Latest news with #SebMaley
Daily Mirror
03-06-2025
- Business
- Daily Mirror
HMRC warning as major new tax rules coming next year to impact millions of Brits
The tax treatment of cryptoassets such as Bitcoin can be complex. However, in simple terms, HMRC sees the profit or loss made by buying and selling crypto fall under Capital Gains Tax (CGT) HMRC to introduce new tax reporting rules next year, which are set to affect millions of Brits. From January 1, 2026, crypto exchanges and marketplaces will need to collect and report information on users and transactions to HMRC in a bid to clamp down on tax avoidance. The new rules will apply to both individuals and businesses who buy and sell cryptoassets. The tax treatment of cryptoassets such as Bitcoin can be complex. However, in simple terms, HMRC sees the profit or loss made by buying and selling crypto fall under Capital Gains Tax (CGT). Recent data from the Financial Conduct Authority suggests that around 12% of UK adults – which equates to more than six million people – now hold some form of cryptocurrency. Join Money Saving Club's specialist topics For all you savvy savers and bargain hunters out there, there's a golden opportunity to stretch your pounds further. The Money Saving Club newsletter, a favourite among thousands who thrive on catching the best deals, is stepping up its game. Simply follow the link and select one or more of the following topics to get all the latest deals and advice on: Travel; Property; Pets, family and home; Personal finance; Shopping and discounts; Utilities. From January next year, Brits will need to provide their name, date of birth, home address, country of residence, and – if based in the UK – their National Insurance number or Unique Taxpayer Reference (UTR) to the platform they use. Overseas investors will also need to provide their tax identification number and the issuing country. Meanwhile, businesses buying and selling cryptocurrency must share their business name, registered address, and relevant company registration or tax identification details, depending on their location. Platforms will also be required to report the value, type, and nature of each crypto transaction, along with the number of crypto units involved. Exchanges that fail to comply with HMRC's new rules potentially face fines of up to £300 per user for submitting "inaccurate or incomplete reports". Seb Maley, CEO of tax insurance provider Qdos, said HMRC was "casting" its net far and wide as part of its crackdown on suspected tax avoidance and non-compliance within the cryptocurrency sector. He said: "By collecting the personal information of those buying and selling crypto – along with the values being exchanged – HMRC will know how much tax should be paid on these assets. 'In simple terms, if the income a taxpayer declares on their self-assessment tax return doesn't match up with the amount reported by these platforms, HMRC has the information it needs to launch a tax investigation." If a HMRC investigation concludes that there is tax to pay on your cryptoassets that have not been paid, then Brits could face a penalty, which can be up to 100% of the tax due, as well as interest due on any late payments. Seb added: "These rules are another sign of ways HMRC is working with tax authorities globally to align on how to police compliance – particularly in fast-growing, digital industries, such as crypto and the gig economy. 'The key takeaway here is that the tax office will have even more data at its fingertips. Those buying and selling crypto need to be confident in their compliance.'
Scottish Sun
19-05-2025
- Business
- Scottish Sun
Crypto holders instructed to provide details to platforms as HMRC clamps down on tax avoidance
We've outlined what to do and how to avoid a hefty fine CRYPTO CRACKDOWN Crypto holders instructed to provide details to platforms as HMRC clamps down on tax avoidance HMRC is ramping up pressure on cryptocurrency users with the introduction of new measures aimed at curbing tax avoidance. From January 1, 2026, individuals buying and selling cryptocurrencies like Bitcoin and Ethereum will need to provide their personal information to the platforms they use. 1 In the UK, you need to report crypto earnings to HMRC because any profit you make from selling, exchanging, or using cryptocurrency can be subject to tax Credit: Reuters The move is designed to clamp down on tax avoidance and ensure that individuals and businesses are paying the correct amount of tax on their crypto dealings. Users will need to provide their name, date of birth, address, and national insurance number (or tax identification number for non-UK residents). Businesses dealing in cryptocurrency will also have to share their company information. The new regulations mean that platforms will be obliged to collect and report data on every transaction, including the amount, the type of cryptocurrency, and the nature of the transaction. This data collection will give HMRC a much clearer picture of crypto-related income and potential tax liabilities. Platforms that don't follow the new rules could be fined up to £300 per user for providing incorrect, incomplete, or unverified information. In the UK, you need to report crypto earnings to HMRC because any profit you make from selling, exchanging, or using cryptocurrency can be subject to capital gains tax (CGT) or income tax. You're liable to pay CGT on crypto when you dispose of it (e.g. sell it, trade it, gift it) and make a profit that exceeds your annual CGT allowance, which is currently £3,000 a year. The amount of CGT you'll pay in the UK depends on your income tax band. If you're a basic rate taxpayer, you'll pay 18% CGT on those profits. Four bombshell clues in hunt for elusive Bitcoin founder Satoshi Nakomoto revealed in doc - & signs he could be BRITISH If you're a higher rate taxpayer, you'll pay 24% CGT. Even with new data sharing between platforms and the tax authorities, you must still complete a self-assessment tax return if: Your total taxable gains from cryptoassets exceed the annual tax-free allowance (£3,000). You receive cryptoassets as part of your employment, but income tax and national insurance haven't been deducted through PAYE. Your total income, including earnings from crypto-related activities, is higher than the annual tax-free allowance. The latest move is part of a wider effort by HMRC to tackle tax non-compliance in the digital economy, following similar measures targeting income generated through online platforms such as Airbnb and Vinted. Seb Maley, chief executive of tax insurance provider Qdos, said: "HMRC is casting its net far and wide as it looks to crack down on suspected tax avoidance among cryptocurrency holders. "By collecting the personal information of those buying and selling crypto - along with the values being exchanged - HMRC will know how much tax should be paid on these assets. "In simple terms, if