What are the Implications of a Salary Paid in Cryptoassets?Posted in : First Tuesday Q&A NI on 5 July 2022
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
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