Question Crypto taxation in the UK

[CryptoHack]

Hi everyone.

I wanted some legal/tax advice in the UK. I have cryptocurrency to which I don't have any proof of origin, this is because for a long time I have conducted software development services and got paid in cryptocurrency - never documented anything, declared anything, or created any sort of invoices - I really believe in privacy and I assume that in the worst case, I can't convert it to FIAT. Could someone shed some light on what are my options or thoughts?

I have exchanged crypto for cash before but I'm past the point where cash is useful (I can't even pay for rent in cash), I'd like to have a solid long-term plan to cash it out. I wouldn't mind paying tax but I believe HMRC will be asking for proof of origin on the funds, at which point I can't really help them.

Thanks.

 

[CaptK]

Depending on what space you are in you could cash out for fiat on a paid services base, it will mean invoicing for work and or consultancy.
Then you can monthly/quarterly you can cash crypto like you are on a retainer.
There are some sellers who will sell you a property or a company with crypto. There has been a few apartments bought with Crypto in Knightsbridge and Mayfair.
Last option is to go abroad cash out there and the slowly bring it back in and pay some tax on it so as to not receive unwanted attention.

 

[CryptoHack]

Depending on what space you are in you could cash out for fiat on a paid services base, it will mean invoicing for work and or consultancy.
Then you can monthly/quarterly you can cash crypto like you are on a retainer.
There are some sellers who will sell you a property or a company with crypto. There has been a few apartments bought with Crypto in Knightsbridge and Mayfair.
Last option is to go abroad cash out there and the slowly bring it back in and pay some tax on it so as to not receive unwanted attention.

Thanks for your response. I have tried the first one, although I've gotten charged about ~8%, is this the norm?

The only problem that I find with this approach is that my actual employer contractually owns any intellectual property that I produce (even outside working hours), so I would assume that if my employer found out about this, they wouldn't be happy at all - am I overthinking it in that regard?

Can you elaborate on going abroad and cashing out there? Are you referring to opening a bank account in another country?

Cheers.

 

[sinos]

Do you wanr ro pay tax? If yes, form a company, create an ecommerce store that accepts Bitcon/crypto as a form of payment (best would be selling VPN/webhosting) and pay yourself bitcoin. Before using bitcoin, exchange it with Monero, so that there are no trace/link with your existing wallet. Use VPN always. Bitcoin ledger records all the ip addresses. Make sure the coin should not be linked back to you. Cash out bitcoin through an exchange preferably Kraken, Kraken will ask you for KYC.

You can also use prepaid cards and pay yourself through Paypal. Buy prepaid cards with Monero.

https://www.offshorecorptalk.com/threads/bitcoin-cash-out-strategy.30340/post-147867

 

[CaptK]

Thanks for your response. I have tried the first one, although I've gotten charged about ~8%, is this the norm?

The only problem that I find with this approach is that my actual employer contractually owns any intellectual property that I produce (even outside working hours), so I would assume that if my employer found out about this, they wouldn't be happy at all - am I overthinking it in that regard?

Can you elaborate on going abroad and cashing out there? Are you referring to opening a bank account in another country?

Cheers.

Upto 10% is the norm, some guys are a bit more expensive because they cover you with solid contracts from companies who have massive turnover.

There is only 2 people that know and it doesn't benefit either to talk.

You can have a pre arranged meeting where a seller, due to his relationship with the bank can open you an account. He will be your referer and he opens your account with the exchanged funds. That then gets round source and history of funds.
This will also allow you to bring the funds back using various vehicles which can help you to mitigate tax.