Crypto Tax Forms UK: How to Report Crypto to HMRC 2024

The tax authorities, including HM Revenue and Customs (HMRC) in the UK, have developed specific guidelines and forms to ensure that individuals report their crypto activities accurately. This guide will provide you with comprehensive information on how to report your cryptocurrency transactions to HMRC, covering tax obligations and detailed instructions on filing both online and paper tax returns.

Do I Have to Pay Crypto Taxes in the UK?

In the UK, you are required to pay crypto taxes on your transactions if you meet certain criteria. Here’s what you need to know:

• Capital Gains Tax: You must pay CGT on the profits made from selling your crypto assets. The current CGT allowance for individuals is £6,000 for the 2024/25 tax year. If your total gains exceed this amount, you will need to report and pay CGT.
• Income Tax: If you receive cryptocurrency as payment for services, through mining, staking, or airdrops, these earnings are considered income and are subject to Income Tax. The tax rates depend on your total income and can range from 20% to 45%.
• Self-Assessment: If your crypto activities result in taxable gains or income, you must report them through the self-assessment tax return.

How to Report Your Crypto Tax?

Reporting your crypto tax involves several steps, whether you choose to file online or via a paper tax return. Here’s how you can do it:

Filing an Online Tax Return – Overview

1. Register for Self-Assessment: If you haven’t already, register for self-assessment with HMRC. You can do this online through the HMRC website.
2. Gather Your Records: Collect all relevant records of your crypto transactions, including dates, amounts, values in GBP, and the nature of the transactions (buying, selling, trading, etc.).
3. Calculate Gains and Income: Determine your total capital gains and any income received from crypto activities. Deduct any allowable expenses and apply the CGT allowance.
4. Log into HMRC Online Services: Use your Government Gateway user ID and password to access your self-assessment account.
5. Complete the Tax Return: Fill in the relevant sections of the tax return form (SA 100). For capital gains, use the CGT summary section. For income, use the additional income section. More details below.
6. Submit the Return: Review your completed tax return, ensure all information is accurate, and submit it online before the deadline (usually 31st January following the end of the tax year).

Filing a Paper Tax Return – Overview

1. Obtain the Form SA100: Request a paper tax return form SA100 from HMRC if you prefer not to file online.
2. Gather Your Records: Collect all relevant records of your crypto transactions, as detailed in the online filing process.
3. Calculate Gains and Income: Determine your total capital gains and any income received from crypto activities, and apply the necessary calculations.
4. Complete the Form: Fill in the SA100 form, including the capital gains section and any additional income sections.
5. Attach Supplementary Pages: If required, attach supplementary pages (e.g., SA108 for capital gains).
6. Mail the Form: Send the completed form and any attachments to HMRC before the paper filing deadline (usually 31st October following the end of the tax year).

Which Tax Forms Do You Need to File Your Crypto Taxes?

When filing your crypto taxes in the UK, you need to be aware of the specific forms required by HMRC. The main forms you will need are related to the self-assessment tax return and any supplementary pages that provide details on your capital gains and other income. Properly completing these forms is essential to ensure that you accurately report your cryptocurrency activities.

Key Crypto Tax Forms in the UK

Tax Return SA100

The SA100 form is the main self-assessment tax return form used to report your income, gains, and other financial details to HMRC. Here is a detailed description of how to complete the SA100 form for crypto taxes:

1. Personal Information: Fill in your personal details, including your name, address, National Insurance number (NINO), and Unique Taxpayer Reference (UTR).

2. Capital Gains: Indicate that you have capital gains to report by ticking the appropriate box 7. You will need to complete the SA108 form for detailed information on your crypto gains.

3. Other UK income not included on supplementary pages: This is the most relevant section for reporting cryptocurrency income on the SA100 form, which includes the boxes 17-21. Use these boxes to detail your crypto income:

• Box 17: Include any income received from cryptocurrency activities, such as mining, staking, or payments in crypto.
• Box 18: Enter any allowable expenses related to your crypto activities.
• Box 21: Provide a description of any cryptocurrency-related income. This includes earnings from activities such as mining, staking, and receiving payments in cryptocurrency. Ensure that you detail the nature of the income to provide clear information.

