I doubt if hmrc needs to. Well, let me not get into the territory of what they need to do or not. They should be eyeing deposits into a bank account from crypto exchanges and unconverted steem is just gas, thin air.
Just because someones decided to change the symbol for likes to $ and people started trading those likes, doesn't mean i made any money. Once i sell the likes for money and its cash in my account, then i should pay taxes.
Interesting. You may feel that way, but HMRC don't think the same and the law is the law. They see all Crypto as digital assets and subject to taxation. You are correct in that there is no capital gains tax for individuals on 'unrealised' gains. But each time you go from steem to SBD, or make exchanges, you are in effect crystallising gains and possibly exposing yourself to taxation.
It's still a bit of a grey area, but anyone who thinks HMRC is not looking into this space is very mistaken.
Yeah, i agree that hmrc will always see it as that. The whole steemit proposition was earn money for your content. So it is money, and you're the expert so you should be able to make a more informed comment but i wonder if steemit income is simply capital gains. Wouldnt it be revenue? Any fluctuation is price is like unrealised fx gain or loss. And when you cash out, you either realise cap gain or book cap losses. I dont know the tax treatment but would be similar to unhedged revenue earned by selling products in a different currency and reporting them to hmrc in £.
That's a very good point about reporting your steem earned as income to HMRC.
Much better reporting early and be taxed while the value of STEEM is low.
That way any future gains in the value of your steem will be taxed as a capital gain which is taxed lower than income
Yup, thats actually very well explained. Reporting early is def better in case of steem.
I am getting a few Crypto tax clients already, after the last bull run. I expect the flood gates to open when the next one happens.
I think you're right. A large number of people got in during the nov dec run up and later. Those are yet to see any gains.