What tax do I pay on Bitcoin and crypto?

We've updated this guide on 3rd July 2019

Key points about crypto taxes:

Cryptocurrencies are legal in the UK
You must keep records of your crypto transactions
HMRC treats profits occurring when exchanging crypto to GBP as subject to capital gains tax by default
If you’re accepting crypto for your sole trader services, treat them as payments in a foreign currency.

Do I pay taxes on mining crypto?

Yes, if the value of the coins you got from mining is over £1,000 in GBP equivalent.

Basically, HMRC treats cryptocurrency miners as traders, so you need to pay:

income tax
national insurance.

The good news: you can also claim expenses like electricity and mining rigs.

What if I trade often?

In theory, you should declare yourself a trader to HMRC and pay income tax and National Insurance.

Otherwise, you will be considered an investor by default and pay CGT.

Can I get relief on my crypto losses?

Yes, but only for the same kind of income (investments or trading income, depending if you registered as a trader or not).

Do I need to worry about VAT for crypto transactions?

According to HMRC:

no VAT on mining;
no VAT for crypto-to-sterling or sterling-to-crypto exchanges;
if you charge cryptocurrencies for selling goods or services, then you need to calculate and pay VAT – in GBP.

Invest wisely.

More guides & useful information

How TaxScouts works

1. Simple online tax assessment

Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.

2. Chat to human advisors

You can talk to one of our tax assistants at any time during the process when you have any questions.

3. We’ll sort your documents online

We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.

4. Everything gets prepared for you

Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.

Get started

"Absolutely outstanding"

Very quick turnaround, all my questions answered almost immediately and brilliant value.

Aimee J

"Smooth and easy process"

Smooth and easy process. Will use every year! Very helpful staff as well!

Oliver J W

"A quick and reliable service"

My self assessment tax return completed within 2-3 days. I'll definitely be using TaxScouts again and recommend to family and friends.

Munim

Who our service is for

First time tax filers

We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.

Construction workers

We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.

People living overseas

Our service allows people living abroad to prepare their income tax return online. We are able to process all returns regardless of your current country of residence.

Company directors

UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.

Landlords

Long Lets, Airbnb, Capital Gains. TaxScouts will sort out your self assessment and take away the worry of tracking all the recent tax changes.

Self-employed

TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.

And for everyone else who needs to do their self assessment

At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.