What should I do with my HMRC Crypto Currency letter?

If you have received a Crypto Currency letter from HMRC, here's what to do...

Verify and Check

• Check the letter: Confirm it is genuine using official GOV.UK contact channels.

• Note the deadline: You typically have 60 days to respond and take action.

• Do not ignore it: Ignoring the letter can lead to higher penalties and investigations.

Review Transactions

• Gather data: Collect records from all your exchanges, wallets, and platforms.

• Identify taxable events:

  • Selling crypto for pounds or other fiat currency.

  • Exchanging one token for another.

  • Spending crypto on goods or services.

  • Earning crypto via staking, mining, or airdrops.

Reconcile and Report

• Use software: Run your history through crypto reporting tools like Koinly or CoinTracker. 

• If tax is owed: Disclose and pay via the official disclosure service or amend a recent Self Assessment return.

• If no tax is owed: Prepare your supporting evidence and respond to HMRC explaining why no extra tax is due.