HMRC Sends 81,000 Warning Letters to UK Crypto Users Over Unpaid Tax

HM Revenue and Customs (HMRC) has increased its scrutiny of UK crypto users during the 2025-2026 financial year, sending over 81,000 warning letters to holders it suspects may have unpaid tax. This is nearly three times higher than the 27,714 letters sent in 2024.

The tax authority believes a large share of the unpaid tax relates to gains made during the crypto bull run between 2022 and 2025. HMRC reminded recipients that obligations can arise when crypto is sold, given away, exchanged, or used to make purchases.

Failure to pay can result in penalties of up to 100% of the tax owed, in addition to interest. Meanwhile, offshore transfers potentially carry greater consequences.