What are the Implications of a Salary Paid in Cryptoassets?

Posted in : First Tuesday Q&A NI on 5 July 2022
Chris Fullerton
Arthur Cox NI
Issues covered: Pay; Cryptoassets; Minimum Wage

Cryptoassets, such as bitcoin, are an increasingly popular form of payment. HMRC refers to exchange tokens, utility tokens, security tokens, and stablecoins as types of cryptoassets. Although Cryptoassets are not subject to any special UK tax rules, wages received in the form of cryptoassets constitute money’s worth and are therefore subject to income tax and National Insurance contributions. For the purposes of PAYE, HMRC’s view is that exchange tokens like Bitcoin will generally be readily convertible assets. As a result, employers should value Cryptoassets paid to employees using their best estimate and then subject it to the appropriate PAYE deductions.

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Back to Q&A's This article is correct at 05/07/2022

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Chris Fullerton
Arthur Cox NI

The main content of this article was provided by Chris Fullerton. Contact telephone number is 028 9023 0007 or email Chris.Fullerton@arthurcox.com

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