- HMRC says that none of the cryptocurrencies has earned the status of money.
- Businesses and individuals mining, buying or accepting crypto as payment must be tax compliant.
Her Majesty’s Revenue and Customs (HMRC), the body in charge of tax collection and regulation in the United Kingdom has come up with new guidelines regarding cryptocurrencies and tax payments.
The regulator does not consider any of the current cryptos to be money. Therefore, both businesses and individuals that transact, mine, buy, or accept digital assets as payment for goods and services are eligible to pay one or two forms of taxes.
Some of the taxes to be paid include income tax, capital gains tax, corporation tax and stamp taxes. The HMRC said that it will not rely on theory alone when dealing with the fast-moving crypto sector. Instead, it will watch the sector keenly.
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