Avoid HMRC trouble in 2025. Here are the 7 crypto tax mistakes that UK traders keep making — and how to stay compliant.
Introduction
Crypto tax in the UK isn’t optional anymore. HMRC has doubled down in 2025, with data-sharing agreements across exchanges and an army of letters landing in mailboxes. The good news? Most penalties come from avoidable mistakes.
Here are the 7 biggest mistakes UK crypto traders are still making in 2025 — and how you can avoid them.
1. Ignoring Staking Rewards
HMRC treats staking rewards as income, not capital gains. Forgetting to declare them can trigger audits.
2. Thinking VPNs Hide You
A VPN hides your IP, not your tax obligations. Exchanges still report directly to HMRC.
3. Mixing Wallets and Personal Accounts
Using one wallet for business and personal trades is messy. It creates reconciliation nightmares during tax season.
4. Not Reporting NFTs
Yes, NFTs count. Whether you’re flipping PFPs or minting art, profits are taxable.
5. Forgetting Loss Relief
If you don’t report losses, HMRC won’t apply them. Traders lose thousands every year by failing to claim.
6. Missing the January 31 Deadline
HMRC penalties start at £100 for late filing and escalate quickly. Procrastination is expensive.
7. Relying on Exchange Balances Only
Exchanges don’t show the full picture. Wallets, swaps, and DeFi all count as disposals.
Conclusion
Avoid these mistakes and you’ll cut your stress — and possibly your bill.
👉 At TaxAnon, we turn messy CSVs and wallets into HMRC-ready reports in just 48 hours.