HMRC’s latest qualitative study into cryptoasset investors and industry participants offers a revealing glimpse into how the department is thinking about crypto — and where the tax authority’s enforcement may head next.
When was HMRC’s crypto research published?
Published on May 21st 2026, you can view the HMRC research here.
For ContractorUK readers, many of whom are digitally-savvy, invest independently, and may already hold crypto alongside contracting income, this official crypto research is less an academic exercise and more a roadmap of HMRC’s future approach, writes Dan Mepham, managing director of SG Accounting.
What is HMRC’s crypto research called?
Based on in-depth interviews, conducted between October 2024 and January 2025, the research is entitled “Qualitative research with Cryptoasset investors and industry participants: enhancing HMRC’s insight into to [sic] the cryptoassets industry and investors’ interactions with the tax system.”
What can contractors take from the HMRC research?
Despite the potentially telling nature of the research regarding future HMRC crypto tax reporting, the 7-part “Research and Analysis” paper merely confirms what many contractors already suspect.
And that is that crypto is moving mainstream, with investors ranging from high-net-worth individuals to casual participants.
What is a CASP?
Crucially, both investors and CASPS — that’s Cryptoasset Service Providers (CASPs) — said they expect increased regulation, particularly around “tax compliance” and “investor protection.”
That’s an important signal. It shows HMRC isn’t simply reacting anymore — it’s preparing for scale.
Contractors can read 2.2 “Key Findings” for the headlines about CASP regulatory expectations, or section “6.3,” the “UK’s cryptoasset market” for the drill down.
What is the crypto compliance gap?
One of the key findings of the HMRC research is the disconnect between awareness of cryptoasset-related tax obligations and execution.
This is the crypto compliance gap.
High-net-worth investors generally understand that crypto gains are taxable, often under Capital Gains Tax. However, HMRC’s researchers (Ipsos) found that even sophisticated users struggle with the practical calculation of gains, especially across multiple wallets, exchanges, and transactions.
Who doesn’t typically know cryptocurrency is taxable?
Less experienced cryptoasset investors often have limited or incorrect ‘crypto-tax’ understanding, with some newcomers to Bitcoin disposals unaware that cryptocurrency is taxable at all.
For contractors, this might ring particularly true.
Many atypical work professionals operate across multiple income streams — dividends, retained profits, and investments. And for them, crypto simply adds another layer of complexity.
What does HMRC say about crypto tax compliance?
According to the research, HMRC knows the system of taxing crypto is hard to comply with — and that non-compliance isn’t always deliberate.
Or as the Revenue puts it, “The findings suggest a need for continued clarity and guidance from relevant regulatory bodies and HMRC.”
Data is coming: the CARF game-changer
Perhaps the most significant regulatory element is the introduction of the Cryptoasset Reporting Framework (CARF).
Obligations under CARF have been effective since January 1st 2026.
CARF enables the automatic exchange of tax-relevant crypto transaction data between jurisdictions.
At the time of the research, CARF had yet to take effect.
What are three effects of CARF?
Under CARF, in practical terms:
- Exchanges and platforms will report user activity to tax authorities
- HMRC will gain direct visibility of transactions, not just self-reported figures
- Cross-border activity becomes far easier to track.
What about contractors hoping HMRC can’t track crypto?
CARF mirrors the shift we saw with offshore banking transparency a decade ago.
Therefore, for contractors hoping their crypto might remain ‘under the radar,’ that window is rapidly closing.
[Editor’s Note: Individuals with such hopes are clearly distinct from those in the HMRC research, “who assumed that it could [be taxable by HMRC] be if they made gains above a certain amount, but [they claimed they] did not always know further details.”]
What 3 things make crypto complex in taxation?
The HMRC crypto research repeatedly highlights complexity as a core issue when trying to gauge exposure to crypto asset taxation.
Three sources of such complexity were identified:
- Calculating gains across frequent trades is difficult
- Activities like staking, yield farming, and token swaps lack perceived clarity
- Third-party tax software is widely used but not fully trusted by users.
What do crypto investors want from HMRC?
Interestingly, according to the research, crypto investors expressed a desire for HMRC-approved tools or standardisation.
This is telling.
But when taxpayers ask for simplification, it often precedes enforcement.
That’s because in HMRC’s eyes, complexity breeds risk.
Will Autumn Budget 2026 contain new crypto tax proposals?
While this new crypto research and analysis from the taxman is not policy, it strongly hints at a possible direction of travel.
It is difficult to predict if the Autumn Budget 2026 (likely to be in October or November) will represent a key step on that journey.
What four HMRC crypto enforcement areas should be on contractors’ radar?
But there are four areas that contractors and others holding, trading or earning crypto assets would be wise to look out for:
1. Increased reporting obligations
With CARF bedding in, the next logical step would be formal reporting requirements for individuals, potentially aligning crypto disclosures with Self-Assessment more explicitly.
2. Standardised calculation frameworks
Expect clearer — or even mandated — methods for calculating gains, particularly for complex activities like DeFi and staking.
3. Nudge campaigns and targeted compliance
Thanks to this research, HMRC now understands where crypto tax confusion lies.
That new knowledge has the potential to lead to target ‘nudge letters’, data-driven compliance checks, and possibly, sector-specific ‘Pay your tax on crypto assets’ campaigns.
4. Greater scrutiny of ‘non-reporters’
As the research unearths that some investors lack awareness altogether, HMRC is likely to focus on those who have never disclosed crypto activity.
Four practical takeaways for crypto contractors
For UK contractors holding crypto, the message from this HMRC cryptoasset investor research is straightforward, if a tad stark.
Here are four actionable, practical takeaways:
1. Record-keeping is non-negotiable
Track every transaction — buys, sells, swaps, staking rewards.
If HMRC can see your data, you need to reconcile it.
2. Don’t rely solely on software
Tools help, but ultimate responsibility sits with you, the taxpayer. Sanity-check outputs, especially if using multiple platforms.
3. Understand taxable events
It’s not just cashing out to GBP.
Crypto-to-crypto trades, staking rewards, and some DeFi activity can all trigger tax.
4. Engage your accountant early
The research notes growing but still evolving expertise among generalist accountants.
See the section entitled ‘Tax: Attitudes, awareness, and understanding.’
Therefore, if you're holding crypto, make sure your accountancy firm is up to speed — or works with crypto tax specialists where needed.
Final thought: from crypto curiosity to compliance
HMRC’s May 2026 UK cryptoasset market research marks a shift from curiosity to operational intent.
The tax authority now has a clearer picture of the behaviours, pain points, and risk areas related to both individual cryptoasset investors and cryptoasset service providers.
For contractors, the key takeaway from the research is clear: crypto is no longer a niche side activity. It’s a visible, trackable, and increasingly regulated part of UK taxpayers’ financial lives.
And as ever with HMRC — if they’re studying it this closely, enforcement won’t be far behind.
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