Tax letters that are to be sent to crypto investors

hm Revenue & Customs plans to send crypto investors to send letters in which they are asked to check whether they have paid the right tax.

The message of the letters that still have to be issued was published on Wednesday by Cryptouk, a trade association, reported accountant.

HMRC announced Cryptouk that it follows a "pedagogical approach" when publishing the letters. In addition, she added her goal to emphasize areas "whose people may not be aware of whether they are considering whether they have to pay taxes".

"If you receive a nudge letter, this does not necessarily mean that you have made a mistake in your tax return, but you have to make sure that you answer the HMRC correctly," says correspondence.

The letters are used to encourage cryptocurrency investors, check whether they have paid the correct amount of capital gains tax (CGT) and in some cases the income tax on their crypto stocks.

"In our view, it is fair to say that most of the outpasses are not due to deliberate evasion, but rather to ignorance," said Zoe Wyatt, partner and specialist for crypto-assets at Andersen UK, an auditing company.

she warned persons who received the letter not to ignore it, as this would probably be seen as a deliberate act of non -compliance by the authority and would lead to higher punishments.

However, other tax experts said that the development was a sign that the HMRC is trying to act against a possible circumvention or avoidance by some crypto investors.

"It is likely that HMRC is of the opinion that large amounts of CGT and income taxes from cryptocurrency investments for tax purposes were not declared. In some cases, this could be a criminal tax evasion," said Graham Boar by Uhy Hacker Young, a business auditor

"HMRC suspects that thanks to the rise of cryptocurrencies there is more and more hidden wealth. Many small investors in cryptocurrencies have the misunderstanding that the HMRC is unable to find out its crypto investments and the profits they may have achieved."

The HMRC has used its powers to collect information to request lists of stockings in recent years.

The tax authorities also include data about crypto investors to the information that they collect across borders. This year, confirmed that GHerson Solicitors' freedom of information, a law firm, confirmed that the HMRC had used its powers to collect information about crypto investors in and outside the United Kingdom for the 2017/18 up to and including 2019/20. The details included the names and addresses of the investors and the value of the crypto assets.

The HMRC said that she wanted to help people get their tax matters in order.

"We regularly carry out activities to clarify customers who may need help. Our letter calls on the owners of crypto-assets to check their transactions to ensure that they are declared correctly," he added.

Cryptouk was asked for a comment, but did not answer immediately.