UK crypto traders could face £900 fine if they don’t file taxes this month

The UK’s tax authority has issued crypto traders a polite reminder that they face a fine of up to £900 ($1,146) if they fail to submit a self-assessment tax return detailing their trades.

In its reminder, His Majesty’s Revenue & Customs (HMRC) reiterated that taxes are due when traders receive crypto from employment, either as part of a trade or via income from crypto-related activities.

It also details how traders may be obliged to pay tax when they sell their crypto for fiat, swap it for other cryptos, or gift it.

With use of cryptoassets growing, HMRC is urging people to avoid potential penalties and check if they need to complete a Self Assessment tax return this month.

News release here: https://t.co/voFvydaqVx
— HMRC Press Office (@HMRCpressoffice) January 9, 2024

Traders have until January 31 to file their returns and failure to do so could see them incur an immediate £100 ($130) fine. However, if they fail to comply within a further three months, they could incur daily fines of £10 ($13) up to a maximum of £900, and even lose 5% of the amount owed or £300 ($380), whichever is the greater.

HMRC’s director general for customer services Myrtle Lloyd said, “People sometimes forget that information about crypto-related income and gains need to be included in their tax return. Some people affected may not have had to do a tax return before, so it is important people check.

“With the Self Assessment deadline just a matter of weeks away, I am urging people not to put off completing it.”

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