I don't know how it is everywhere else (pretty sure its the same in the US, but don't quote me).
In the UK, you do NOT pay Bitcoin tax .. no matter what anyone says, it simply does NOT EXIST!
OK, that said, I do get a little
when people are like "amagad pay tax pay tax!"
What you pay tax on is the amount you change into FIAT. It is simply NOT considered capital gain, or bloomin' anything else.. might as well start trying to declare World of Warcraft gold or Eve online currency (can't remember what that's called) as your 'capital gains' ..
HMRC simply does not recognize Bitcoin as taxable .. yet.
Anyway .. that said .. if you're a sole trader, nps, keep changing your btc into fiat until you hit the 'tax cap' (working in expenditure), then declare and pay your taxes, not saying anything, but ye, this part is easily 'fiddled' (legally!).
If you're a private or public company, then yes, you'll run into 'messiness' if you try to 'fiddle' a lot and pretend you're not making any profit, and this is highly NOT advisable.
It IS advisable to change some to fiat in the terms of 'profit', declare that, and personally I'd make a point of explaining btc and that I was keeping some as btc and re-spending it as btc, encouraging hmrc to think about taxing it.
It will come, eventually, and it will be a good thing.
edit: Don't get me wrong, I'd much prefer to pick and choose who/where/what I pay my 'taxes' towards. But obviously quite a few potential and current businesses don't want to get closed or locked up for tax avoidance. And it's also the same argument as those that was Cannabis legalised as a 'free for all', no taxes whatsoever.
Taxes CAN be a good thing, if they're used appropriately. I'd be happy for more nurses/doctors/hospitals/better education/better public services, etc, etc
But ye.. current governments abuse the system very badly (surprise surprise...)
In the UK, you do NOT pay Bitcoin tax .. no matter what anyone says, it simply does NOT EXIST!
OK, that said, I do get a little
when people are like "amagad pay tax pay tax!"What you pay tax on is the amount you change into FIAT. It is simply NOT considered capital gain, or bloomin' anything else.. might as well start trying to declare World of Warcraft gold or Eve online currency (can't remember what that's called) as your 'capital gains' ..
HMRC simply does not recognize Bitcoin as taxable .. yet.
Anyway .. that said .. if you're a sole trader, nps, keep changing your btc into fiat until you hit the 'tax cap' (working in expenditure), then declare and pay your taxes, not saying anything, but ye, this part is easily 'fiddled' (legally!).
If you're a private or public company, then yes, you'll run into 'messiness' if you try to 'fiddle' a lot and pretend you're not making any profit, and this is highly NOT advisable.
It IS advisable to change some to fiat in the terms of 'profit', declare that, and personally I'd make a point of explaining btc and that I was keeping some as btc and re-spending it as btc, encouraging hmrc to think about taxing it.
It will come, eventually, and it will be a good thing.
edit: Don't get me wrong, I'd much prefer to pick and choose who/where/what I pay my 'taxes' towards. But obviously quite a few potential and current businesses don't want to get closed or locked up for tax avoidance. And it's also the same argument as those that was Cannabis legalised as a 'free for all', no taxes whatsoever.
Taxes CAN be a good thing, if they're used appropriately. I'd be happy for more nurses/doctors/hospitals/better education/better public services, etc, etc
But ye.. current governments abuse the system very badly (surprise surprise...)