I don't have a business
If your going into Bitcoin mining, then you have a business!
I'm still confused by all this as Bitcoin is still not officially accepted by government entities.
So to register and gain a VAT number and then provide annual accounts of what exactly?
I could make a business with potentially loads of expense and no gain, or if they do recognise bitcoins eventually pay a huge income tax, potentially thieving any profit. Profit thats volatile and may disappear subsequent to annual admission?!
Surely bitcoin mining is just a hobby until there is some wider acceptance and legislation??
I would love to hear of a clear strategy here Flappy...
You're not an official mint, so you're a business or individual with no special status.
The Taxman's view is easy: if it wasn't there before, it's a profit and it's taxable. That's for fiat.
BTC don't exist in their worlds (because it's not officially recognized they can't accept it as payment, sooooo "it doesn't exist" solves their problems).
Now you can choose to declare said profit as an individual or as a business. As an individual, it becomes quickly awkward to explain and you can't get any of the usual business benefits such as tax deductions, risk reserves, whatnot.
As a business, it's much simpler: if it wasn't there before, it's because you made it because you're in the business if making it. They don't care what, they don't care how, it's only important that you show expenses and profits and that you can be taxed.
