Reporting your crypto activity to HMRC isn’t optional, it’s a legal requirement. If you’ve earned income, made gains, or even just swapped one crypto asset for another, you may be liable to pay tax in the UK.
HMRC classifies crypto as property, not currency. This means certain transactions trigger a tax event, whether through Capital Gains Tax or Income Tax. With stricter compliance checks and growing data-sharing between global exchanges and HMRC, filing your taxes accurately and on time is more important than ever.
This guide explains everything you need to know about reporting your crypto to HMRC, step-by-step. From registration to completing forms SA100 and SA108, we’ll walk you through the entire Self Assessment process so you can stay compliant and avoid penalties.
Do You Need to Report Crypto to HMRC?
Yes, as per the crypto tax laws in the UK, you may need to report your crypto activity to HMRC, even if you didn’t make a profit. The HMRC treats crypto as property, which means certain transactions, like selling, swapping, or earning crypto, may result in a tax obligation.
You must file a Self-Assessment tax return if your total crypto income from transactions like staking, mining, airdrops, and being paid in cryptocurrency exceeds £1,000. You must also file a return if your capital gains from crypto disposal exceed £3,000 in the 2024–25 tax year.
However, even if your gains or income fall below these thresholds, you may still need to report if you already file a Self-Assessment return or have other reportable income. HMRC can also require you to file if they suspect underreporting. It’s always safer to disclose your crypto activity, especially since HMRC can now access data from popular exchanges and platforms.
What You Need Before You Start Filing Your Return?
Before reporting your crypto taxes to HMRC, you’ll need to gather all the necessary records to calculate your gains, losses, and income accurately. This ensures your Self Assessment is complete and reduces the risk of penalties for errors or omissions. Organising this information in advance also makes the filing process faster and less stressful.
Gather Your Transaction History
HMRC requires you to report all crypto disposals, including selling, swapping, spending, or gifting crypto. That means you’ll need a full record of every transaction across all platforms. This includes trades on exchanges, transfers from wallets, and activities on DeFi protocols.
Make sure to collect:
- Wallet and exchange transaction history (including buys, sells, transfers, and swaps)
- The dates and GBP values of each transaction at the time it occurred
- Receipts, screenshots, or downloadable CSVs, where possible
Include Income-Generating Activities
If you’ve earned crypto through activities such as mining, staking, airdrops, or getting paid in crypto, you’ll need to report that as income. HMRC treats these earnings as taxable at the time you receive them, based on their fair market value in GBP.
Keep records of:
- Date the crypto was received
- Type of income (e.g., staking, mining, airdrop)
- Value in GBP at the time of receipt
- Any associated expenses, such as gas fees or equipment costs
Track Allowable Expenses
Certain costs related to your crypto activity may be deductible. While you cannot deduct the cost of acquiring crypto for investment purposes, you may be able to claim expenses such as:
- Transaction fees
- Costs related to earning crypto income (e.g., mining equipment or electricity bills)
Manually compiling data from various wallets and exchanges can be challenging. That’s where tools like KoinX simplify the process. With automated imports, real-time calculations, and support for the UK’s share pooling rules, KoinX helps ensure your reports are accurate and HMRC-compliant.
Read More: Crypto Tax In The UK: The Ultimate Guide
How to Register for Self-Assessment In The UK?
If you’re new to filing taxes in the UK or haven’t submitted a Self Assessment before, you must register with HMRC before filing your crypto taxes. The deadline to register for online filing is 5 October 2025 if you plan to file a return for the 2024–25 tax year.
For Self-Employed Crypto Investors
If you’re self-employed and earn crypto as part of your business, such as through mining or accepting crypto payments, you’ll register as a self-employed individual. This is done through your business tax account using your Government Gateway login.
You’ll need to:
- Sign in to your existing Government Gateway account (or create one)
- Add “Self Assessment” as a service
- Wait for your Unique Taxpayer Reference (UTR), which HMRC sends by post within 10 working days (or 21 days if abroad)
- Activate your Self Assessment service using the activation code provided in a second letter
Once this is complete, you’ll be ready to file online before the 31 January 2026 deadline.
