UK Cryptocurrency Tax Specialists
Expert Crypto Tax Advice for Investors, Traders, and Blockchain Businesses
Cryptocurrency has revolutionised finance — but it’s also created complex tax challenges that many UK taxpayers don’t fully understand. HMRC now treats most crypto activity as taxable, and it’s using data from major exchanges (like Binance, Coinbase, and eToro) to identify individuals who haven’t reported their gains.
If you’ve received an HMRC nudge letter, traded frequently, or simply want to ensure you’re compliant, Odiri Tax Consultants can help.
We’re trusted UK‑based tax specialists with deep expertise in cryptocurrency accounting, disclosure management, and HMRC compliance — helping clients across the UK and overseas stay compliant, minimise tax, and avoid penalties.
Why Choose Odiri Tax Consultants for Your Crypto Tax Needs?
- Recognised UK Tax Experts – Our firm has years of experience supporting individuals and businesses with complex digital asset taxation — from capital gains to blockchain accounting.
- Specialist Knowledge of HMRC Guidance – We interpret HMRC’s official crypto guidance in plain English, ensuring your reports are correct, comprehensive, and defensible in the event of an enquiry.
- Full Confidentiality & Legal Compliance – We handle every disclosure securely and professionally, offering you protection, peace of mind, and confidence when dealing with HMRC.
Received a Letter from HMRC About Cryptocurrency?
Since 2023, HMRC has been issuing “nudge letters” to UK residents who may have traded, mined, or earned income in cryptocurrency but failed to declare it.
These letters typically state that HMRC holds data from cryptocurrency exchanges and ask recipients to voluntarily disclose unreported gains or income.
If you’ve received such a letter:
- Do not ignore it.
- Do not reply without professional advice.
- Contact us immediately.
Our experts will help you:
- Review your trading and income history
- Calculate your potential tax exposure
- Prepare and submit a voluntary disclosure under HMRC’s Digital Disclosure Service (DDS)
- Minimise or eliminate penalties through proactive cooperation
Acting before HMRC opens an investigation can significantly reduce penalties — sometimes to zero.
Our Comprehensive Cryptocurrency Tax Services
Personal Cryptocurrency Tax
- We ensure all your personal crypto transactions are reported accurately to HMRC:
- Capital Gains Tax (CGT) on disposals (sales, swaps, and conversions)
- Income Tax on staking, mining, yield farming, and airdrops
- Crypto payments received as income or employment
- Accurate valuation of tokens in GBP at transaction time
- Self‑assessment completion and submission
We help everyday investors, active traders, and DeFi participants make sense of complex tax data
Crypto Accounting for Companies
If your business accepts or pays in crypto, we can help you stay compliant and efficient:
- Accounting for crypto‑denominated transactions
- Corporation Tax and VAT on digital asset activity
- Payroll management for employees paid in crypto
- Advice on ICO and token issuance tax treatment
- Audit‑ready bookkeeping and reconciliations for HMRC inspections
Whether you’re a blockchain start‑up, fintech company, or investor, we provide practical, compliant, and cost‑effective support.
HMRC Disclosures for Undeclared Gains
If you’ve traded crypto in past years and not reported your activity, we help you:
- Submit a voluntary disclosure via HMRC’s Digital Disclosure Service
- Calculate and disclose historical gains or income accurately
- Negotiate reduced penalties and interest
Our team has successfully supported multiple clients through crypto disclosure cases — achieving penalty reductions and avoiding costly disputes.
HMRC Investigations
If HMRC has opened an enquiry, we act as your professional representative to:
- Respond to HMRC information requests
- Provide verified transaction reports and valuations
- Reconcile exchange, wallet, and blockchain data
- Manage communication to minimise liability
- Resolve disputes quickly and professionally
What Crypto Activities Are Taxable in the UK?
Understanding your tax obligations as a crypto investor or trader in the UK is essential. HMRC treats most cryptocurrency activity as taxable, either under Capital Gains Tax (CGT), Income Tax, or Corporation Tax. Whether you’re selling, staking, mining, or simply getting paid in crypto, it’s important to know how each activity is classified to avoid penalties and remain compliant.
| Crypto Activity | Tax Type | Description |
|---|---|---|
| Selling or Swapping Crypto | Capital Gains Tax (CGT) | Triggered when you sell crypto for GBP, exchange crypto-to-crypto, or use it to purchase goods/services. |
| Mining Cryptocurrency | Income Tax (plus CGT on disposal) | HMRC considers the value of mined coins as taxable income. When sold or swapped, CGT may also apply. |
| Staking, DeFi Yield & Lending | Income Tax | Rewards from staking or DeFi platforms are taxable as income when received, even if reinvested. |
| Airdrops | Income Tax or CGT | If received in exchange for services or expected, it’s income. Otherwise, taxed under CGT when sold. |
| Getting Paid in Crypto | Income Tax / PAYE | Crypto received as wages or business income is taxable based on its GBP value at the time of receipt. |
| Crypto Business Activity | Corporation Tax / VAT | For companies or partnerships transacting in crypto, standard business tax rules apply. VAT may also apply. |
| Gifting Crypto (Non-Spouse) | Capital Gains Tax | Gifting crypto to anyone other than your spouse is treated as a disposal |
| Lost or Hacked Crypto | Possible CGT Relief | You may claim a negligible value loss, provided there is evidence and no chance of recovery. |
| Transferring Between Wallets / Holding Crypto | Not Taxable (Yet) | Holding crypto or transferring it between your own wallets is not taxable until a disposal event occurs. |
At Odiri Tax Consultants, we provide expert, tailored advice to help you stay compliant, minimise tax, and handle all cryptocurrency matters with confidence. Whether you’re an investor, trader, or business, our specialist crypto tax team is here to support you every step of the way.
What HMRC Requires You to Record
HMRC expects all UK taxpayers involved with cryptocurrency to keep complete and accurate records of all transactions involving crypto assets. This applies whether you’re an individual, a sole trader, or a business entity, and whether you’re holding, buying, selling, receiving income, or using crypto in any other form.
Keeping precise records isn’t just good practice — it’s a legal requirement under UK tax law, especially when submitting a Self Assessment tax return or making a voluntary disclosure.
Failing to maintain accurate records may result in:
- Inaccurate tax calculations
- Inability to defend claims during an HMRC enquiry
- Penalties and interest for incorrect or late tax submissions
Cryptocurrency taxation can be overwhelming — especially if you’ve made hundreds (or thousands) of trades across different platforms, or have lost track of old wallets and exchange data. At Odiri Tax Consultants, we provide end-to-end support to ensure your crypto tax reporting is 100% HMRC-compliant. Whether you’re catching up on unreported gains, submitting your first crypto self-assessment, or preparing for an HMRC disclosure or enquiry — we’re here to simplify the process and protect your interests.
Here’s how we help:
