An increasing number of celebrities, sports stars and tech workers are requesting that their salaries be paid in cryptocurrency.
While there are platforms that allow for this in North America and other regions, there’s a lack of information on how British employers can pay their staff, contractors and affiliates in cryptocurrency.
Whether you or your employees are looking to have your salary paid in full or in part in cryptocurrency, this guide covers the basics.
Risk / Reward
Reward
- Instead of regularly buying crypto, you could have your salary paid directly in crypto. But, this also raises the question of: why don't you do this yourself, via an auto-buy feature?
- Platforms exist to make this simple for you and your employer. Even if your employer doesn't wish to touch crypto, platforms exist that allow them to pay your salary in fiat (GBP, for example), which is then converted to crypto and sent to your wallet.
- You needn't receive your entire salary in crypto. How about receiving just a portion of your monthly salary in crypto?
Risks and Notes
- A potential tax headache. Make sure you (and/or your accountant) have brushed up on HMRC's treatment of crypto income before going down this route. The income will be subject to income tax and national insurance contributions, and any subsequent disposals would be subject to Capital Gains Tax.
- Exposure to price fluctuations. This isn't news to any of you, but: receiving your income in a highly volatile asset class like cryptocurrencies exposes you to risk.
Get Started
Employers and employees who want to be paid in cryptocurrency in the UK might find the following platforms helpful…
Option 1: Bitwage
- With offices in Europe and California, Bitwage is a trusted provider of crypto payroll solutions.
- Their transparent pricing plans start at a free plan, with a Premium plan costing employers just $7.99/month/employee.
- Same-day wage processing, plus the ability to mix 3 different wage types (e.g., BTC, ETH and GBP).
- Learn more at Bitwage.
Option 2: BitPay
- BitPay offers a whole host of personal and business solutions for sending and receiving cryptocurrencies, including BitPay Send which allows for crypto payroll as well as paying contractors with cryptocurrencies.
- Learn more at BitPay.
Option 3: Mode
- In late 2021, Mode Global announced a partnership with PayEscape to pilot a Bitcoin payroll product for Brits.
- The service allows employers to pay British employees directly into their Mode crypto wallet.
- Learn more at Mode.