For Non-Self-Employed Individuals
If you’re not self-employed but need to report crypto income or gains, such as from trading, staking, or airdrops, you’ll register using form SA1. This process is still handled through HMRC’s portal and also requires a Government Gateway account.
Here’s how it works:
- Complete the online SA1 registration form on the HMRC website
- Receive your UTR by post within 10 working days (21 days if abroad)
- Create or sign in to your Government Gateway account
- Activate Self Assessment online with the code HMRC sends by post
Once set up, you’ll be able to log in and file your crypto tax return for free using HMRC’s online service.
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Note: Although the deadline to submit your return is 31 January, your registration must be completed by 5 October of the same tax year. Delaying this step could result in missing the filing deadline, triggering an automatic £100 penalty—even if you owe no tax. |
How to Report Crypto Income Using SA100?
You must report cryptocurrency on the Self Assessment Tax Return form SA100 if you’ve received cryptocurrency as taxable income. This form is where you disclose all personal income not taxed at source, including income from crypto.
What Qualifies as Crypto Income?
Not all crypto activity falls under capital gains. If you earned cryptocurrency through the following, it will likely be taxed as income:
- Staking rewards, especially if received regularly
- Mining rewards, depending on whether it’s a hobby or a business
- Airdrops, if received in exchange for services or through active participation
- Payments in crypto, for freelance or business services
- High-frequency trading profits, if classified as trading rather than investing
Each of these income types must be valued in GBP at the time of receipt, and you’ll be taxed according to your Income Tax band.
Filling in the SA100 for Crypto Income
Once your total income is calculated, you’ll enter the details into specific boxes on the SA100 form. The most relevant sections for crypto income are:
- Box 17: Enter the total value of crypto income in GBP
- Box 18: Include any allowable expenses directly related to earning that income (e.g., network fees, mining costs)
- Box 21: Provide a brief description of the income (e.g., “Staking rewards from 3 networks between June and December 2024”)
If your explanation doesn’t fit within Box 21, you can use Box 19 – “Any other information” to provide additional context.
Read More: Personal Income Tax On Crypto in the UK
How to Report Capital Gains Using SA108?
Any act of crypto disposal may trigger Capital Gains Tax (CGT). To report your gains or losses, you’ll need to complete the Self Assessment: Capital Gains Summary (SA108). This form is submitted along with your SA100 and focuses specifically on capital assets, including crypto.
What Counts as a Crypto Disposal?
HMRC defines a disposal as any event where you give up ownership of a crypto asset. Common disposal scenarios include:
- Selling crypto for fiat (e.g., GBP)
- Swapping one crypto for another (e.g., ETH for BTC)
- Spending crypto on goods or services
- Gifting crypto, unless to a spouse or civil partner
Each of these requires you to calculate the gain or loss based on the GBP value at the time of the transaction.
Filling in SA108 for Crypto Gains and Losses
To complete the SA108 form correctly, you’ll need to enter your transaction details into the following boxes:
- Box 13.1: Total number of crypto disposals made during the tax year
- Box 13.2: Proceeds from all disposals (total value received in GBP)
- Box 13.3: Total allowable costs (including acquisition cost and fees)
- Box 13.4: Net capital gains before accounting for losses
- Box 13.5: Total capital losses from crypto disposals
- Boxes 45–47:
- Box 45: Losses used from previous tax years
- Box 46: Income losses used (if any)
- Box 47: Capital losses being carried forward to future years
Be sure to keep a detailed breakdown of each transaction, as HMRC may request supporting documentation.
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Note: You must submit both SA100 and SA108 as part of your Self Assessment if you’ve earned crypto and then made disposals. The SA100 covers general income, while SA108 specifically reports your gains and losses. Submitting them together ensures your return is complete and avoids delays in processing. |
When To Submit Your Tax Return?
For the 2024–25 tax year, the key dates for submitting your crypto tax return depend on how you choose to file. If you’re planning to file a paper return, the deadline is 31 October 2025. This is the cut-off date by which HMRC must receive your completed and signed paper Self Assessment forms. Filing by post is only recommended if you are unable to submit your return online.
