HMRC's crypto disclosure service nets £4m in two years [UK]

HMRC's cryptoasset disclosure service has collected £4,154,316 since launching in November 2023. The two-year haul is modest, particularly given HMRC sent over 100,000 nudge letters prompting investors to come forward with unpaid tax on crypto gains.

The voluntary service allows taxpayers to correct undeclared capital gains tax (CGT) on crypto disposals, or income tax and National Insurance on mining, staking, or trading earnings. Disclosure typically attracts lower penalties than HMRC investigations, where fines escalate sharply.

New reporting rules now live

As of 1 January 2026, the OECD's Cryptoasset Reporting Framework (CARF) mandates UK crypto platforms to collect and report user data (name, address, National Insurance number, transaction details) to HMRC. Platforms face £300 fines per user for non-compliance. Around 50 UK crypto businesses are affected, with first reports due in 2027.

HMRC projects CARF will recover £315m in unpaid crypto tax by 2030. The timing matters. Bitcoin climbed from £38,000 in August 2024 to £86,000 by January 2025, expanding the pool of taxable gains.

Low disclosure numbers raise questions

The £4m figure suggests either limited tax evasion or poor awareness among crypto holders. HMRC issued 65,000 nudge letters in 2024-25 alone, up from 27,700 the prior year. The 2024-25 Self Assessment now includes dedicated crypto sections, signalling enforcement is tightening.

Accountants should note that voluntary disclosure remains the cheaper route. Post-2026, with platform data flowing directly to HMRC, automatic penalties become harder to avoid. Clients holding cryptoassets need to reconcile transactions now, not later.

Amit Puri, former tax inspector and MD of Pure Tax Investigations, will speak on HMRC's investigation approach at the Finance, Accounting & Bookkeeping Show, 11-12 March, NEC Birmingham.

The voluntary window is narrowing. CARF data sharing starts next year. If clients have undeclared crypto gains, this is the time to lodge corrections on favourable terms.