From January 2026, major crypto platforms and digital wallets will be required to share user data directly with HMRC under new international guidelines aimed at tackling crypto tax evasion. While platforms like Coinbase already report to HMRC, this marks a significant tightening of compliance across the board.
What does this mean for clients?
All users of crypto platforms will soon be asked to provide personal information. If this data isn’t submitted, both the individual and the platform may face penalties. As accountants, we should be advising clients now to ensure their crypto affairs are in order well before this deadline.
Alongside this, a new Crypto Disclosure Facility, similar to the Property Let Campaign, has been live since January 2024. It offers taxpayers the opportunity to voluntarily disclose unpaid tax on cryptoassets. With HMRC’s increasing access to data, it’s likely more people will choose to come forward before enforcement ramps up.
It’s worth noting that HMRC tends to follow a pattern: run a disclosure campaign, then begin issuing letters and investigations. The crypto sector is next in line, particularly with gains in assets like Bitcoin surging in recent years.
Further to this, there is already a change in the Self Assessment tax return for 2024/25, where clients must disclose if a capital gain relates to crypto, including the number of disposals made.
With potential tax revenues estimated at £315 million over five years, HMRC has every reason to invest resources into crypto compliance. Now is the time for accountants to have proactive conversations with clients about their crypto holdings.
To find out more about the taxation of cryptocurrency, please click here.