If you are paid in cryptoassets the sterling equivalent at the date of receipt is taxable employment income, subject to income tax and national insurance contributions. In most cases the cryptoassets are Readily Convertible Assets (RCAs), which means the employer needs operate PAYE on the employment income.
HMRC state that employees need to receive an actual sterling payment for National Minimum Wage (NMW) purposes and are also clear that cryptoassets are not money. To avoid a NMW underpayment, employer’s should consider paying part of an employee’s salary in fiat sterling to cover NMW for their hours worked.
See our detailed guidance on employment income and NMW.
