According to the FCA, 12% of UK adults now own cryptocurrency. And guess what? Jolly old HMRC has sent around 65,000 “nudge” letters to people they’ve identified as crypto holders – nudging them to check their tax returns and get things right. Or? Face an investigation.
Add to that the fact that cryptocurrency is now formally recognised as personal property under UK law, and the message is clear: it’s time to get your self-assessment right, including your crypto tax.
Here are six things every crypto holder needs to know (plus tips to streamline reconciliations and make your crypto life simpler (maybe)).
1. How do we minimise your tax bill?
I’m guessing – like most clients – you want us to help keep your tax as low as legally possible. The answer isn’t clever loopholes (history shows they go wrong). It’s about doing the basics very well, getting accurate numbers, spotting genuine tax-saving opportunities, and being able to stand behind every figure if HMRC ever asks.
That starts with good data. A specialist crypto tax app that applies UK matching rules and reconciles large transaction histories makes all the difference.
2. Why do I need an app?
Because a well-designed app will apply the UK matching rules automatically (i.e. Same Day, 30-Day Bed and Breakfast, Section 104 pooling, etc), and handle the complexity that comes with reconciling hundreds or thousands of transactions. A spreadsheet just doesn’t cut it when you’re dealing with that volume.
3. What if I’ve used multiple exchanges, wallets, DeFi, NFTs, staking…?
Don’t worry, you do you and we can handle the tax that comes with it. Activity spread across multiple platforms is standard for us, as long as we have the data in a usable form.
The challenge is usually getting that data together. So, if your crypto position is complicated, a reporting app is often the only practical way to summarise your transactions clearly.
4. Is this HMRC-compliant?
Everything we do is HMRC-compliant. But here’s what you need to know: from January 2026, the OECD’s Crypto-Asset Reporting Framework (CARF) means crypto exchanges will start collecting detailed data, and reporting it to HMRC from 2027. So 2026 really is the year to get smart about crypto tax. Don’t wait until 2027 or later for a nasty letter from HMRC!
| Want to get your ducks in a row now? Get in touch! We can help you set up a comprehensive reporting app so that we have what we need to sort your tax returns. |
5. What rules do I need to follow?
HMRC has guidance on crypto assets covering disposal matching rules and the distinction between income and capital gains. You’ll need records that account for Same Day, 30-Day, and Section 104 pooling, and you’ll need to separate transactions by tax treatment.
6. Can you fix past years?
Yes. If you haven’t got previous returns right, we can go back and correct them, or help you make a disclosure to HMRC if needed. The new exchange reporting rules mean it’s better to fix things now than wait for HMRC to come knocking.
Bonus question: 7. How can we make this easier next year?
It is actually really simple. Just make sure the information is collected as you go along so it is ready in April instead of last minute. No more painful one-off clean-up and capture the data spreadsheet exercise each year! Instead, you can just slot it into your annual Self-Assessment process (without rebuilding the picture from scratch at last minute every January).
The moral of the story
Be organised! If you’ve got more than a handful of transactions, you probably need a crypto tax app to provide the data we need. Get it set up now, and next year’s return will be a lot less painful.
Need help getting your crypto tax right? Get in touch; we’ll make sure you’re sorted. |
