UK Mandates Crypto Reporting by 2026
CBAP (CIBA), GTP (SAIT)
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Book a free exploratory callThis piece was originally published in June 2025 and updated in December 2025. It captures the regulatory and reporting landscape as it stood at that time. Some developments described here have since evolved, including the implementation of domestic CARF reporting from 1 January 2026. For current guidance on HMRC's cryptoasset data collection powers, reporting timelines, and what this means for your Self Assessment, see our comprehensive HMRC, CARF and Crypto Audit Risk guide.
Understanding the Cryptoasset Reporting Framework
The CARF, developed by the Organisation for Economic Co-operation and Development (OECD), mandates that Reporting Cryptoasset Service Providers (RCASPs) collect and report detailed information about their users and transactions. This includes:
- Personal Information: Names, addresses, and taxpayer identification numbers.
- Transaction Details: Types of transactions, amounts, dates, and counterparties involved.
- Valuation Information: The value of digital assets at the time of the transaction.
HMRC will utilise this data to detect and tackle tax non-compliance, both domestically and internationally.
The first reports are due by May 31, 2027, covering activities from the 2026 calendar year.
Domestic Reporting: A New Requirement
In addition to international reporting, the UK government has extended the CARF to include domestic reporting. This means that UK-based RCASPs will be required to report on UK residents' digital asset activities. This extension aims to streamline third-party reporting requirements and improve the efficiency of HMRC's operations.
Penalties for Non-Compliance
Failure to comply with CARF reporting requirements can result in significant penalties. Proposed penalties include:
- Late Reports: A fixed penalty of £5,000, with daily penalties of £600 if the failure continues.
- Due Diligence Failures: A penalty of £100 per individual customer for whom due diligence requirements were not met.
These penalties underscore the importance of timely and accurate reporting.
What must I do, and when?
Now (2026): For Preparation and Setup
Make sure your records are accurate and complete across all wallets and exchanges. Assess your use of platforms to ensure they are operating within CARF-compliant jurisdictions. Contact a professional to identify potential tax liabilities from previous years that might affect future reporting.
Before the First Filing Deadline (Q1 2027)
The first reports are due May 31, 2027, covering 2026 calendar year activity. Work with a professional to review and audit all transaction records. They can assist to resolve discrepancies or missing data and ensure your position complies with both international and UK-specific requirements.
You Should Definitely Seek Help If:
- You've traded on multiple platforms or used decentralised exchanges (DEXs).
- You've engaged in complex transactions like staking, NFTs, or DeFi lending.
- You're unsure how to value your digital asset holdings accurately at each transaction point.
- You don't have complete records of all your transactions.
- You're a business or high-volume trader with significant exposure to digital assets.
CountDeFi works with UK investors to help them calculate their crypto gains accurately whilst staying compliant with rules and regulations. If you are not sure where you stand, a conversation costs nothing. Book a free call with our UK team.
Official Sources
- HMRC: Cryptoassets Manual: HMRC's full internal guidance on the tax treatment of cryptoassets.
- HMRC: Check if you need to pay tax when you sell cryptoassets: when a disposal creates a UK tax liability.
- HMRC: Self Assessment tax returns: how and when to file a Self Assessment return.
- HMRC: Penalties for errors in tax returns: how HMRC calculates penalties for inaccurate returns.
- HMRC: Tell HMRC about unpaid tax on cryptoassets: the disclosure route for tax not previously declared.
Frequently Asked Questions
What information will crypto platforms have to report under CARF?
Reporting Cryptoasset Service Providers must collect and report personal information including names, addresses and taxpayer identification numbers, transaction details covering types, amounts, dates and counterparties, and the value of the digital assets at the time of each transaction.
When are the first CARF reports due?
The first reports are due by May 31, 2027, covering activity from the 2026 calendar year.
Does CARF apply to UK residents using UK platforms?
Yes. The UK government extended CARF to include domestic reporting, so UK based providers report on UK residents' digital asset activity as well as on cross border activity.
What are the penalties for failing to report?
Proposed penalties include a fixed penalty of £5,000 for late reports, with daily penalties of £600 if the failure continues, and £100 per individual customer where due diligence requirements were not met.
What should I be doing now?
Make sure your records are accurate and complete across every wallet and exchange, check that the platforms you use operate in CARF compliant jurisdictions, and have any liabilities from previous years identified before they affect future reporting.
Master the topic: Is Crypto Taxed in the UK? Yes, Here's How
Chris Herbst is the founder of CountDeFi, a crypto tax specialist whose qualifications span investment management, financial analysis, mathematical statistics and computer science. He holds the Chartered Business Accountant in Practice (CBAP) designation with the Chartered Institute for Business Accountants (CIBA) and the General Tax Practitioner (GTP) designation with the South African Institute of Taxation (SAIT). His combined background in investments, accounting and tax, mathematical statistics and computer science underpins his work in complex crypto tax reporting. This article is for educational purposes only and does not constitute tax, legal or investment advice. Consult a qualified tax professional for guidance specific to your situation. View our Editorial Policy.
