Crypto Currency Taxes

Complete Crypto Currency Tax Services

Welcome to Fusion Accountants, your trusted partner for all your accounting needs in the UK, with a focus on providing comprehensive services related to cryptocurrency taxation. Cryptocurrencies have revolutionized the financial landscape, offering digital assets that utilize cryptography for secure transactions, decentralized control, and a level of privacy not commonly found in traditional currencies.

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Complete Crypto Currency Tax Services

Cryptocurrency is a form of digital or virtual currency that relies on blockchain technology for secure and transparent transactions. Unlike traditional currencies issued by governments and central banks, cryptocurrencies operate independently of any centralized authority. Bitcoin was the first cryptocurrency, introduced in 2009, and since then, thousands of other cryptocurrencies have emerged, each with unique features and purposes.

What is Cryptocurrency
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Taxation of Cryptocurrency in the UK:

In the United Kingdom, HM Revenue and Customs (HMRC) has provided guidance on the taxation of cryptocurrencies to ensure individuals and businesses comply with the tax laws. It is important to note that the despite being called crypto currency, crypto assets are not regarded as a form of currency or money by the HMRC. The most notable examples of crypto assets are Bitcoin and Ethereum.

For tax purposes, cryptocurrencies are treated as assets, and their tax treatment depends on whether you are dealing in cryptocurrencies as an individual or as a trader and the way you earn these crypto assets. If you buy and sell (dispose of) cryptocurrencies as an individual and not for the purpose of carrying on a trade then HMRC would usually treat these disposals as capital disposals and as a result, Capital Gains Tax (CGT) would apply on the gains and losses made. However, if you are dealing in cryptocurrencies as trading activity, then HMRC would tax the income as trading income.

To determine, if you are involved in a trading activity, HMRC will look for badges of trade e.g if the activity has a profit-seeking motive or it is systematic and repetitive. If you have received cryptocurrencies as a consideration or reward, then HMRC will usually tax this as either trading or miscellaneous income. The distinction between trading income and miscellaneous income is important as no class 4 National Insurance contribution is payable on miscellaneous income. Typical examples where you receive cryptocurrency as a reward are as follows.

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Other Forms of Cryptocurrency Income


Mining is a process where you solve complex mathematical problems by investing and utilizing your computing assets (Powerful computers). This maintains the integrity of the network. The network will reward the miners with some of the underlying crypto assets e.g. Bitcoin.


Staking involves locking your crypto assets for a specified period in return for some crypto assets as a reward. Staking is just like mining and is meant to secure the network.


In an airdrop, you receive crypto assets in your crypto wallet for some reason. Usually, crypto assets are airdropped as a reward for completing some activity relating to social media campaigns e.g sharing a profile of the project on social media.

Employment income

If you have received crypto assets from your employer in consideration of your services, you will need to pay income tax on them.

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Why Choose Fusion Accountants for Crypto Tax Services?

Navigating the complexities of cryptocurrency taxation requires expert knowledge and experience, and that’s where we come in. At Fusion Accountants, our team of seasoned professionals specializes in cryptocurrency tax matters, ensuring that your tax compliance is seamless and optimized. We stay up-to-date with the latest regulatory changes and industry trends to provide you with accurate advice and guidance tailored to your unique situation.

Whether you are an individual investor, a crypto trader, or a business involved in the crypto space, our comprehensive services cover tax planning, compliance, return preparation, CGT calculations, HMRC communication, and tax advisory. Let us help you maximize your financial potential while ensuring full compliance with the UK’s cryptocurrency taxation laws.

Contact us today to schedule a consultation, and let’s embark on a journey towards financial success in the exciting world of cryptocurrencies!

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Need help with Crypto Currency Taxes?

Speak to one of our Qualified Tax Advisor to see how we can help!


Meet our senior partner

Jawaad Hussain

Jahan Aslam

Senior partner

I trained as an auditor with top 20 accounting practices in UK and worked in numerous roles before joining Fusion in 2013.

With over 15 years of experience, my specialisms include assisting SME businesses with business advice and to provide support to achieve growth goals, process standardization and model their business plans.

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