HM Revenue and Customs (HMRC) has cautioned that anyone with cryptoassets must declare any income or gains above the tax-free allowance on a tax return.

Tax returns are due by 31 January and late submissions may incur a penalty fine.

HMRC said tax may be due by individuals who receive cryptoassets from employment, if they’re held as part of a trade, or are involved in crypto-related activities that generate an income.

Those who sell or exchange cryptoassets, including selling cryptoassets for money, or gifting cryptoassets to another person, may also have tax obligations.

“People sometimes forget that information about crypto-related income and gains need to be included in their tax return,” said Myrtle Lloyd, HMRC’s director general for customer services. “Some people affected may not have had to do a tax return before, so it is important people check.”

---