# Paid in crypto — UK Income Tax, PAYE and National Insurance

Crypto employment income is ‘money’s worth’ taxed through PAYE if you are employed — your employer should deduct Income Tax and NI. Self-employed contractors must declare the sterling value on Self Assessment. When you later sell tokens, CGT applies only on any increase in value since you received them.

## Key facts
- Taxable amount = sterling value when received.
- Employers must run PAYE on crypto pay.
- Self-employed: report on SA100.
- That value becomes your pool cost for later CGT.
- Keep payslips and token receipt records.

## Employed and paid in tokens

HMRC treats crypto pay as money’s worth. UK employers estimate sterling value, run PAYE, and deduct tax before paying you. Ask your employer if PAYE was applied. If not, you may need to pay through Self Assessment.
## Self-employed and contractors

Invoice value in pounds or crypto fair value counts as trading or miscellaneous income. Register for Self Assessment if required. The £1,000 trading allowance may apply to minor side income.
## When you sell the tokens

Acquisition cost for CGT is the income value you already paid tax on. Gain = sale proceeds minus that value. No double Income Tax on the same receipt.

## FAQs
### What if my employer pays from overseas?

UK tax on UK-resident employees still applies. Seek advice for cross-border arrangements.

## Sources

- [HMRC — Check if you need to pay tax when you receive cryptoassets](https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-receive-cryptoassets)
- [HMRC — Paying employees in shares and non-cash](https://www.gov.uk/government/publications/paying-employees-in-shares-or-other-non-cash-benefits)

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— Digital Assets UK (https://digital-assets.co.uk/tax/paid-in-crypto-employment/), reviewed 2026-06-23. Source: https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-receive-cryptoassets