However, most crypto investors choose to file online, as it is faster, more secure, and offers more flexibility. The deadline for online filing is 31 January 2026. This date is not only the deadline to submit your Self Assessment form but also the final day to pay any tax you owe for the 2024–25 tax year.
Read More: How To Save Crypto Taxes In The UK?
What If You Miss the Tax Return Deadline?
Missing the Self Assessment deadline can lead to a series of penalties and interest charges, even if you owe no tax. For crypto investors, delayed reporting of gains, losses, or income could also attract closer scrutiny from HMRC. The best way to limit penalties is to file as soon as possible once you realise you’ve missed the deadline.
Automatic Penalty for Late Filing
If you miss the 31 January 2026 deadline for the 2024–25 tax year, HMRC will issue an automatic £100 fixed penalty. This applies even if you have no tax to pay or are due a refund. The penalty is charged simply for failing to file your tax return on time.
Additional Penalties Over Time
If your return remains unfiled, the penalties increase the longer the delay continues:
- After 3 months: HMRC charges £10 per day, up to a maximum of £900
- After 6 months: An additional penalty of 5% of the tax due or £300, whichever is higher
- After 12 months: Another 5% or £300, again based on whichever is greater
These penalties are in addition to the initial £100 fixed fine.
Interest on Unpaid Tax
If you also owe tax and fail to pay it by 31 January, HMRC begins charging daily interest on the unpaid amount. This interest compounds, making delays costly over time. The interest applies from 1 February 2026 and is charged until the tax is paid in full.
Using the Voluntary Disclosure Service
However, if you’ve missed a deadline by more than 12 months or realise you failed to report crypto activity in past tax years, you can still make things right using HMRC’s Digital Disclosure Service.
This allows you to voluntarily declare unpaid tax and may result in reduced penalties if HMRC sees your intent to comply. It’s a useful option for crypto investors who are catching up after missing earlier filings.
Can You Amend a Crypto Tax Return?
Yes, HMRC allows you to amend your Self Assessment tax return if you’ve made an error—whether it’s misreporting a crypto transaction, missing an income source, or entering the wrong GBP value. As crypto records can be complex, it’s not uncommon for investors to discover discrepancies after submitting. Amending your return promptly ensures compliance and can help you avoid additional penalties or interest.
Deadline to Make Amendments
You have 12 months from the original 31 January deadline to make changes. For the 2024–25 tax year, this means you can amend your return until 31 January 2027. After this window, you won’t be able to make online corrections and will instead need to contact HMRC to request a manual review or submit a claim for overpayment relief.
How to Amend Your Return?
There are two ways to file an amended return in the UK:
Online Method
If you submitted your return online, log in to your HMRC Government Gateway account and select the option to amend a previous return. You’ll be able to update the relevant sections—such as your crypto income in SA100 or your capital gains in SA108—based on corrected or newly discovered information.
Paper Method
For paper returns, you’ll need to:
- Download and complete a new SA100 and any relevant supplementary pages
- Write “Amendment” on each page
- Post the forms to HMRC along with an explanation of the changes
Avoid Mistakes When Reporting to HMRC
Crypto tax reporting can be complex, especially when dealing with multiple platforms, tokens, and transaction types. Even small errors, like incorrect values or missing entries, can result in inaccurate tax filings and potential penalties. Being aware of common mistakes and knowing how to avoid them is essential for staying compliant with HMRC.
Don’t Miss Less Obvious Transactions
It’s easy to overlook transactions that aren’t direct sales. But HMRC treats a wide range of crypto activities as taxable events, and each one needs to be reported accurately. Failing to report these could lead to underreporting your gains or income.
Make sure you include:
- Swaps between one crypto and another (e.g., ETH to MATIC)
- Spending crypto on goods or services
- Gifting crypto to anyone other than a spouse or civil partner
- Income from staking, airdrops, or NFT-based rewards
Each of these must be converted to GBP at the time of the event and properly included in the SA100 or SA108.
Use Correct GBP Values
One of the most common mistakes is entering incorrect GBP values for transactions. HMRC requires that you calculate your crypto gains and income using the fair market value in GBP at the time of each transaction, not the current value or an estimate. This is especially important if your crypto platform reports values in USD or EUR.
