Bitcoin mining and permitted work rules

True, Benny.

It’s a welcome break from being at the coalface of welfare rights…

I just have this vision of Billy’s client looking like Yosemite Sam with a prospecting pan slung over his shoulder whilst he complains about ‘varmints’

There was some HMRC guidance last year on bitcoin transactions:
Revenue and Customs Brief 9 (2014): Bitcoin and other cryptocurrencies

It’s not terribly helpful here, though. Regarding income tax, on the one hand, for income tax “depending on the facts, a transaction may be so highly speculative that it is not taxable or any losses relievable”. On the other, “the profits and losses of a non-incorporated business on Bitcoin transactions must be reflected in their accounts and will be taxable on normal IT rules”.

Even if the £60pw profit is net of electricity costs, your client will probably be below income tax. Still, I’d have thought he should be registered for Self Assessment.

For what it’s worth, I’d agree that the uptime of the computer is not relevant to hours of work.

Bit coins are currency….... Bit coin mining is work.

If the chancellor had any sense he would encourage more crypto currencies and encourage all the unemployed to mine. It is called Keynesianism. It would be preferable to QE.

i think an important question here is even if your client isnt required to do anything is he available to intervene if something goes wrong?....also does he know when the mining is finished (if thats a term) and he needs to wait around on that happening as all that could be seen as time working even if he isnt doing anything.

bit like working in a shop and it being empty or having a place in the house of lords.

Now don’t go giving IDS any more ideas they could bring back the ‘Full extent Normal Rules’.