If you've recently received communication from HMRC regarding cryptocurrency, then it may be because you're unsure of how it is taxed in the United Kingdom and how you declare it ...
HMRC has confirmed it has been sending nudge letters to UK based investors it knows about who it believes may have underpaid any tax on their cryptocurrency transactions. The purpose is to encourage individuals to pay the right amount of Income Tax and Capital Gains Tax in a timely manner.
HMRC doesn't consider cryptocurrency to be actual money, but it does believe tax is payable on profits received from its disposal. So, if you're selling, exchanging or using cryptocurrency, then you need to pay tax.
If you do receive communication from HMRC, then you may not have made a mistake on your tax return or forgotten to make a disclosure, but you shouldn't ignore the letter.
Speak to your tax advisor before returning any information they've requested.
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