bitcoin, tax, hmrc, revenues & customs, currency, voucher, money, payments

Bitcoin Gets Rethought in the UK Marketplaces

bitcoin, tax, hmrc, revenues & customs, currency, voucher, money, payments

Britain is having a rethink on the tax treatment of Bitcoin, will it spur purchases?

After Bitcoin’s busy 2013, 2014 seems to have had a softer start for the digital currency that everyone couldn’t get enough of. Because of this, and it’s gradual stabilisation, HM Revenues & Customs has been looking into alternatives for the VAT taxation of 20 per cent on Bitcoin. Part of this reasoning is because they are actually regarded as a voucher, instead of a currency.

By moving it into a currency, there is the possibility that this could legitimise Bitcoin within the UK market.

The reason for a review by HMRC comes from how tax authorities around the world want to gain some revenue from the cryptocurrency. One issue that has arisen is that many Bitcoin traders are tempted to leave Britain to find pastures anew where the tax classification doesn’t rinse them of profit on each sale.

Shamefully, UK policy makers have ruled out allowing Bitcoin to be classed as a currency in its own right.

Still, it’s progress all the same and if the issue of tax gets sorted on Bitcoin in the UK the market could flourish wonderfully quickly. As you can imagine, this could see a boom of potential payments with Bitcoins in stores as well as online.

As many of you are aware, a world where digital currencies are embraced properly means that there’s a whole raft of brand new payment opportunities that arise, making payments even more seamless and invisible, while also increasing security tenfold.

How do you feel about the readdressing of tax classification around Bitcoin?

Do yo think it’ll change the way the currency is used and perceived?

 

[Image: antanacoins - Flickr]

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Comments

  1. Finis

    There are lot of discussions on whether Bitcoins can truly become a viable digital currency and the potential government and banking restrictions which may/may not happen. As in many cases of technology advancement, the current solutions/ecosystems are the barriers to progress given the potential threat to status quo. However, the benefit to the user of these services should also be reviewed completely. Marc Andreessen recent article does this and, as expected, there are quick responses to point out the negatives. This is all good to stimulate discussion. Many dollars are being invested in BitCoin solutions to participate in the payment stream but very little in resolving the biggest issue facing the owner of Bitcoins ….personal ID security, storage and accessibility of Bitcoins and prevention of theft…
    Current methods of using credit/smart cards, mobile devices and cloud/servers have recently been shown that they are less than adequate to secure the users ID and eliminate access to their digital assets from Malware. The technology and biometric tools are available. Security in the Mobile World is the necessary issue to be resolved and multiple biometrics are the keys, and a user friendly platform is necessary.

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