HMRC is cracking down on crypto. Here are 5 red flags that trigger crypto tax audits in 2025.
Intro
Worried about getting audited by HMRC? You should be — they’re actively monitoring crypto transactions in 2025.
Here are the top 5 triggers that put UK traders on HMRC’s audit list.
Trigger 1: Exchange Data Doesn’t Match Your Tax Return
HMRC receives trading data directly from Coinbase, Binance, Kraken, and others. If your return doesn’t line up — red flag.
Trigger 2: Large Transfers With No Explanation
Moving £50k+ into or out of crypto wallets without reporting = automatic suspicion.
Trigger 3: Undeclared NFT or DeFi Activity
NFT sales, staking rewards, liquidity pools — HMRC expects all of it declared.
Trigger 4: Ignoring an HMRC Letter
The fastest way to escalate from a warning → investigation is to do nothing.
Trigger 5: Social Media “Flexing”
Yes — HMRC monitors public posts. If you brag about gains online but don’t report them, expect trouble.
Final Thoughts
Audits are stressful, expensive, and avoidable — if you file correctly.
👉 At TaxAnon, we reconcile your wallets and exchanges into a compliant report that passes HMRC scrutiny in 48 hours.
🔗 Stay off HMRC’s audit radar