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Crypto Contractors be Warned – HMRC Are Coming

If you are a contractor who accepts crypto currencies such as Bitcoin for your hard work, then make sure you declare it to the tax man.

The reason? Because just like any other form of payment like cash, cheque or Paypal – you need to pay tax on your earnings.

Up until now it might have been easy to hide your crypto currency payments from HMRC. But in the future it will become harder and harder, to the point where HMRC are really going to be cracking down and handing out fines.

It has just been confirmed by HMRC that they are working with many crypto currency platforms in a bid to find out who is taking the Michael.

If you are one of the contractors taking the Michael, and you are hiding from your tax duties, then be rest assured that HMRC will eventually find out about it. It might not be today, and it might not be tomorrow…but they will get you.

Getting paid by clients in Crypto Currencies such as Bitcoin has become more and more popular in recent years, with some contractors and freelancers who only get paid this way.

Many experts are saying Crypto Currencies are the future and that in 20 years everybody will be paid like that. Who are we to argue with the experts? In fact, it could even be sooner than 20 years if you ask us.

Just like with any technology there are loopholes just waiting to be exploited, and it is crafty contractors who have been exploiting those loopholes so they don’t have to pay the tax man.

Well, it looks as though the game is up because HMRC are now hot on your trail and ready to pounce.

For example, The Crypto Exchange recently admitted they have been asked by HMRC for names and addresses of UK residents who have moved money through the sites between 2017 and 2019.

So don’t be surprised if HMRC come knocking at your door at 5am on a cold Winters morning, hoping to catch you with your pants down.

If you don’t want to be caught with your pants down then may we suggest you hire a contractor accountant.

The top contractor accountants know everything there is know about crypto currencies and they can tell you exactly what you have to declare and what you don’t.

With a contractor accountant in your corner you will never have to worry about getting a knock at your door at 5am. You can sleep peacefully and soundly, safe in the knowledge you have done nothing wrong.

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