New HMRC tax rules for people using cryptocurrency set to start next year
Cryptocurrency holders are being warned by HM Revenue and Customs (HMRC) that new reporting requirements starting next year will help to unmask those trying to evade tax due on their profits.
From January 2026, people who own crypto, such as Bitcoin, Ethereum or Dogecoin, must give personal details to each crypto service provider they use to make sure they are paying the right tax. Those who do not comply risk a £300 fine from HMRC.
Once data is received from service providers, HMRC will identify those who have not been correctly paying tax on their crypto profits. The move is part of a wider drive by HMRC to tackle non-compliance and is estimated to raise up to £315 million 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 start 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 are known as the Cryptoasset Reporting Framework and means 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
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.
People who are unsure about their tax obligations can check if they need to pay tax when they receive or sell crypto on GOV.UK. They can also tell HMRC about unpaid tax on crypto using the cryptoasset disclosure service.
James Murray, 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.'
Jonathan Athow, HMRC's director general for customer strategy and tax design, said: '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.'
Full details about cryptoassets and the new HMRC rules can be found on GOV.UK here.
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