Cryptoassets (which might also be referred to as 'tokens' or 'cryptocurrency') are cryptographically secured digital representations of value or contractual rights1.
This article discusses the income tax and NIC treatment where an individual receives cryptoassets in the course of their employment. For details of situations in which the individual might be subject to capital gains tax on disposal of the cryptoasset, see C6.117.
For the definition of cryptoassets and cryptoasset transactions, see C6.103–C6.104. For a glossary of key terms associated with cryptoassets, see C6.102.
Employment income received in cryptoassets
Receipt of cryptoasset tokens from an employer in connection with an employment are earnings as they are 'money's worth' under ITEPA 2003, s 62. Income tax and primary and secondary Class 1 NIC must be collected via PAYE if the cryptoassets are readily convertible assets (RCA). Exchange tokens such as Bitcoin are usually readily convertible assets as 'trading arrangements' exist. See further below2.
For cryptocurrencies and tokens that are not RCA, the HMRC guidance states that these will be treated
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Web page updated on 17 Mar 2025 17:19