How new crypto reporting rules could affect you

Crypto and tax: why this matters to you 

Cryptocurrency is no longer just for tech enthusiasts. Many self-employed people and small business owners now buy, sell, or receive crypto – sometimes as an investment, sometimes as payment for goods or services. 

At the same time, HMRC is paying much closer attention to crypto activity. A new international system called the Crypto-Asset Reporting Framework (CARF) will soon give HMRC far more information about people’s crypto transactions than ever before. 

If you include crypto on your tax return – or think you might need to – this is important for you. 

What is CARF? 

The Crypto-Asset Reporting Framework (CARF) is a global reporting system developed by the Organisation for Economic Co-operation and Development (OECD). 

Its purpose is to ensure tax authorities can see information about people’s crypto transactions. 

CARF does not create a new crypto tax

You are already required to pay tax on certain crypto profits and income. CARF just makes it much easier for HMRC to check whether everything has been reported correctly. 

When does this start? 

In the UK, crypto platforms began reporting information under CARF from 1st January 2026. HMRC is now receiving regular data about UK taxpayers’ crypto activity. 

Over time, countries will also share information with each other. That means using an overseas exchange will not necessarily keep your activity outside HMRC’s view. 

Who will report your information? 

Under CARF, reporting is done by crypto businesses known as Reporting Crypto-Asset Service Providers (RCASPs).  In plain English, this usually means: 

• Centralised crypto exchanges 
• Trading platforms 
• Some custodial wallet providers 

If you’ve ever used a well-known exchange to buy, sell, or swap crypto, the likelihood is that those platforms should, in time, be reporting data gathered from 1st January 2026 to HMRC. 

What will HMRC be told? 

RCASPs must collect and report both customer data and transaction details for users who are tax resident in a CARF-participating jurisdiction, including the UK. 

Customer (user) information 

• Full legal name 
• Date of birth 
• Home address 
• Country(ies) of tax residence 
• Tax identification details: 
• For UK residents: National Insurance number (or UTR) 
• For non-UK residents: tax identification number (TIN) and issuing country 

For entity users (e.g. companies, partnerships, trusts) 

• Legal business name 
• Main business address 
• UK company registration number (if applicable) 
• For non-UK entities: TIN and issuing country 

In some cases, information about the controlling persons of an entity may also need to be collected and reported. 

Transaction information 

CARF requires reporting of transaction-level details, including: 

• The type of transaction (e.g. crypto-to-crypto trades, crypto-to-fiat exchanges, transfers) 
• The value of the transaction 
• The type of crypto-asset involved 
• The number of units moved or traded 

This information will be sent in a structured digital format, making it easy for HMRC to compare it with your tax return. 

What does this mean for you as a crypto investor? 

1. HMRC may already know about your crypto activity 

In the past, some people assumed crypto was “invisible” to the tax system. That is no longer a safe assumption. 

Once CARF is in place, HMRC may receive data directly from exchanges showing: 

• When you sold crypto 
• Roughly how much it was worth 
• How often you traded 

HMRC can compare this with what appears (or doesn’t appear) on your self-assessment tax return. 

2. Mistakes are more likely to be spotted 

Crypto tax can be complicated, especially if you: 

• Use more than one exchange 
• Move crypto between wallets 
• Trade frequently 
• Receive crypto as business income 

It’s easy to miss transactions or misunderstand the tax treatment. With CARF, differences between exchange data and your tax return are more likely to trigger questions from HMRC. 

3. Good record-keeping is now essential 

If you deal with crypto, you should keep clear records of: 

• When you bought or received crypto 
• When you sold, swapped, or spent it 
• The value in pounds at each point 

This is particularly important if you accept crypto as payment in your business, as that may create both income tax and capital gains tax  considerations. 

Specialist software – including UK-focused platforms such as Recap.io – can help pull together transaction histories from different exchanges and wallets into one set of tax figures. 

What you should do now

CARF means crypto is becoming part of mainstream tax reporting. You don’t need to panic – but you do need to be accurate and transparent. If you’ve bought, sold, traded, or earned crypto, it’s far better to deal with it properly now than wait for HMRC to raise questions later. 

Need help with your tax return? 

At TaxAssist Accountants, we help self-employed individuals, small business owners, employees and retired individuals understand how crypto fits into their tax position and make sure everything is reported correctly. 

If you’re unsure whether your crypto activity needs to be declared, it’s worth having a conversation sooner rather than later. 

Last updated: 20th February 2026