Morex Credits are treated the same as cash by HMRC
Because Ṁ1 = £1 sterling, HMRC treats Morex Credits transactions the same as cash for tax and VAT purposes. HMRC's Business Income Manual BIM40051 establishes that trading income received in non-monetary form is taxable in full.
Morex Credits income is taxable income
Record all Morex Credits income at face value — Ṁ1 = £1. Morex Credits purchases are deductible as normal business expenses, the same as cash purchases.
VAT applies to the full transaction value
VAT applies to the full value of every transaction including the Morex Credits element, calculated at Ṁ1 = £1.
Example: £800 net work paid in Morex Credits:
We recommend ensuring the cash element covers at least the VAT due to protect your cashflow.
Relevant HMRC references: VATVAL05100 and VATVAL05200.
Always issue a proper invoice
Every Morex Credits transaction should be supported by a proper invoice — including how much was paid in Morex Credits and how much in sterling.
Recording Morex Credits in your accounts
Treat your Morex Credits account as a separate ledger entry at Ṁ1 = £1.
- Positive balance — a current asset
- Negative balance — a current liability
- Sales — record as turnover at face value
- Purchases — record as normal business expenses
Does Morex Credits income count toward the VAT threshold?
Yes — at face value. If your total taxable turnover including Morex Credits income exceeds £90,000 in any rolling 12-month period, you must register for VAT.
Can I pay wages in Morex Credits?
No. Under the National Minimum Wage Act 1998, wages must be paid in sterling. You cannot pay employees in Morex Credits, either in whole or in part.