC328815.

Michael Letch & Partners LLP is also regulated by the Financial Conduct Authority to carry out specific activities and investment advice (registration number 112064).

The term ‘Partner’ is used to refer to a member of Michael Letch & Partners LLP. A list of members is open to inspection at our registered office at 146 High Street, Billericay, Essex, CM12 9DF.

Michael Letch & Partners LLP is registered as auditors in the United Kingdom by the Association of Chartered Certified Accountants