HMRC is sending more crypto tax warning letters: what to do
About 81,000 crypto warning letters went out in the past 12 months, up around 25%. Here is what they say and what to do if you get one.
Sham Sadiq· 1 min read
HMRC is sending far more crypto tax warning letters. Figures reported by UHY Hacker Young show about 81,000 went out in the past 12 months, up around 25% on the 65,000 sent the year before.
What the figures show
- About 81,000 letters were sent to crypto holders in the past 12 months.
- That is up about 25% from 65,000 the year before.
These are figures reported by UHY Hacker Young, based on Freedom of Information data. They are not official HMRC statistics.
What the letters say
The letters say you may have underpaid your tax, or not paid it at all. They focus on Capital Gains Tax on crypto, such as selling for pounds or swapping one token for another.
A letter is not a penalty
Receiving a letter is not a penalty in itself. But ignoring it could lead to an investigation, and a formal investigation that finds unreported gains can lead to penalties.
What to do
- Gather your transactions from every exchange and wallet.
- Check that each disposal and the gain or loss on it is recorded correctly.
- Fix any gaps or errors before your next Self Assessment return.
If you’ve had a letter, or aren’t sure your records are right, get in touch with Swabi and we’ll help you get them in order.
This article is general guidance, not personal tax advice.
Sources
This article is general information based on HMRC guidance at the time of writing and isn't personal tax advice. Rules change, so please get advice for your own circumstances.
