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Posted Thu, 02 Nov 2023 12:57:23 GMT by robert lea
Hi, if I am paid in crypto as an income how do I calculate the GBP value of the crypto since there is no provided conversion rates, note I may not dispose of the crypto token, can I estimate the value in GBP when first receiving? if I dispose of the crypto as soon as receiving it can I use this value after any fees in the exchange?
Posted Fri, 03 Nov 2023 10:10:05 GMT by HMRC Admin 25
Hi robert lea-kime,
Have a look at the guidance on crypto assets at :
Check if you need to pay tax when you receive cryptoassets
They tell you what records to keep and how to declare.
Thank you. 
Posted Fri, 03 Nov 2023 10:23:51 GMT by robert lea
thanks, I've already read this and it does not cover what I'm asking as I don't have an employer, I'm a sole trader contractor providing services for income paid in crypto. This guidance only covers if an employer pays you. "If they pay you in tokens, they’ll estimate the value of them, and pay Income Tax and National Insurance contributions based on the estimate" And does not state how to estimate the value of them? So can I use the value when receiving and then disposing of the token after fees and exchange?
Posted Fri, 03 Nov 2023 11:57:33 GMT by HMRC Admin 25
Hi robert lea-kime
The portion of your income, given to your wife is still your taxable income, which you have to declare in your tax return.
You are taxable on all of your income, even if you give some to your wife.
Thank you. 
Posted Wed, 08 Nov 2023 15:30:28 GMT by HMRC Admin 20
Hi robert lea,
HMRC considers foreign currency to be an asset and any gain from the exchange of currency is chargeable to capital gains.  
If your total gain exceeds the annual exempt allowance, you have until 31 December after the end of the tax year to declare the gain using the realtime transaction service at
Report and pay your Capital Gains Tax.  
Reporting after 31 December must be in a self assessment tax return, which should be in the possession of HMRC before 31 January, when any outstanding tax should also be paid.
Thank you.
Posted Wed, 08 Nov 2023 15:40:49 GMT by robert lea
thanks for the last response however it does not answer my question and I have read the guidance that also does not cover what I'm asking; If a sole trader, contractor (not employee) is paid income for services by their client as income in crypto how do we calculate the GBP value of this transaction? Can I use the value when selling the crypto if I sell as soon as I receive the crypto allowing for any fees in the sale?
Posted Fri, 10 Nov 2023 07:34:27 GMT by HMRC Admin 25
Hi robert lea,
Please refer to on how to value the crypto. if selling straight away this would be seen as capital gains and fees would be deductable against the gain.
CRYPTO23000 - Cryptoassets for individuals: valuation
Thank you. 
Posted Fri, 10 Nov 2023 08:05:54 GMT by robert lea
sorry but you still have not given an answer to what I'm asking. I'm trying to work out my income for income tax which I'm pain in crypto, how do calculate the value of it in GBP. Capital gains would be the value increasing after receiving but again how do you calculate the starting price when first received. I just need to know if I'm ok selling the crypto as soon as received and then using the final sale value in GBP for my income tax after allowed fees in the sale?
Posted Tue, 14 Nov 2023 11:28:51 GMT by HMRC Admin 5
Hi robert lea

Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal or crypto currency conversion.  
For this reason, we can only point you in the directions of potential exchange rates you can use.

Thank you
Posted Tue, 14 Nov 2023 11:40:28 GMT by robert lea
Hi, thanks so if I use the final sale value of the crypto in GBP after any exchange fees and if I sell the crypto the same day as it is received. I can't see any alternative way of calculating this as its price varies so much and there are no monthly official rates of exchange given like you provide for foreign currency. Please let me know if this is acceptable.
Posted Tue, 14 Nov 2023 14:30:59 GMT by HMRC Admin 17

Hi ,
Yes that will be acceptable and you should provide this as a calculation for working out any gain due .

Thank you. 

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