His Majesty’s Revenue and Customs (HMRC), the government department collecting taxes from UK users, classifies crypto among taxable assets. Although most crypto traders know this, they often struggle to compile their crypto tax for the year. This is especially true for those using various crypto exchanges and wallets. Regardless of your needs, you can get the best crypto tax software in the UK.
Crypto tax software is a platform that saves you from the pain of manually calculating crypto taxes. Through automated tools and support from professionals, these UK crypto tax software offer retail and institutional clients the much-needed guardrail to fulfill their tax obligations.
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Whether you’re an investor whose funds are spread across various platforms, a crypto business owner, or an active crypto trader with numerous transactions, this article offers the seven best crypto tax software tools for you to choose from.
What are the latest updates on tax rules for crypto in the UK?
According to the HMRC, crypto tax rules in the UK are applicable across capital gains and income from crypto assets.
These capital gains concern the profit or loss from the sale, swap, or trade of crypto. If the record shows a loss, the applicable tax is deducted. Conversely, when investors record profits, they are to pay a tax as long as it is below the annual tax-free allowance (currently at £3,000). Currently, the HMRC imposes a tax rate of 18% to 24% on capital gains.
Income from cryptocurrencies includes proceeds from staking, mining, airdrops, lending, DeFi, NFTs, and bug bounties. These incomes are subject to taxation under HMRC law. However, those with an annual income below £12,570 face no taxation. Still, the country’s tax regulator imposes up to 45% tax on income.
The UK tax year runs from April 6th to April 5th the following year. The government department requires that taxes be paid online (January 31st) or offline (October 31st) after the tax year ends. Those who fail to pay their taxes after 30 days face 5% of their taxes added to their tax debts. After three months, a daily £10 is imposed. The figures increase as the taxpayer delays.
Are crypto users required to report their transactions to HMRC?
Yes, crypto users are required to report their transactions to HMRC. However, HMRC has introduced a new directive that changes the narrative. Starting January 1st, 2026, crypto service providers will collect relevant data from UK users and share it with the HMRC to ensure compliance. The personal details include full name, address, date of birth, tax residence(s), National Insurance number, and crypto transaction history. Failure to comply brings a fine of up to £300 for each user.
How does crypto tax software help UK traders and investors?
Crypto tax software makes it easier for UK traders and investors to comply with the country’s tax rules.
Most traders have active accounts on crypto exchanges, wallets, NFT marketplaces, DeFi protocols, and more. HMRC’s laws mandate users to pay taxes on capital gains and crypto incomes on their crypto holdings across all platforms. Achieving this feat is grueling and time-consuming for investors.
While saving your time, crypto tax software makes it easy to keep track of your transaction history across these platforms. With all your transactions on one screen, the tool ascertains the applicable tax on each trade. They also help clients to optimize their taxes, reducing taxes whenever possible, such as in cases of loss. What is more, these platforms prepare and submit HMRC-ready tax reports before the deadline.
To keep their services up and running, most UK crypto tax software providers introduce various pricing tiers to users.
Top 7 tax software for crypto in the UK
Here are the top seven crypto tax software providers in the UK:
Koinly
Koinly is a crypto tax tool that eases the process for users seeking to calculate and report their crypto taxes to the appropriate authority. The platform helps its clients to synchronize their transactions across various blockchains, decentralized finance (DeFi) protocols, and crypto exchanges. The crypto tax solution also ascertains the market price at the time of trade and calculates the crypto capital gains accordingly.
Koinly claims that it can complete these crypto tax reports in less than 20 minutes. The service is available in over 20 countries, including the UK.
The UK crypto tax software also features other products, such as the Crypto Tax Calculator, Crypto Profit Calculator, and the portfolio tracker.
Pricing: The platform has four pricing tiers:
- Free
- Newbie (£36.51 per tax year)
- Hodler (£73.76 per tax year)
- Trader (£148.26 per tax year)
Portfolio tracking feature availability: Koinly offers this feature for users across all pricing tiers.
Key features user-friendliness: Reviews on Koinly’s services show that its features are user-friendly.
