Taxes on Bitcoin

Hey everyone, I was just curious if anyone knows how to dodge taxes on Bitcoin profits in the sunny UK. Cheers

There is always a way to avoid paying taxes, the only question is whether you can live with the knowledge that the authorities may one day find out you did not pay taxes, so the initial tax will seem rather insignificant given the interest and penalties. Also, the whole thing largely depends on how you bought Bitcoin, or whether you left traces in the form of KYC on an exchange that may provide this information to your tax office - or you bought Bitcoin anonymously and you can also sell it that way. Furthermore, if it is a large amount of money you have a problem that you can not deposit it in the bank, and if you start spending it you will attract the attention of various suspicious figures, and possibly the tax office that will easily notice the disparity between your income and spending. I don't know what category you are in, but think twice before you decide to mess with the authorities, especially at a time when they are looking for ways to fill the state coffers more than usual.

If you want to avoid tax paying, open cryptocurrency account in IRA,self directed IRA that will allow you choose cryptocurrency of yourself, you won't pay tax,but effectually pay ordinary income tax withdrawal,you can browse on how to open cryptocurrency in IRA,then make your choice,but make sure you understand it before you venture into it.

If nobody knows that you got any coins, you don't pay any taxes. That means you shouldn't be buying your coins on the exchanges. You should get them over the counter. No traces, no kyc, no tax. It is still dangerous if talk carelessly about your holdings but that's only I only way I can think of. If you are buying your coins on the exchanges, don't bother at all. Pay your taxes.

Legally? No. That's life, you have to pay taxes. I know they can sometimes be a pain in the arse, especially how complex they can be sometimes, however at least in the UK our tax goes to something useful like the National Health Service (NHS). Just pay your taxes, and live stress free. I always recommend an accountant, and I know what I lot of people will say, that goes against Bitcoin's core principles in trying to avoid third parties, however I like to have peace of mind that my accountant has run all the numbers, and I don't have to second guess myself if I were to do them myself. You can however legally put in expenses against your income tax. So, if you've bought a computer which you needed to earn that Bitcoin, you could potentially offset that against your tax. Again, an accountant will be able to tell you what you can, and can't offset against the taxes. I usually just send in the receipts, and let them do it automatically, whatever they think is eligible.

In my country, the common type of tax that citizens pay is Pay-As-You-Earn (PAYE) type of tax. For you to avoid tax is to show to the government that you do not even earn at all. How can you show that you do not earn? You can show that you don't earn if you are not a civil servant, because civil servants cannot hide because they are paid by government. But if you can hide your bitcoin transactions from the exchanges and the banks, you can avoid tax

People even avoid paying taxes about illegal earnings. So it's possible also on cryptocurrency. But it will be like your illegal earnings and once a time you might be caught. Using decentralized exchange and a non-custodial wallet would help you avoid tax, but you might face issues during making it liquid. You know very well what is the process to convert Bitcoin to liquid cash. I know it's quite painful to pay tax from Bitcoin earnings, but it's law in your country. Breaking low means punishable. So you know better what to do.

Just don't, pay your taxes and live a free life.

Probably use a privacy coin like Monero to be able to hide your crypto and be able to exchange it without worrying about it being tracked. But the only problem that you have is that if you become complacent and greedy in your scheme, you will eventually slip and that's when the authorities or the tax bureau will see some irregularities in your cashflow and they will definitely ask a question and you're going to need a believable answer because tax bureaus are persistent.

I assume the OP will be talking about a small amount. I think it unlikely that he is talking about millions, as he would have tax advisors and would be very foolish to ask that on that forum. The main thing is if you have left traces to the authorities as Lucius says, the normal thing in that case is to pay and stay calm. If you did not leave traces you can also pay and stay calm, or do it to contribute to defray the public expense of your country, but if you do not do it and you get caught you will not be put in jail either. Normally the penalties for small amounts, I don't know exactly how it will be in the UK, are the amount you would have had to pay and a fine. But if it is a small amount, it is rare that you are investigated.

I am not sure if you can live a free life in jail. It don't make sense one bit. If you don't pay taxes, they send your ass to prison. How is you gonna be free then? That's another story if you feel free in a prison environment. There was a dude just like that in "the Shawshank Redemption". He was so used to jail, he hung himself when he got out of jail because he couldn't get used to normal life.

This depends on the quantity. I don't know where you live if it's different, but where I live, if you don't pay $500 in taxes and get caught they don't put you in jail. They make you pay the $500, interest from the time you would have had to pay it and a fine. You can end up paying $1K or more, though.

OK. Punctuation is the key. There's a "comma" right there. Quote from the OP: ^ {Just don't} "," {pay your taxes and live a free* life} > That means, pay your taxes.. and you won't go to jail. *the question about the how free the life out of the jail really is, is a topic for another conversation. Hope now it's clear

Sure clearer to me. You don't pay tax, you may get caught and if luck is out of you , you get charged at the court and you will be asked why evading civil responsibility ? Hahaha  Is clear that being in jail is a big deprivation of your freedom and fundamental human right of freedom of association and more as penalty. Pay your tax up to date.

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Dude there are two things in life that you cannot escape. Death and taxes. As a lawful citizen in our respective countries, whether if you like it or not, or you are either pro or anti-government, paying taxes is a law and you have to comply. The government wants a share of our earnings. Our taxes are being used to make our country better. Especially in the ongoing pandemic, imagine if there is no tax, how can the government be able to provide vaccines for us? How can they repair our damaged infrastructures, roads, etc.? And the list goes on. If you are not happy about the tax, one way is to increase your income by going into multiple streams.