Hmrc crackdown on anyone who buys or sells cryptocurrency

HMRC is rolling out new regulations targeting cryptocurrency, with sanctions focused on preventing tax evasion among UK households. Starting January, HMRC, also known as the Labour Party

government's taxation branch, will require crypto buyers and sellers to submit five specific details as part of an intensified effort to clamp down on tax avoidance. Crypto investors

are obliged to provide their full name, date of birth, residential address, country of residence and National Insurance number. Furthermore, those offering cryptoasset services must gather

data regarding the value, type of cryptoasset, nature of the transaction, and units involved, reports Birmingham Live. HMRC has issued a warning: "You'll need to verify that the

information you collect is accurate by carrying out due diligence. We'll update the guidance with information about how to do this in due course. There will be penalties of up to £300

per user for inaccurate, incomplete or unverified reports." Seb Maley, CEO of Qdos, a company specialising in tax insurance, commented that the new rules will necessitate crypto buyers

and sellers to be "confident in their compliance". He remarked: "HMRC's casting its net far and wide as it looks to crack down on suspected tax avoidance and

non-compliance among cryptocurrency holders in the UK." "By collecting the personal information of those buying and selling crypto – along with the values being exchanged – HMRC

will know how much tax should be paid on these assets. "In simple terms, if the income a taxpayer declares on their self-assessment tax return doesn't match up with the amount

reported by these platforms, HMRC has the information it needs to launch a tax investigation." When you sell off cryptoasset exchange tokens, commonly referred to as cryptocurrency,

there may be a requirement to pay Capital Gains Tax. This tax is due when your profits from selling specified assets exceed the tax-free allowance. It's worth noting you could also be

liable for other taxes if you happen to receive cryptoassets.