Tax return reminder for cryptoasset users

Anyone with cryptoassets should declare any income or gains above the tax-free allowance on a Self Assessment tax return.

With the use of cryptoassets growing, HM Revenue and Customs (HMRC) is urging people to avoid potential penalties and check if they need to complete a Self Assessment tax return for the 2022 to 2023 tax year.

Declaring cryptoasset income

Anyone with cryptoassets, such as cryptocurrency or bitcoin, should declare any income or gains above the tax-free allowance on a tax return. Tax may be due when a person:

• receives cryptoassets from employment, if they’re held as part of a trade, or are involved in crypto-related activities that generate an income 
• sells or exchanges cryptoassets, including:
  • selling cryptoassets for money
  • exchanging one type of cryptoasset for another
  • using cryptoassets to make purchases
  • gifting cryptoassets to another person
  • donating cryptoassets to charity

See how cryptoassets are taxed.

Do I need to complete a tax return?

If HMRC customers are unsure whether they need to complete a tax return, they can use the free online tool to check if they need to send a Self Assessment tax return.

Submit your tax return and pay your bill

Self Assessment customers can file their Self Assessment tax return online.

HMRC’s free and secure app is the quickest and easiest way customers can pay their tax bill. See the different ways to pay your Self Assessment tax bill.

Customers who are unable to pay in full can access support and advice from HMRC. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay for customers who owe less than £30,000.

Penalties

HMRC will consider a customer’s reasons for not being able to meet the deadline. Those who provide HMRC with a reasonable excuse may avoid a penalty. The penalties for late tax returns are:

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, another 5% or £300 charge, whichever is greater

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months, and 12 months. Interest will also be charged on any tax paid late.

First published 10 January 2024