I hear from some people that when selling a large amount of Bitcoin and having that money hit their UK bank account, the bank has froze their money or notified them they will close their account.
Other people say they had no issues and no one has said anything.
Have you have any problems and more importantly who gave you the best rates and was the least hassle to deal with.
What you will have to deal with is the people in charge of the bank approving the money transfer. When they approve it, you have to make sure that you have enough money left over to pay for the tax...Other people say they had no issues and no one has said anything.
Have you have any problems and more importantly who gave you the best rates and was the least hassle to deal with.
Then you would have to note that in your yearly tax claim.
That's about it.
The problem shows up on my tax claim in my country. I can't by 12 Lambos and say oh I have earned them with my 3000$ sallary (I have 900$ sallary and average in my country is 450$).
They will ask how did you get it. If I say I earned on investment in crypto, they will not recognize crypto and then what. Bank statement ,,I got it from that account'' is not gonna work.
The question remains how did I earn it.
Surely if you bought '12 Lambos' directly with BTC it's got nothing to do with anyone how you got them. Once you own it/them (which you would because they take BTC payment), it's yours and how you acquire such assets does not involve anyone but you and the dealer, someone could have given you it, either way i dont think you would need to declare it! That's just the way I see it though
That's the way you see it but there's also the law where you have taxes, so you have 300$ earnings monthly and can afford a lamborghini, ferrari, 3 flats adn you're paying taxes depending on that 300$, well that you might be avoiding tax... You even have to pay taxes when selling stuff on ebay or amazon, but not many people (don't know anyone who does this) actually pay taxes for that.
Yea I see what you mean. It's not income though because technically you haven't worked for it and been paid, you've bought the coins. So if you buy a product of any value directly with bitcoin, then the only tax you should be paying is Value Added Tax (VAT) which here in the UK is included in the price of products. So if i was to buy a Lambo now with Bitcoin, would I really be avoiding Tax? I'm just trying to understand it myself
Hopefully with the way Crypto is growing with awareness and popularity, sometime in the near future we should see banks recognising the issue and providing a service for cashing Coins into Fiat. Once one bank does it they all will, the tax man can't be running around after everyone every time someone converts a chunk of coins.