HMRC issued a statement advising individuals that they will soon issue “nudge” letters to address crypto asset holdings.
These “nudge” letters have yet to be distributed, but City A.M. spoke with Zoe Wyatt (partner and specialist in crypto-assets at Andersen UK).
Wyatt stated that these nudge letters were likely to have been sent automatically to all those who have bought or sold crypto, regardless if they have received their tax and reporting payments.
Wyatt stated that this will alarm delinquents, but not cause wholesale disclosure. He said it would be an alarm for those who aren’t paying attention to HMRC’s powers to obtain information and the tax obligations of account holders on crypto transactions.
Wyatt stated that HMRC will likely have limited resources to open inquiries into taxpayer account information. However, they would be able to collect more underpaid taxes and ensure compliance if they created a crypto tax amnesty.
“Those who ignore a nudge note now go from careless to deliberate. The consequences are maximum penalties and possibly criminal prosecution.
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