4. Tax Calculation: Complete the rest of the form if applicable. The HMRC will calculate the tax for you.

5. Declaration: Sign and date the declaration to confirm that the information provided is accurate and complete.

Capital Gains Summary SA108

The SA108 form is the supplementary page used to report capital gains and losses. This form is crucial for detailing your cryptocurrency transactions. Here is a detailed description of how to complete the SA108 form for crypto taxes:

1. Personal Information: Fill in your personal details, including your name and UTR.

2. Other Property, Assets, and Gains: The most relevant section for reporting cryptocurrency transactions on the SA108 form is “Other property, assets, and gains,” which includes the boxes 14-22. Use these boxes to detail your crypto disposals, including the date, description, disposal proceeds, allowable costs, and resulting gains or losses:

• Box 14: Number of disposals
• Box 15: Disposal proceeds
• Box 16: Allowable costs (initial purchase price, transaction fees, etc.)
• Box 17: Total Gains in the year (summing up the individual transaction results)
• Box 18: Attributed gains (only relevant if you’ve received any gains, capital payments or benefits, as a beneficiary from a non-UK resident trust)
• Box 19: Losses in the year
• Box 21 and 22: Relevant if you have used real-time capital gains services

3. Losses and adjustments: Use this section including the boxes 45-48, to report any capital losses from cryptocurrency transactions. Remember that the annual exempt amount for this year is £6,000 for individuals.

You can find additional information in the HMRC Capital Gains Tax summary notes.

How to Get Crypto Tax Information

Obtaining the necessary information to accurately complete your crypto tax forms involves gathering data from various sources where you have conducted your crypto transactions. Here are the main sources:

Exchange

1. Transaction History: Most cryptocurrency exchanges provide a transaction history feature where you can download your trading activity. This includes buying, selling, trading, and withdrawal records.
2. Account Statements: Some exchanges offer downloadable account statements that summarize your activities over a specific period.
3. CSV or API Access: Many exchanges allow you to export your transaction history as a CSV file or connect via API to crypto tax software for automatic data import.

Wallet (DeFi)

1. Transaction Records: Decentralized Finance (DeFi) wallets often keep records of your transactions. You will need to manually download or record these transactions.
2. Blockchain Explorers: Use blockchain explorers like Etherscan or BscScan to view and export transaction history for specific wallet addresses.
3. Export Features: Some wallets have built-in export features for transaction histories.

Crypto Tax Software like CoinTracking

1. Data Aggregation: Crypto tax software like CoinTracking aggregates data from multiple exchanges and wallets, making it easier to compile your transaction history.
2. API Integration: Connect your exchanges and wallets via API to import transactions automatically.
3. Manual Entry: For wallets or exchanges without API support, you can manually enter transactions into the software.
4. Reporting Tools: These tools generate tax reports and summaries that can be used to fill out your tax forms accurately.

How to Use Crypto Tax Forms to Report Your Crypto Transactions

Accurately reporting your crypto transactions to HMRC requires the correct use of the relevant tax forms. Here’s some general advice and how to utilize the forms effectively:

• Compile All Transactions: Gather all your crypto transactions from exchanges, wallets, and DeFi activities.
• Categorize Transactions: Separate transactions into different categories such as capital gains (buying/selling), income (staking/mining), and other relevant activities.
• Calculate Gains and Income: Use the data to calculate your total capital gains and any income received from crypto activities.
• Complete SA100: Fill in the SA100 form with your personal details, income, and deductions.
• Complete SA108: Use the SA108 form to detail your capital gains and losses from crypto transactions.
• Supplementary Pages: Attach any necessary supplementary pages if applicable.
• Review and Submit: Review all the information for accuracy and submit your completed tax return before the deadline.

Optimize Your Crypto Tax Return with CoinTracking

Using crypto tax software like CoinTracking can significantly simplify and optimize your tax return process. Here’s how to make the most of it:

1. Comprehensive Data Import: CoinTracking supports data import from over 300 exchanges and wallets via API or CSV files, ensuring all your transactions are captured.
2. Automated Calculations: The software automatically calculates your capital gains, income, and other relevant tax figures based on your transaction history.
3. Tax Reports: Generate detailed tax reports, including summaries of your gains and losses, which can be directly used to fill out your tax forms.
4. Audit and Verification: CoinTracking offers features for audit and verification, ensuring that your tax reports are accurate and compliant with HMRC regulations.
5. Expert Assistance: Access expert support and resources to help with any tax-related queries or issues.
6. Efficiency and Accuracy: By automating much of the data entry and calculation process, CoinTracking reduces the risk of errors and saves time.

Tips for Creating Your Tax Forms for HMRC

When preparing your tax forms for HMRC, following these tips can help ensure accuracy and compliance.

Organize Your Records

• Keep Detailed Records: Maintain thorough records of all your cryptocurrency transactions, including dates, amounts, transaction types, and values in GBP.
• Use Digital Tools: Leverage digital tools and software to keep track of your transactions and simplify record-keeping.

Understand Taxable Events

• Identify Taxable Events: Recognize which events are taxable, such as selling crypto for fiat, trading between cryptocurrencies, and earning through mining or staking.
• Non-Taxable Events: Understand non-taxable events, such as transferring crypto between your wallets or buying crypto with fiat.

Calculate Gains and Losses

• Accurate Calculations: Use accurate methods to calculate capital gains and losses, considering the cost basis and sale price.
• Deductible Expenses: Include any allowable expenses, such as transaction fees and costs associated with acquiring crypto.

Stay Informed

• Keep Up-to-Date: Stay informed about the latest HMRC guidelines and updates on cryptocurrency taxation.
• Consult Professionals: If needed, consult with tax professionals who have experience with cryptocurrency taxation to ensure compliance and accuracy.

Crypto Tax Forms in Other Countries

Cryptocurrency taxation varies across different countries, and it’s important to understand these differences if you have crypto activities abroad. Here are brief overview.

Canada

The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity. Taxpayers must report capital gains or business income from crypto transactions.

Use the T1 General Income Tax and Benefit Return, Schedule 3 (Capital Gains or Losses), and Form T2125 (Statement of Business or Professional Activities) if your crypto activities are considered a business.

Australia

The Australian Taxation Office (ATO) considers cryptocurrency as property and applies capital gains tax to crypto transactions.

Report crypto activities on the Individual Tax Return (ITR) and the Capital Gains Tax (CGT) Schedule. For business-related crypto activities, use the Business Activity Statement (BAS).

United States

The Internal Revenue Service (IRS) in the United States treats cryptocurrency as property for tax purposes. Taxpayers must report capital gains, losses, and income from crypto transactions.

Use Form 1040 (U.S. Individual Income Tax Return), Schedule D (Capital Gains and Losses), and Form 8949 (Sales and Other Dispositions of Capital Assets) to report crypto transactions.

Conclusion

Reporting cryptocurrency transactions to HMRC can be complex, but using tools like CoinTracking can simplify the process. CoinTracking helps aggregate your data, calculate gains and income, and generate detailed tax reports to ensure accuracy and compliance. By staying informed and using reliable resources, you can effectively manage your crypto tax obligations and avoid potential penalties.

Disclaimer

The information provided in this guide is for general informational purposes only and does not constitute legal, financial, or tax advice. Cryptocurrency tax laws and regulations can be complex and subject to change. It is recommended to consult with a qualified tax professional or accountant who is knowledgeable about cryptocurrency taxation in the UK to ensure that your tax filings are accurate and compliant with current laws. The author and publisher of this guide are not responsible for any errors or omissions, or for any losses or damages incurred as a result of relying on the information provided herein.