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HM Revenue and Customs sent 81,172 letters, emails, and text messages to crypto investors during the 2025-26 financial year, warning of possible unpaid tax, according to figures obtained through Freedom of Information request.
The total rose from 64,982 in 2024-25 and roughly 27,700 two years earlier, showing a sharp increase in HMRC’s crypto-related compliance activity.
Crypto Tax Warnings Rise 25% From 64,982 in 2024-25
The latest figure is about 25% higher than the 64,982 messages issued in 2024-25 and almost three times the total reported for 2023-24.
HMRC uses the communications, often called nudge letters, to encourage taxpayers to check whether crypto income or capital gains have been correctly declared before further compliance action.
Crypto does not need to be converted into pounds to create a taxable disposal. HMRC says selling tokens, exchanging one cryptoasset for another, spending crypto or giving it to another person can trigger Capital Gains Tax.
For 2026-27, individuals have a £3,000 annual Capital Gains Tax exemption. Applicable gains are generally taxed at 18% or 24%, depending on the investor’s taxable income.
First CARF Reports Are Due by May 31, 2027
The compliance increase comes as HMRC gains access to more standardized crypto transaction data through the Cryptoasset Reporting Framework.
U.K. reporting cryptoasset service providers have been required to collect specified customer and transaction information since January 1, 2026. Their first reports must be submitted between January 1 and May 31, 2027, and will cover the 2026 calendar year.
Providers report U.K. tax residents as well as users resident in participating CARF jurisdictions, allowing tax authorities to exchange relevant information internationally.
Crypto Disclosure Service Lets Investors Correct Unpaid Tax
HMRC also operates a dedicated disclosure service for people who identify unpaid tax involving exchange tokens, NFTs or utility tokens.
Taxpayers must calculate the tax, interest and applicable penalties they owe before submitting a disclosure. HMRC then issues a payment reference, and the amount due must normally be paid within 30 days of the disclosure.
The first CARF dataset will give HMRC another source for comparing reported tax positions with crypto activity. For U.K. investors, transactions carried out during 2026 are already being captured for reports due next year.
