U.K. resident and crypto cashback

[UKCryproAddict]

Hi All,

Hoping for some clarity.

I am very new to the scene, I started with my first crypto investment October last year staking for the crypto .com cashback card. The reason I got this card is I knew I was going to leverage business spend through this card. Shortly after I also staked for the swipe sxp card, again for the business spending to gain the cashback.

8 or so months later I have £40k worth of cashback received in its native crypto currency it was paid the cashback in. Swipe was BTC and crypto .com the CRO token. I have heard several different things from accountants on this. One of which a “benefit in kind” as these spends couldn’t happen without the existence of the businesses. Another said income tax. Another said cashback is not taxable in the eyes of HMRC (which is my understanding).

How would you guys approach it? I’m more wary than usual as to make all these said business spends, I have on-ramped around £500k into crypto platforms from my personal bank account which has all been reimbursed back to me from the company.

Thanks in advance!

 

[CaptK]

As the card terms and conditions state it's cash back it's upto you to interpret the way that works for you. That's on the cash back card expenditure, on the staking you will have to chose CGT or IT depending on your line of business.

Cashback is not deemed as income by HMRC same as layalty bonuses.