British authorities have begun sending out crypto tax payment notices

HM Revenue and Customs (HMRC) has issued a notice to citizens of its intention to “strengthen tax controls” against sellers and holders of cryptocurrency assets..

At the beginning of 2024, more than 8,000 reminder letters have already been sent to individuals suspected of evading capital gains tax on cryptocurrency assets.

Over the past three years, employees of the supervisory department have collected and systematized data on UK tax residents making transactions on cryptocurrency exchanges. Now HMRC is using the accumulated information to prepare applications, recommending that everyone voluntarily check whether they have correctly calculated and paid the state for transactions with crypto assets.

“Tax non-compliance may arise because crypto investors may not know whether they are required to pay taxes on income from their digital assets or not.. HMRC is prepared to provide leniency in the short term, for example through a voluntary disclosure mechanism. However, this practice is unlikely to continue for long. Taxes must be paid on time. Otherwise, crypto investors will face large fines,” officials warn..

Earlier, the UK Treasury announced that King Charles III had signed a bill aimed at “restoring control over the financial services code” and recognizing cryptocurrency transactions as a regulated activity.. In turn, the country's tax service demanded that British crypto investors voluntarily pay off tax arrears for four calendar years from the date of filing the last income tax return.