Payroll in Cryptocurrency
Paying employees or directors in cryptocurrency is possible but requires careful handling. PAYE and National Insurance still apply. The crypto element adds valuation and reporting complexity.
We help crypto businesses structure payroll correctly. Whether you pay entirely in crypto or as part of a remuneration package, we ensure compliance with HMRC requirements.
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How Crypto Payroll Works
Understanding the mechanics of paying staff in digital assets while staying on the right side of HMRC.
Valuation
Crypto payments to employees are valued at the sterling equivalent on the payment date. This value determines the amount subject to PAYE and NI. You need a defensible valuation method.
PAYE and NI
Tax and NI must be calculated on the sterling value and remitted to HMRC in sterling. You cannot pay PAYE in crypto. The employer NI cost applied as with any other payment.
Reporting
Crypto payments must be reported through RTI in the normal way. The payslip shows the crypto element with its sterling value. P60’s and P11Ds relects crypto compensation correctly.
Free Crypto Tax Consultation
During your free 20-minute crypto tax consultation, we will:
Review your crypto activity across exchanges, wallets, staking, and DeFi
Identify what needs to be reported to HMRC, including gains and taxable income
Explain how crypto tax reporting works and what’s required for your Self Assessment
Highlight potential risks or missed reporting obligations before HMRC flags them
Assess whether previous years need correcting and explain voluntary disclosure options
Outline how we calculate gains and income accurately, including HMRC cost basis rules
Select a Date & Time
Our Crypto Payroll Services
From monthly processing to complex structuring, we handle it all.
Payroll Processing
We run your payroll including crypto elements. Valuations, tax calculations and HMRC submissions are all handled correctly. You get compliant payslips and reports.
Structure Advice
We advise on the structuing crypto compensation. Salary sacrifice arrangements, bonus schemes and director remuneration all have different implications. We help you find the most efficient approach.
Benefits in Kind
Crypto provided as a benefit rather than a salary has different treatment. We advise on the rules and handle P11D reporting for benefits in kind involving cryptocurrency.
Can HMRC See My Crypto?
Yes.
HMRC receives data from UK exchanges and can request information from overseas platforms under international agreements. They have issued thousands of nudge letters to crypto holders.
Assuming your activity is invisible is not a safe position. We help you stay compliant so HMRC enquiries are unlikely and easily resolved if they happen.
Not Reported Previous Years?
If you have crypto gains or income from previous years that should have been reported, we can help. Voluntary disclosure to HMRC typically results in lower penalties than waiting for them to contact you.
We prepare backdated returns, calculate what is owed and handle the disclosure process on your behalf.
How Crypto Tax Reporting Works
A simple, four-step process to get your taxes sorted.
Connect Data
Our software pulls transaction data directly from your exchanges and wallets securely.
Calculations
We reconcile disposals and apply HMRC matching rules to determine your exact gain/loss.
Review
A specialist accountant reviews the data for optimizations, reliefs, and accuracy.
Submission
We prepare and submit your Self Assessment tax return to HMRC on your behalf.
Our Promise To You
We combine modern efficiency with old-fashioned service. You get real accountants who know your name and understand your business.
RESPONSIVE SUPPORT
Real accountants, real answers. We don’t use impersonal ticketing systems, giving you direct access to the support you need.
Dedicated Accountant
You won’t be passed around a call centre. You get a dedicated accountant who understands your specific situation.
EXPERT TAX EFFICIENCY
We use our expertise to ensure your accounts are structured efficiently, checking for the allowances and reliefs relevant to you.
Clear advice in plain English
No jargon. Just practical, direct guidance so you always understand your financial position.
Frequently Asked Questions
Can I pay my salary entirely in crypto?
Yes, though PAYE and NI must still be paid to HMRC in sterling. The employee receives crypto but tax is calculated and remitted on the sterling value at payment
Is crypto salary taxed differently?
No. Income tax and NI apply to the sterling value as with any other payment. The employee may have future capital gains when they dispose of the crypto, but that is separate from the employment income.
What about minimum wage?
The sterling value of crypto payments counts towards minimum wage calculations. However, there are restrictions on what proportion of pay can be in benefits rather than cash. We advise on the rules.