The Association of Taxation Technicians have warned individuals of the approaching time limit to register for self-assessment for the first time, specifically reminding people that profits and gains made on cryptoassets will need to be disclosed and tax may be due.
It is also worth considering whether losses could be reported to mitigate tax paid on other income or gains.
Individuals will need to consider (and HMRC will presumably be very interested to know) whether they are trading or investing in cryptoassets, the former being subject to income tax rather than capital gains tax and therefore taxed at a much higher rate.
Given the increase in value of cryptoassets and their popularity in recent years, it will be interesting to see how much revenue HMRC make from cryptoasset taxation and what active steps they may take to ensure compliance if they believe there is a under-reporting of liabilities.
Individuals also need to keep clear records of the different types of token that they hold. Many people believe that gains only arise when cryptoassets are exchanged for currency such as sterling which is legal tender. In fact, it is possible for a taxable gain or loss to arise when exchanging one cryptoasset for another.