Moonscape Blog

Reporting Crypto Gains to HMRC

How to Report Crypto Taxes to HMRC

Steps

Before you begin, it's important to determine whether you owe taxes and the exact amount you need to pay. To simplify this process, you can use Moonscape to calculate your taxes for you. Moonscape helps you effortlessly calculate your tax obligations and guides you through completing the necessary self-assessment forms.

  1. Calculate Your Taxes Using Moonscape.app
  2. Report and Pay to HMRC

When it comes to filing your crypto taxes, you'll include them as part of your Self Assessment Tax Return. To provide clarity, here's a condensed guide on reporting crypto activities to HMRC:

  • For crypto capital gains and losses, include them on your SA100 and Capital Gains Summary SA108.
  • For crypto income, report it in Box 17 of your Self Assessment Tax Return (SA100).

You have the option to perform these tasks online through the Government Gateway service or opt for the traditional approach of filing through paper forms sent by post. Keep in mind that the deadline for postal Self Assessment Tax Returns is October 31, 2023.

Update 2023

In the Spring Budget of 2023, the Chancellor unveiled plans to modify the Self Assessment tax return forms. Notably, investors would be required to report crypto assets separately. However, there's no need to worry—these new reporting changes won't take effect until the 2024-2025 tax year.

You can also utilize capital losses to offset your gains. Remember, reporting these losses to HMRC is a prerequisite.

How to Report and Pay to HMRC

You have two main options for reporting and paying taxes to HMRC:

  • Complete a Self Assessment tax return at the conclusion of the tax year.
  • Use the Capital Gains Tax real-time service to promptly report your gains.

It's important to note that the amount of tax owed might differ if you're not a resident in the UK. Refer to this link for more information.

You can report your gains through a Self Assessment tax return during the tax year following the sale or disposal of an asset.

Upon submitting your return, HM Revenue and Customs (HMRC) will provide details regarding the owed amount, payment methods, and due date. You'll receive a letter or email containing a payment reference number beginning with 'x'.

It's important to report by December 31st of the tax year following your gain and make payment by January 31st. For example, if you realize a gain in the 2023 to 2024 tax year, you must report it by December 31, 2024, and make payment by January 31, 2025.

Additionally, you can utilize the 'real time' Capital Gains Tax service for reporting.

For more information, you can explore the following resources: