¿Te preocupa cómo declarar pagos en Bitcoin en la nómina o qué formularios y códigos exige HMRC? This guide reduces uncertainty by mapping common payroll and reporting situations to the exact HMRC forms, payroll codes and sections to use. It is focused exclusively on HMRC Forms & Codes for Crypto and on practical steps for compliance.
Key takeaways: what to know in 1 minute
- HMRC treats crypto salary as taxable earnings: payroll tax, PAYE and National Insurance apply; record as cash equivalent in GBP at time of receipt.
- Use PAYE and employee NIC rules: employers must operate PAYE and report values via Full Payment Submission or assign appropriate PAYE coding where necessary.
- Self Assessment and SA108: where crypto creates taxable gains or miscellaneous income, complete Self Assessment (SA100) and the SA108 supplementary page for capital gains.
- SMEs must keep robust records: exchange rates, timestamps, wallet addresses and reconciled ledgers; HMRC expects audit-ready csvs.
- Specific HMRC forms and codes exist: this guide maps scenarios (salary, benefits, transfers, airdrops) to HMRC forms and PAYE codes with worked examples.
HMRC treats crypto paid to employees as earnings where the employee receives crypto as remuneration for employment. That means PAYE and National Insurance Contributions are due on the GBP equivalent of the crypto at the time it becomes available to the employee.
Primary references include HMRC's guidance on cryptoassets and the Income Tax (PAYE) manual: see the official pages at HMRC: Tax on cryptoassets and the HMRC cryptoassets manual at HMRC internal manual: cryptoassets.
Key practical points:
- Treat the crypto payment as if it were cash salary in GBP for PAYE/NIC.
- Employers must calculate PAYE and both employer and employee NICs on the GBP value at vesting or transfer date.
- Where employees are paid in crypto regularly, payroll processes must include an exchange-rate rule and reporting flow.
Calculations must convert the crypto amount into GBP at the time of receipt or availability and then determine tax/NIC.
- For PAYE operation use the employer payroll system to report the cash equivalent in the Full Payment Submission (FPS).
- Pay As You Earn (PAYE) tax codes for employees do not change simply because pay is in crypto; the taxable pay figure submitted via FPS is the controlling factor.
- Benefits in kind paid in crypto (for example, non-cash salary supplements) should be reported on P11D where required and are subject to Class 1A NIC.
Worked example (simple):
- Employee receives 0.02 BTC on 15 March 2026; spot GBP rate at that UTC timestamp = £1,600 per BTC.
- GBP equivalent = 0.02 * £1,600 = £32.
- Employer reports £32 as earnings on FPS for the pay period including 15 March 2026; PAYE/NIC calculated normally.
SMEs must follow standard payroll cycles but add crypto-specific controls:
- FPS filing must include the cash equivalent of the crypto amount in the pay period.
- Employers should maintain internal payroll codes to flag crypto payments (e.g., pay element code CPY for internal use) but final tax reporting still uses standard PAYE tax codes and payroll fields.
- P11D obligations apply where crypto is a benefit in kind; Class 1A NIC must be reported via the P11D(b) return and paid by the employer.
Essential HMRC forms and where they apply:
- Full Payment Submission (FPS): report pay, including crypto cash equivalent, each pay period.
- Employer Payment Summary (EPS): if adjustments are needed for months with no payments or statutory payments.
- P11D and P11D(b): for benefits in kind paid in crypto where applicable.
- Self Assessment (SA100) with SA108: for employees or directors who dispose of crypto (capital gains) or receive complex income elements outside PAYE.
Useful HMRC links: HMRC: payroll software and FPS and HMRC: Self Assessment.
PAYE, National Insurance and crypto transfers explained: codes and reporting entries
PAYE and NIC depend on the legal nature of the crypto receipt. Distinguish these common scenarios:
- Salary paid in crypto → treated as earnings (PAYE + employee/employer NIC).
- Bonus or performance-related pay in crypto → earnings at vesting date; report on FPS.
- Transfer of employer-owned crypto to employee (for employment purpose) → treated as a benefit; P11D may be required.
- Transfers between wallets belonging to the same employee are not earnings unless tied to employment.
Suggested internal payroll code examples (for bookkeeping only):
- CRY_PAY: crypto salary gross equivalent (reported to HMRC as normal earnings in FPS)
- CRY_BEN: crypto benefits in kind (used to populate P11D)
HMRC has no bespoke PAYE code naming for crypto; employers must include the GBP value in existing reporting fields. For any ambiguity contact HMRC Employer Helpline; see HMRC contact.
Valuation is the most audit-sensitive area. HMRC expects consistent, documented methodology.
Principles:
- Use a reliable exchange rate source and record the exact timestamp and rate used.
- The relevant time is when the employee has control of the crypto — typically the time of transfer or when it vests, not the time of invoice or offer.
- If an employee can immediately sell for GBP, the taxable value is the market rate at the point of availability.
Recommended practical policy for SMEs:
- Choose a primary exchange (e.g., CoinDesk Bitcoin Price, Coinbase, or an exchange with GBP pairs) and a fallback.
- Use the spot mid-market rate at a fixed UTC checkpoint (e.g., 09:00 UTC on the date of transfer) and record source URL.
- Keep csv exports of exchange rates and reconciliations.
HMRC requires records sufficient to establish tax liability and support submitted returns. For crypto payroll that means:
- Transaction logs: date/time, wallet identifiers, transaction hash, amount of crypto, GBP conversion rate, GBP amount.
- Payroll records: FPS submissions, payslips showing crypto cash equivalents, P11D where applicable.
- Reconciliations showing how GBP amounts were derived from on-chain transactions or exchange statements.
During audit HMRC will expect CSVs or spreadsheets that reconcile wallet movements to payroll entries. Example fields to retain:
- tx_hash, from_address, to_address, crypto_amount, crypto_symbol, timestamp_UTC, exchange_rate_GBP, GBP_value, payroll_reference, employee_id.
Penalties for poor record keeping or late reporting follow standard HMRC rules. Prompt correction and voluntary disclosure reduce penalties.
| Situation |
HMRC form / code |
Action |
| Employee paid salary in Bitcoin |
FPS (report GBP equivalent); internal payroll code CRY_PAY |
Convert to GBP at transfer time; operate PAYE and NIC; include on payslip |
| Employer transfers crypto as a benefit |
P11D / P11D(b); Class 1A NIC reporting |
Calculate cash equivalent; report as benefit in kind; pay Class 1A NIC |
| Employee disposes of crypto (sale) |
Self Assessment SA100 + SA108 (Capital gains) |
Record acquisition and disposal; report gains/losses on SA108 |
| Airdrop or staking rewards to employee |
May be taxable as miscellaneous employment income or gains; SA100/SA108 |
Assess nature; if income, treat via PAYE; if not, record for CGT |
Notes: The table maps practical actions to HMRC forms; specific complex cases (DeFi, NFTs) require bespoke assessment and may need both PAYE and Self Assessment entries.
Payroll flow for crypto salary
📥
Step 1
Crypto received by employee
⏱️
Step 2
Record timestamp & exchange rate
💷
Step 3
Convert to GBP equivalent
🧾
Step 4
Report via FPS / P11D as required
Quick decision flow
Step 1 🔎 Identify the nature of the receipt → Step 2 ⏱ Record timestamp and choose exchange source → Step 3 💷 Convert and record GBP equivalent → Step 4 🧾 Report via FPS/P11D/SA108 → ✅ Compliance
✅ Benefits / when to apply
- Enables compliant payroll operation and avoids late filing penalties.
- Clear valuations reduce dispute risk in HMRC enquiries.
- Robust records make Self Assessment for disposals straightforward.
⚠️ Errors to avoid / risks
- Using inconsistent exchange rates or failing to timestamp conversions.
- Omitting crypto GBP equivalents from FPS or payslips.
- Treating complex DeFi rewards or airdrops as simple salary without assessing tax nature.
Frequently asked questions
How to report crypto income on SA100?
Report crypto disposals and gains on SA108 (Capital Gains summary) and include any taxable income from crypto as part of employment income or other income sections on SA100.
When should an employer use P11D for crypto benefits?
Use P11D when crypto is provided as a benefit in kind (non-cash) and the benefit is not processed through PAYE at source; Class 1A NIC will apply.
What exchange rate should SMEs use for payroll valuation?
Use a consistent, reliable exchange source and record the timestamp. HMRC accepts mid-market spot rates; keep evidence such as a screenshot or csv from the exchange.
Do employers need to operate PAYE if paying in crypto occasionally?
Yes: remuneration for employment is taxable regardless of payment medium. Occasional crypto salary still requires PAYE if the payment constitutes earnings.
How long should records be kept for crypto payroll?
Follow HMRC record keeping rules: generally 22 months after the end of the tax year for PAYE records, but hold Self Assessment and capital gains records for at least 6 years to cover potential enquiries.
Can employees deduct losses from crypto disposals against income?
Losses on disposals are typically capital losses for CGT purposes and offset against capital gains, not against employment income. Specific rules depend on the disposal nature.
When must SMEs disclose crypto on EPS?
EPS is used when employers need to report statutory payments or employer NIC recoveries; include adjustments where crypto payroll impacts those figures.
- Review payroll processes and document a consistent exchange-rate policy (source, timestamp, fallback).
- Update payroll software to record crypto cash equivalents and include GBP value on payslips and FPS submissions.
- Prepare a simple CSV template capturing tx_hash, timestamp, crypto_amount, rate_GBP and payroll_ref for each crypto payroll item and retain for 6 years.