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.
Read more: The crypto tax man is calling in the UK
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.”