CryptoTax UK · Guide
HMRC Crypto Nudge Letter — What to Do
HMRC has been sending 'nudge letters' to crypto investors it believes may have unreported gains. If you received one, this guide explains what it means and what steps to take. Educational only — not tax advice; seek specialist advice before responding.
Calculate what I may owe →What is an HMRC crypto nudge letter?
HMRC nudge letters are sent to large groups of taxpayers HMRC believes may have underpaid tax in a specific area. Crypto nudge letters are sent based on data HMRC receives from UK-registered exchanges and blockchain analytics. Receiving one does not mean HMRC has opened a formal investigation.
What should you do if you receive one?
Do not ignore the letter. Review your crypto transaction history and calculate whether you have unreported gains. If you have, use HMRC's Digital Disclosure Service to make a voluntary disclosure and pay any tax owed.
What if you have already reported correctly?
If you have reported all your crypto gains correctly, you can write to HMRC explaining that your tax affairs are in order, with reference to the relevant Self Assessment returns.
Frequently asked questions
Does a nudge letter mean I am under investigation?
Not necessarily — nudge letters are sent to large groups and do not indicate a formal investigation. However, HMRC may open a formal enquiry if you do not respond or if they identify a significant discrepancy.
How do I disclose unreported crypto gains to HMRC?
Use HMRC's Digital Disclosure Service (DDS) at gov.uk. Calculate the tax owed for each year, add interest from the payment deadline, and make a disclosure.
More UK crypto-tax guides
Ready to estimate your UK crypto tax?
Free calculator. No sign-up needed.
Calculate what I may owe →Educational guidance only. CryptoTax UK is not a regulated tax adviser and the information above does not constitute tax, legal or financial advice. Always confirm your specific position with HMRC or a qualified accountant before filing.