the income a taxpayer declares on their self-assessment tax return doesn't match up with the amount reported by these platforms, HMRC has the information it needs to launch a tax investigation." What is cryptocurrency? Cryptocurrencies differ from physical currencies, such as the pound. They are created using blockchain technology and part of their appeal is that they are not controlled by governments or a central bank, such as the Bank of England. It means the currency can be used to transfer wealth outside of the traditional banking system, making it easier to cross borders or stay anonymous when moving wealth. Bitcoin is the leading cryptocurrency but its rise has helped other cryptocurrencies also grow in value, such as Ethereum. In recent years, more mainstream companies and institutions have invested in cryptocurrency, and part of the recent rise in value is based on President Trump's favourable views on cryptocurrency. The dangers of investing in crypto HERE are five key risks to keep in mind when investing in cryptocurrencies: Consumer protection: Many cryptocurrency investments promising high returns are not fully regulated, apart from anti-money laundering rules. This means you may have limited protection if things go wrong. Price volatility: Cryptocurrency prices can rise and fall dramatically, making it easy to lose money. It's also difficult to reliably determine their value. Product complexity: Crypto products and services can be complicated, which makes it hard to understand the risks. Plus, there's no guarantee you can convert your cryptocurrency back to cash—it depends on market demand and supply. Charges and fees: Crypto investments often come with high fees, which can eat into your returns. These fees are often higher than those for regulated investments. Marketing hype: Some firms exaggerate potential returns or downplay the risks involved. Be cautious of flashy promotions. It's essential to only invest in cryptocurrency if you fully understand how it works and the risks involved. Remember, there's no guarantee you can exchange it for real cash, and its value can change drastically in a short time. If something sounds too good to be true, it probably is. Always double-check with a trusted friend or advisor if you're unsure. Be wary of glowing websites or perfect reviews - fraudsters often create convincing scams. For tips on avoiding scams, check out our guide. How do people invest in crypto? In the UK, you cannot invest in cryptocurrency funds through stocks and shares ISAs, general investment accounts, or pensions due to regulations. If you want to invest in Bitcoin or other cryptocurrencies, you'll need to use specialist trading platforms like Coin Bureau or PlanB. These platforms allow you to own crypto as a financial asset, though some accounts may not let you spend it. Crypto businesses in the UK must register with the Financial Conduct Authority (FCA). To check if a business is registered, visit the Financial Services Register at There's also a list of unregistered businesses at Businesses on this list may be operating illegally. If you don't want to invest in cryptocurrencies directly, you can still gain exposure to the market by investing in companies involved in the crypto space. For example, you could invest in companies that hold Bitcoin or facilitate crypto trading. A popular option for UK investors is buying shares in MicroStrategy, a US company that actively invests in Bitcoin.
Daily Mirror
29-04-2025
- Business
- Daily Mirror
HMRC rolling out new update tomorrow affecting millions of workers
CEST is an online tool on the HMRC website that determines a role's employment status. Specifically, it works out whether 'a worker on a specific engagement should be classed as employed or self-employed for tax purposes" In a new update, HMRC will " revise" its Check Employment Status for Tax (CEST) online tool for self-employed workers on April 30. The revision was announced in a tax update published yesterday, which was titled: "Tax Update Spring 2025: simplification, administration and reform summary." The document also included other measures aiming to simplify taxation and save taxpayers and businesses time, and support economic growth. The Check Employment Status for Tax Tool - commonly referred to as CEST - is an online tool on the HMRC website that determines a role's employment status. Specifically, it works out whether 'a worker on a specific engagement should be classed as employed or self-employed for tax purposes.' The update is part of the government's plan to clamp down on tax avoidance through IR35, which is a piece of UK tax legislation governing self-employed tax rules for contractors. It's designed to close a loophole in the tax system, where workers could set up a limited company structure to pay less tax. Essentially, it is a set of rules determining whether a contractor is genuinely self-employed or an employee 'disguised' as a contractor for tax purposes. There are approximately 4.5million self-employed Brits, but the self-employed are not affected by IR35. It is only those providing their services through a limited company who are affected by the legislation. According to the document, the changes will make it "easier for CEST's users to use the tool." It read: "HMRC is revising its Check Employment Status for Tax (CEST) digital tool with effect from 30 April 2025. These changes will make it easier for CEST's users to use the tool." To support taxpayers, HMRC will also publish revised guidance on how to answer the changed questions. The tax department added that it would be committed to standing behind the tool's outcomes. The document said: "To support these changes, HMRC will also publish revised guidance that offers help on how to answer the revised questions. HMRC is committed to standing behind the outcomes of this tool where it has been used correctly.' Since its introduction in 2017, the CEST tool has been used millions of times to help determine the IR35 status and employment status of freelancers, contractors, and self-employed workers. Qdos CEO, Seb Maley, noted that the government was right to revise the CEST tool. He said: "In its current form, it's a blunt instrument for determining if an individual is genuinely self-employed or should be paying employment taxes. Join Money Saving Club's specialist topics 'Changes that help users answer the questions it poses – while welcome – won't address the elephant in the room, which is that relying solely on CEST to decide employment status still poses a risk. 'Employment status can be a minefield and no stone should be left unturned when determining it. The sheer cost of getting things wrong from a tax perspective can be staggering. 'We'll await the changes, but in the meantime, it's worth pointing out that users – whether freelancers, contractors or businesses – can and ideally should get a second opinion on answers provided by CEST.'
