Here’s What Business Owners Need to Know

You’ve dipped a toe into the world of crypto. Maybe you’ve made a few trades, bought an NFT, or had a go at staking. But here’s the question that catches a lot of people out:

Do I need to declare crypto on my tax return?

If that’s you, you’re not alone. Many business owners, sole traders and investors don’t realise that dabbling in crypto can come with tax implications. And the last thing you want is a knock on the door from HMRC.

Let’s break it down.

Yes, Crypto Can Be Taxable

When you hear the word crypto, most people think of Bitcoin, Ethereum or NFTs. What you might not think about is the fact that crypto assets are treated as taxable by HMRC, depending on what you’ve done with them.

There are two main types of tax that could apply:

1. Capital Gains Tax (CGT)

This is the same tax you’d pay if you made a profit selling shares or a second home.
If you’ve sold, swapped, gifted or otherwise disposed of crypto assets, and made a gain - you may owe CGT.

2. Income Tax

If you’re earning crypto through mining, staking, or receiving crypto as a form of payment, HMRC may class it as income, which means income tax and possibly National Insurance could apply. That’s the same tax you’d pay on your salary or rental income.

Why It Matters Now More Than Ever

HMRC has been tightening its rules and guidance on crypto. And yes, they’re watching. They’ve already written to UK taxpayers asking for full disclosure of crypto activity. Ignoring it or assuming it doesn’t apply to you is risky.

If you don’t declare your crypto income or gains, you could face penalties or interest charges, even if it was unintentional.

So, what should you do?

What You Need to Do if You’ve Bought or Sold Crypto

If you’ve made any transactions involving crypto (buying, selling, staking, gifting, earning, or even swapping one crypto for another) it’s important to get your tax reporting right.

Here’s your simple 3-step checklist:

1. Track your transactions – Dates, amounts, value in GBP, and what happened (e.g. sold ETH for GBP, swapped BTC for SOL, etc).
2. Calculate any gains or income – This can be tricky, especially if you've done lots of transactions.
3. Declare it on your Self Assessment return – You’ll need to complete the capital gains and/or additional income sections.

If that all sounds a bit overwhelming, don’t worry.

Let’s Get You Back in Control

At Carthy Accountants, we help individuals and small business owners get clarity on their crypto tax obligations, so you can stay compliant, avoid unnecessary penalties, and get peace of mind.

Whether you’ve done a handful of trades or you’re heavily involved in crypto investments, we’ll help you:

• Understand what needs to be declared
• Report it accurately to HMRC
• Plan ahead for any tax liabilities
• Stay up to date with changing guidance

Don’t Leave It Too Late

Tax return season can be stressful enough without worrying about what HMRC might uncover. If you’re not sure whether your crypto activity needs reporting, or you just want to make sure you’re doing everything right, we’re here to help.

Get in touch with us today and we’ll help you get it sorted.

Get the Business You Want

Your business, and your financial choices, should give you the freedom to enjoy life, not keep you up at night worrying about tax. If crypto is part of your portfolio, let’s make sure it’s handled properly.

Getin touch. Helping you get the business (and peace of mind) you want.