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Accountant@Work
[email protected], Accountant
Category: Tax
Satisfied Customers: 443
Experience:  Executive Director at [email protected]
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Customer Question

Good morning How are you today
JA: Have you talked to a tax professional about this?
Customer: Could you please assist to provide a clarification?
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: TRX Capital, a crypto asset company is currently asking that I pay 15% on my transactions as Personal Income Tax. They confirmed this is in line with the regulation of HMRC, UK. Could you please confirm if this is correct
JA: Which tax year is this for?
Customer: 2022
Submitted: 9 days ago.
Category: Tax
Expert:  [email protected] replied 9 days ago.

Hi, welcome to JustAnswer. I'm [email protected], a UK-Qualified Chartered Certified Accountant with over 15 years of experience. I'll be answering your question today.

Customer: replied 9 days ago.
TRX Capital, an crypto asset based company just notified me that HMRC regulation requires that I pay 15% Personal Income Tax on my financial transactions on its platform. The Company has threated that if I don't make the payment in 24 hours, my crypto asset account may be freezed. Could youplease confirm if the tax payment is in line with HMRC regulations
Expert:  [email protected] replied 9 days ago.
I have so far not found any HMRC regulations requiring firms to withhold tax or charge personal income tax from investors. However, you may ask them to state, under which HMRC regulations they are charging you tax?

Having said that, it appears to be the industry practice of the Capital investment firms to charge tax from investors as many individuals have been charged by firms.

So TRX isn't doing anything unusual.

If they charge you tax, you may obtain a tax statement from them and then claim it on your self-assessment tax return if it is overpaid.

Expert:  [email protected] replied 9 days ago.

These charges may also have been part of your terms and agreement with the firm.

Expert:  [email protected] replied 9 days ago.

I hope I've answered your question? If, however, any part of my response is unclear, please do let me know and I'll try to explain it further.

Customer: replied 9 days ago.
The attached was the message I got on my crypto asset platform and the message below follows:Dear cryptocurrency investors, according to HMRC regulations, all financial transactions of encrypted assets through pledge mining are subject to 15% personal income tax.Please be sure to make the full payment within the 24-hour levy period. After the tax is successfully paid, your account will return to normal and enjoy a permanent tax-free policy.Those who refuse to pay the tax will be regarded as illegal transactions by the TRON community tax department and all assets in the account will be confiscated. The account will be permanently banned and listed in the tron community blacklist.
Customer: replied 9 days ago.
Could you please respond in the context of the above information
Expert:  [email protected] replied 9 days ago.

Thank you for the information. As advised earlier, HMRC expects individuals to pay Capital gains tax on the crypto assets but i am unable to locate any guidance that allows the asset management firms to ask for tax from investors.

The statement issued by TRX is quite strong and intimidatory. Looks like investors don't have much choice but to comply.

You may ask them to quote the specific HMRC regulations to confirm their statement before making any tax payments to them.