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Supposedly I got a short-term software engineering remote contract which was agreed to be paid by the cryptocurrencies or tokens on the task-basis (e.g. receiving a certain amount of EOS tokens for task X, and BAT tokens for task Y). The company is based in the EU. To be clear, I'm not planning to monetarize it, like converting it into real currency anytime soon (e.g. converting into GBP), but keep it on the crypto-wallets or trade on the cryptocurrency exchange portals.

Let's assume that I trust the company which is offering me the payments, so personally, I don't need any direct agreement with them for my own safety as all the work is documented well and tasks are tracked using the bug tracking software. For further clarity, I could compare this type of work to Bountysource, but without using the site (in other words, without any middlemen or agents).

Question is, do I need any paperwork to satisfy Revenue and Customs from any kind of tax point of view, IR35 compliance or any other legal purposes?

I've read Revenue and Customs Brief 9 (2014): Bitcoin and other cryptocurrencies, and I think I don't need any paperwork, but I wanted to be sure what's your opinion on that.

  • How are you set up to do the work in the legal sense i.e. sole trader or your own plc ? – Neuromancer Jun 18 '18 at 10:57
  • Potentially I could work either as self-employed or by using sole Limited company, but since the payment is through cryptocurrencies, I think I don't need to use any of it and just take the transfers as the individual. – kenorb Jun 18 '18 at 11:36
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You don't need any other paper work currently; it's treated as a foreign currency, and until you physically exchange that back into pounds, the government require nothing.

Now, once you exchange it back out to pounds as earnings, that is where things get slightly tricky. It's foreign earnings if you're an individual, and you'll need to declare your earnings through self assessment, and you'll also need to track things like fees and or deductions.

This means the paperwork you will need is basically the history of what you did with the cryptocurrency (moved x -> y place, traded x for y, etc); and you are required to keep a copy of this paperwork, but will only have to admit it if you are audited.

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