Taxman not interested in Bitcoin

3 March 2014

bitcoin1-300x300 Bitcoin - or, as it should be called: Hippie Money - is a real buzzword at the moment, despite the fact that the vast majority of people don't know what it is.

Either way, this new currency is becoming quite the thing for web-crusties who look at it like it is our saviour from the banks, despite having to shut down recently, thanks to a massive loss. In Britain, it is all set to grow as HMRC rules that they're not at all interested in charging VAT on Bitcoin transactions.

Yet.

The Tax People held talks with UK Bitcoin traders last week and decided that they would not charge the 20 per cent VAT tax on trades, and, on top of that, wouldn't be charging the tax on entrepreneurs' Bitcoin margins either.

Suddenly, shark-eyed business sorts are thinking of getting on-board with the Hippie Money now that Britain will be one of the most tax-friendly places for this cryptocurrency. And they're right to keep an eye on it. At the moment, there's around $6.9bn worth of Bitcoins in circulation.

As Bitcoins are not traceable, this could be an excellent area for criminals and tax-dodgers to get involved in. Your dealer might start dealing solely in Bitcoins. Vodafone and Chris Moyles might start getting on it too.

Jonathan Harrison, someone looking to bring Bitcoin ATMs to the UK, thinks this is good news, saying: "If they had added VAT that would have destroyed us, there would have been no point in starting this business at all. It’s great that the UK authorities are seeing Bitcoin as an innovative technology that can help the economy."

Is this the money of the future? We all know how well the babyboomer hippies did when it came to making money, don't we?

TOPICS:   Banking   Tax

2 comments

  • Samantha
    Ugh Bitcoin did not shut down, one exchange did (granted a very big one) that's like saying that the Euro stopped trading because Thomas Cook was closed. And Bitcoin isn't untraceable, completely the opposite, every transaction is recorded and kept in a publicly available log forever, going right the way back to the initial creation of that coin. It's just that with a little knowhow, they're incredibly easy to wash, and once washed you can store them in a wallet that can't be linked to you.
  • JP
    What a misleading title... What happened is that HMRC decided to treat Bitcoins as a currency rather than a commodity - which is correct, really. And that's why businesses are all over it, because they can now accept it here without being treated as though they were paid in silver.

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