HMRC crypto-asset letters | are you being nudged?

Jan 24, 2022
Aaron is one of our tax partners, Aaron specialises in R&D Tax Relief, VAT, Trusts, Corporate Tax, Business Tax and Capital Gains Tax.

Are you being nudged?

In November 2021 HMRC began sending letters out encouraging UK domiciled individuals to pay income tax and capital gains tax (CGT) on income and gains arising from crypto-asset holdings.

If you have received one of these ‘nudge’ letters you must act upon this. Letters are usually sent to individuals they deem a cause for concern, i.e. when your tax affairs don’t appear to be in order. HMRC may take further action if you don’t respond in receipt of the letter, it is important to be totally co-operative to protect yourself from failure to notify penalties.

Nudge letters could be used as a push in the right direction, giving you a chance to seek expert advice on the effects of investing in crypto-asset holdings. There are a number of complexities to crypto-asset holdings which you could unknowingly fall into the trap of, effectively initiating unintentional tax liabilities.


How can we help?

At Hawsons we have a dedicated team of tax experts at our Sheffield, Doncaster and Northampton offices. Our understanding of the complex issues with crypto asset holdings allow us to provide you with informed tax advice.

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Aaron Hemmington

Tax Partner, Northampton

Related content

Succession Planning for Farms

Have you thought about succession and the long-term plans for your family farm? As agriculture makes up the highest concentration of family businesses passed through the generations, it is no surprise that succession is a key issue and is something farmers need to...

UK company size thresholds to increase

To cut complexity and burdens from legislative reporting requirements, the thresholds for company sizes in the UK are being increased by 50%. Following the Spring Budget, it has been announced by the Prime Minister Rishi Sunak that the company size thresholds will be...

The tax year ends on 5th April each year, why is this?

Well you can blame the Romans, especially Julius Caesar and Europe. Back in 1582 the Pope Gregory X111 commanded the change from the Julian calendar as there was a problem.  It ran for 30 or 31 days for 11 months and it was only February that had 28 days (29 every 4...