I am a sole trader and have decided to hire my spouse as a contractor to help with my work, paying them a fixed monthly amount.
Is there anything I would need to evidence when filling this as an expense in my self assessment? Given my spouse would declare this income on their self assessment return also and I have a signed contract agreed.
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.
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?
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?
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?
Thanks, just to clarify again as the previous reply stated I need to declare the income in my tax return, is this declared differently as it would have been gifted to my spouse in my example so not subject to income tax. How is this declared in the self assessment please?
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?
To clarify this, If e.g I am paid income in crypto with value £6000, I gift this crypto token to spouse, my spouse then disposes of the token for £6000. Am I correct in liabilities being; £0 income tax and £0 capital gain for myself £0 income tax, £6000 capital gain for my spouse? I recently asked this via twitter to HMRC and they confirmed the above was correct, please see; [admin removed link] Can you confirm here too please
I am paid for work in crypto and invoiced in usd.
Am I allowed to gift any crypto to my spouse to use their capital gains allowance or would I have to pay income tax on this?
If I do need to pay income tax how do I calculate the value?
I am paid income in USD and I have expenses paid in USD.
How am I allowed to calculate the conversion to GBP for both income and expenses?
I have read you can use the spot price, monthly average or yearly average price. Can I choose which I use? Can I use a combination of these across different transactions as the monthly average me be higher than the spot for example.
And can I choose to use my bank conversion rate paid when converting from GBP to USD and vice versa?