The United Kingdom tax authority stopped unpaid crypto taxes

The UK taxman has launched a new voluntary disclosure process for people with unreported crypto profits. Following a recent crackdown on corporate tax evaders, HM Revenue and Customs requires the public to report income from crypto exchange tokens (NFTs) and utility tokens.

This disclosure follows an earlier program to disclose non-crypto taxes in the UK. The UK government has previously estimated that between 55% and 95% of cryptoholders may be breaking tax laws.

Crypto taxpayers should seek advice.

Some advisers say taxpayers should get advice before using the disclosure. Due to the complex nature of crypto taxes and the fact that many years of value may remain unpaid, expert advice should be obtained. For example, it may not be clear to crypto holders which crypto asset activities have generated taxable profits.

Read more: How to Reduce Your Crypto Tax Liability: A Comprehensive Guide

Daniel Howitt, head of crypto tax software provider Recap, said that crypto investors can take advantage of this opportunity before the tax authorities have better information. Richard Jones, senior technical manager for policy at the ICAEW, said the property sector's rapid growth had seen regulators play a role.

Read more: Final US Crypto Tax Guide for 2023

Sunac Targets Crypto Evaders Despite Tax Cuts

British Prime Minister Rishi Sunak recently introduced a series of tax cuts to encourage investment in the UK. Individuals could also see a significant reduction by putting about $570 into their bank account each month, Sunak told Bloomberg's Francine Laqua in a recent interview.

But at the same time, the government is trying to control the evasion, especially around the crypto tax. In May, the government considered giving HM Revenue and Customs the power to seize digital assets in the wallets of corporate tax raiders. He said he would discuss with bag suppliers how to achieve this.

The government recently announced that it will require customer information from crypto exchanges starting in 2027. These records will give the government more insight into crypto spending habits, if their requests are within the scope of the law.

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