If you’re unsure, use a reliable crypto tax platform like KoinX, which uses historical market rates to assign accurate GBP values to each transaction automatically.
Double-Check Wallets and Exchanges
Many investors only report data from their main exchange or wallet, forgetting that even small transactions on other platforms count. HMRC can request a full audit of your crypto activity, so it’s essential to track activity across all exchanges, wallets, and DeFi protocols where you’ve held or traded assets during the tax year.
Read More: Crypto Mining Tax In The UK
How KoinX Helps Simplify Your Crypto Reporting In The UK?
Staying compliant with HMRC’s crypto tax rules can be difficult, especially when you’re dealing with hundreds of transactions across different platforms. KoinX eliminates the guesswork by automating tax calculations and helping you generate accurate, HMRC-ready reports. Whether you’re a casual investor or an active trader, KoinX simplifies every step of your crypto tax journey.
Seamlessly Imports All Your Crypto Data
KoinX connects directly to 300+ exchanges, wallets, and DeFi protocols, allowing you to consolidate all your crypto activity in one place. Whether you’ve traded on Binance, staked on Lido, or used MetaMask for NFT purchases, KoinX pulls your transaction history securely via API or CSV upload. This removes the need to manually input or reconcile data and ensures that no transaction is missed.
Automatically Calculates Gains, Losses, and Income
Once your data is synced, KoinX instantly applies the UK’s share pooling cost basis method to calculate your capital gains. It also categorises income from staking, airdrops, and mining activities, converting each transaction into its GBP equivalent using historical exchange rates. This makes it easy to see your tax position in real time and helps you avoid costly miscalculations.
Generates HMRC-Compliant Tax Reports
KoinX produces detailed reports tailored for UK Self Assessment.. These reports can be downloaded and submitted directly through your Government Gateway account or shared with your accountant. Every report is formatted to HMRC’s standards, reducing the risk of filing errors or audit triggers.
Helps You Stay Organised Year-Round
Beyond tax season, KoinX gives you the tools to track unrealised gains, identify loss-harvesting opportunities, and stay informed about your portfolio’s tax impact. With timely reminders and updates, it helps ensure you’re always prepared, whether you’re filing early or making amendments later in the year.
Whether you’re filing for the first time or catching up on past years, KoinX is your trusted tool for accurate crypto tax reporting in the UK.
Read More: Crypto Staking Tax In The UK
Conclusion
Reporting your crypto taxes to HMRC doesn’t have to be stressful or complicated. As long as you keep accurate records, understand which forms to complete, and submit your Self Assessment on time, staying compliant becomes much easier. Whether you’ve earned crypto through staking, sold assets at a gain, or received airdrops, every detail matters when preparing your tax return.
If you want to save time, reduce the risk of errors, and generate HMRC-ready tax reports with confidence, join KoinX today. It automates the process so you can focus on your investments while staying fully compliant.
Frequently Asked Questions
Do I Need To Report If I Only Made A Loss?
Yes, you should still report your crypto losses to HMRC using the SA108 form. Declaring your losses allows you to carry them forward and offset them against future capital gains. Even if you owe no tax this year, reporting losses now could reduce your tax bill when you do make gains in the future.
Can I Carry Forward Unused Crypto Losses?
Yes, HMRC allows you to carry forward unused crypto losses to future tax years. These losses can be used to reduce your capital gains in future years, but only if they’ve been reported to HMRC. Make sure to include them on your SA108 form, even if you don’t need them right away.
What If I Didn’t Know Crypto Was Taxable?
Not knowing that crypto is taxable won’t exempt you from HMRC penalties. However, if you act quickly to correct the issue, such as by filing a late return or using the Digital Disclosure Service, penalties may be reduced. HMRC values transparency, so it’s best to come forward voluntarily if you’ve missed reporting requirements.
How Far Back Can HMRC Investigate?
HMRC can usually investigate up to four years after a tax return is filed. However, if they suspect carelessness, this extends to six years. In cases of deliberate tax evasion, HMRC can go back up to 20 years. This is why it’s important to report your crypto activity accurately and keep thorough records.
