> For the complete documentation index, see [llms.txt](https://docs.recap.io/uk-tax-guide-for-individuals/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/employment-income/uk-employer.md).

# UK Employer

{% hint style="info" %}
If your employer pays you in cryptoassets, the sterling equivalent at the date of receipt is taxable employment income, subject to income tax and national insurance (NI) contributions. 
{% endhint %}

### Readily convertible assets (RCAs)

Where the cryptoasset tokens received as employment income are a readily convertible assets (RCAs), such as Bitcoin, the employer is required to operate PAYE on this employment income, using their best estimate of the sterling value of the tokens at the date of receipt on the payslip, to collect the income tax and NI.

{% hint style="info" %}
HMRC guidance at [CRYPTO21100 ](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto21100)states that cryptoassets are RCAs if trading arrangements exist, or are likely to come into existence, in accordance with section 702 of the Income Tax (Earnings and Pensions) Act 2003. 

Exchange tokens like Bitcoin can be exchanged on one or more token exchanges in order to obtain an amount of fiat money. On that basis, it is HMRC’s view that ‘trading arrangements’ exist, or are likely to come into existence at the point cryptoassets are received as employment income.
{% endhint %}

### Non-readily convertible assets (Non-RCAs)

{% hint style="warning" %}
Cryptoassets received as earnings from employment, which do not meet the definition of RCAs, are still subject to income tax and NI, but employers do not have to operate PAYE. 
{% endhint %}

The individual must declare and pay HMRC the income tax due on any amount of employment income received in the form of cryptoassets (using the employment pages of a Self Assessment tax return). 

The employer should treat the payment of cryptoassets as payments in kind for NI purposes, and pay any Class 1A NI contributions to HMRC.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/employment-income/uk-employer.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.