Free trial availability: Koinly has a free trial that enables various features.
HMRC-ready tax reports: Koinly allows users to access HMRC-ready tax reports.
Best for Crypto Traders Seeking HMRC-Compliant Tax Reports
Blockpit
Ranked among the top crypto tax solutions, Blockpit is a platform that helps users fulfill their tax obligations. It tracks their crypto assets across crypto exchanges, wallets, DeFi protocols, NFT collections, and more. According to its website, it monitors data across 500,000 digital assets.
Using this data, Blockpit offers its “Crypto Tax Optimizer” feature. This allows users to tap into various tax-saving opportunities, effectively downsizing losses over the long term and boosting return on investments (ROI). It provides its services to users in over 100 countries, including the UK.
Pricing: Here are the pricing tiers available on Blockpit:
- Free
- Lite (£49 per tax year)
- Basic (£99 per tax year)
- Pro (£219 per tax year)
- Blockpit’s Unlimited plan is £529 per tax year
Portfolio tracking feature availability: It supports portfolio tracking.
Key features user-friendliness: Blockpit’s key features are user-friendly.
Free trial availability: It has a free version.
HMRC-ready tax reports: Blockpit offers HMRC-ready tax reports.
Best for Investors Seeking a Crypto Tax Optimizer
CoinTracker
CoinTracker is a crypto tax software that enables users to track their portfolio and maximize their tax savings. According to its website, the crypto tax solution helps its users file their taxes within five minutes. It also has a tax optimization feature to help users maximize their tax benefits.
The platform monitors on-chain activities across over 500 crypto exchanges, wallets, and blockchains. It also tracks portfolios on over 50,000 smart contracts and 600+ DeFi protocols. Since its debut in 2017, CoinTracker has garnered a global user base of three million users.
Pricing: Here’s a breakdown of the pricing tiers available on CoinTracker:
- Free (for beginners)
- Base (Simple): £43.96/year
- Prime (Optimized): £148.26/year
- Ultra (Advanced): £446.26/year
- Full Service (Bespoke): £2606.8/year
Portfolio tracking feature availability: It supports portfolio tracking.
Key features user-friendliness: Reviews show that the key features are intuitive.
Free trial availability: Yes
HMRC-ready tax reports: Yes
Best for Fast and Efficient Crypto Tax Filing
TokenTax
TokenTax is a crypto tax software that allows users to manage their portfolio and access their tax loss harvesting dashboard. Living up to its commitment to feature any crypto exchange, the platform enables users to upload the CSV (comma-separated value) through its CSV template manually. Aside from crypto, the crypto tax tool also covers taxes on DeFi protocols and NFT projects.
Fostering flexibility, TokenTax allows users to decide whether they will manually calculate and report their taxes using available tools or leave everything for the project’s experts to handle. However, the latter is available solely for VIP users.
Pricing: Here are the applicable fees for various tiers:
- Basic: £48.43 per tax year
- Premium: £148.26 per tax year
- Pro: £1489.28 per tax year
- VIP: £2606.8 per tax year
Portfolio tracking feature availability: Yes
Key features user-friendliness: Its features are user-friendly, especially for high-end users and crypto business owners.
Free trial availability: Unlike most crypto tax tools, TokenTax has no free trial.
HMRC-ready tax reports: Yes.
Best for Flexibility Between Manual Crypto Tax Reporting and Crypto Tax Software
KoinX
KoinX is a platform for crypto taxes where users can manage their crypto holdings across various interfaces and ascertain the applicable taxes. According to its website, KoinX supports over 25,000 crypto assets, NFTs, DeFi, and 800 exchanges and wallets. KoinX’s key features include its crypto tax calculator, tax reports, and portfolio insights.
It is available to customers across over 100 countries, including the UK. The platform also boasts a user-friendly interface, making it easy for new investors to perform their tax obligations.
Pricing: Here is a breakdown of KoinX’s pricing tiers:
- Newbie: £14.99/tax year
- Hobbyist: £24.99/tax year
- Hodler: £74.99/tax year
- Pro: £99.99/tax year
- Titan: £149.99/tax year
- Whale: £199.99/tax year
Portfolio tracking feature availability: Yes.
