Crypto owners under the microscope
HM Revenue and Customs (HMRC) has got crypto owners that aren’t paying their fair share of tax in its sights.
From January 2026, people who own crypto – like Bitcoin, Ethereum or Dogecoin – must give personal details to every crypto service provider they use to make sure they are paying the right tax.
And those people who don’t comply have been warned that they risk a £300 fine from HMRC.
Once data is received from service providers, HMRC says it will be able to identify those who haven’t been correctly paying tax on their crypto profits.
It has estimated that the move will raise up to £315m by April 2030 in tax revenue,
It’s part of a major drive by HMRC to tackle non-compliance including the small minority who are deliberately evading tax due on their profits from crypto.
Service providers will begin collecting data on users’ activities from January 2026. Any service provider that fails to report this information, or submits inaccurate or incomplete reports, could also be charged a penalty of up to £300 per user by HMRC.
The new rules mean crypto service providers must collect and report:
• Your name, address, and date of birth
• Your tax residence
• Your National Insurance number or tax reference
• A summary of your crypto transactions
James Murray MP, Exchequer Secretary to the Treasury, said: “By ensuring everyone pays their fair share, the new crypto reporting rules will make sure tax dodgers have nowhere to hide, helping raise the revenue needed to fund our nurses, police and other vital public services.”
And Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, added: “Importantly, this isn’t a new tax – if you make a profit when you sell, swap or transfer your crypto, tax may already be due.
“These new reporting requirements will give us the information to help people get their tax affairs right.
“I urge all cryptoasset users to check the details you will need to give your provider. Taking action now and having this information to hand will help you avoid penalties in the future.”
Crypto users should already include any crypto gains or income in their Self Assessment tax returns. HMRC has introduced new dedicated sections to the capital gain pages to be completed from the 2024 to 2025 tax year.
Capital Gains Tax may be due when selling or exchanging crypto, while Income Tax and National Insurance could apply to crypto received from employment, mining, staking or lending activities.
• To discuss any issues raised in this article or any tax matters please contact me on 01772 430000
