Hi everyone,
I’m fairly new to the crypto arena and currently hold a small investment that stays below the CGT threshold. After running some figures on a tax tool, I discovered that staking rewards fall under the category of income tax. In the fiscal year 2023-2024, I received £3.98 from staking. Does this mean that this reward was subject to income tax? I appreciate any insights you can share on this matter.
hey, im not entirely sure but hmrc might still consider even tiny gains as income. its all a bit murky though so def worth checking with a tax pro.
hey guys, i’m really curious about this topic as well. from what i gather, even if your crypto staking reward seems tiny at only a few quid, tax laws in the uk can still consider it as taxable income. i mean, it kinda makes sense that any profit you make, no matter how small, should be accounted for, but it also feels like there could be some thresholds or exemptions in play. i’m no tax advisor by any means, though – have any of you had any consultations or looked into detailed guidance from hmrc? perhaps there’s an official stance or a nuance there that we haven’t come across. does anyone know if the treatment of staking rewards as income cashes out differently when it’s a really minor amount? really interested to hear what you all think…
Based on my experience dealing with small-scale crypto transactions, it appears that even modest staking rewards can be classified as taxable income. Although your gains may seem negligible, HMRC tends to view these earnings as part of your overall revenue, irrespective of the amount. This means that the tax obligations on your staking profits might still arise even if the value is below the typical capital gains threshold. It is advisable to maintain accurate records and consult with a tax professional to ensure compliance with HMRC regulations.
hey, i’ve been pondering this too. it seems to me that even those small amounts could technically be counted as income under hmrc rules, despite being really minor amounts. i mean, theyll want every little bit declared, right? but then, i also wonder if there’s some pragmatic cut off or enforcement where they might not bother with these tiny sums. has anyone seen any official hmrc guidance or example cases on this? i’m really curious if others have had a similar experience or maybe even a chat with a tax expert about it. also, how are you guys tracking your crypto gains if it’s such small amounts? would love to hear some more on how everyone is handling it!