Key features user-friendliness: They are user-friendly.
Free trial availability: Yes.
HMRC-ready tax reports: Yes.
Best for UK Investors Seeking Flexible Pricing Tiers
CoinLedger
CoinLedger is a crypto tax tool that enables users to calculate and submit the applicable tax on their capital gains. At the forefront of its services are the free portfolio tracking feature and automated tax imports. It also features integration with DeFi and NFT projects.
The platform offers users the flexibility to choose between lodging their tax reports themselves using available tools or seeking the help of professionals for a fee. Over 700,000 users globally see CoinLedger as the best software for crypto taxes.
Pricing: CoinLedger offers two pricing packages for clients. They are:
Tax Reports (DIY):
- Portfolio tracking: Free
- Hobbyist: £36.51
- Investor: £73.76
- Pro: £148.26+
Professional Services:
- Expert Review: £371.76
- Done for you: £372.51/hour
- Tax Return Prep: Starts at £745.01
Portfolio tracking feature availability: Yes.
Key features user-friendliness: The crypto tax tool’s key features are user-friendly.
Free trial availability: Yes. However, it is limited to solely portfolio-tracking.
HMRC-ready tax reports: Yes.
Best for UK Users Seeking to Fulfill Their Tax Obligations
Taxbit
Taxbit is a crypto tax software tailored to meet the needs of end-users and enterprises across over 140 countries, including the UK. Among its selling points are the Enterprise Tax and Enterprise Accounting, which help bring clarity on users’ crypto taxes.
Unlike most crypto tax tools that focus solely on crypto platforms and DeFi protocols, Taxbit serves customers across various industries. They include digital asset brokers, traditional brokers, payment processors, gaming, banks, funds, and corporate adopters. The platform also offers educational materials to bring users and developers up to speed.
Pricing: Free.
Portfolio tracking feature availability: Yes.
Key features user-friendliness: Taxbit’s key features are user-friendly.
Free trial availability: Yes.
HMRC-ready tax reports: Yes
Best for Institutional Enterprises Seeking Automated Crypto Tax Tools
Crypto tax software vs manual crypto tax reporting
When it comes to paying taxes on your cryptocurrency in the UK, you have two main options: using crypto tax software or doing it manually. Each has its pros and cons.
Crypto Tax Software
Pros
- Saves time.
- Reduces errors.
- Handles complex activities.
- Generates ready-to-file reports.
Cons
- Most packages are expensive.
- Not all exchanges are supported on some platforms.
- Relies on complete data to provide accurate tax reports.
Manual Crypto Tax Reporting
Pros
- No subscription cost.
- Full control.
- Suitable for those who seldom use crypto.
Cons
- Time-consuming.
- Higher risk of human errors.
- Harder for complex portfolios.
FAQs
Is free crypto tax software a good choice?
Free crypto tax tools can work if you only have a few simple transactions. However, they usually lack advanced features like DeFi or NFT tracking and may not generate HMRC-ready reports. For anything beyond basic usage, a paid tool is often worth it.
Is an accountant still necessary if I use crypto tax software?
Software makes calculating and organizing your data much easier. However, an accountant can still be valuable if your situation is complex. They can help with tax planning and double-checking your returns.
Can I do crypto taxes without software?
Yes, you can calculate everything manually, apply HMRC’s rules, and fill in your forms. But this takes time, is prone to mistakes, and becomes more difficult with more transactions.
How can I tell if a crypto tax tool complies with HMRC?
Check that it applies UK-specific rules, such as the Same-Day and 30-Day rules and Section 104 pooling. It should generate UK tax forms like the Capital Gains Summary (SA108) and handle income events like staking or airdrops. Always ensure it reports in GBP and clearly states UK compliance.
Conclusion
Crypto tax solutions are a go-to option for investors seeking an efficient way to address their tax obligations with no risk of human errors. Choosing the right platform depends on your particular needs. This guide lists the seven best crypto tax providers. So, ensure you check their supported features to make well-informed decisions.
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