HM Revenue & Customs has updated its official guidance under the Cryptoasset Reporting Framework, setting out explicit technical rules and deadlines for reporting cryptoasset user and transaction data in the UK.
Reporting Deadlines and Target Audience
According to HMRC guidance, businesses providing cryptoasset services in the UK must collect details on all users, but are only required to report on users who are tax resident in the UK or in another country signed up to CARF rules. The first official report must be submitted by 31 May 2027, covering transactions from 1 January 2026 to 31 December 2026. If a service provider has no reportable information in a given year, no report submission is required.
XML File Formatting Requirements
Submissions must be prepared in XML file format adhering to the XML schema provided on the Organisation for Economic Co-operation and Development (OECD) website alongside HMRC file requirements and error message rules. Individual XML files can be up to 250MB in size, and data can be split across multiple files if necessary. Compressed zip files are not permitted. Data must be uploaded to an online portal; HMRC notes that guidance will be updated when the online submission service goes live.
Penalties for Non-Compliance
Firms that fail to follow the rules face potential penalties of up to £300 per user. Penalties may apply for failure to report, submitting late reports, or providing reports that are inaccurate, incomplete, or unverified, as detailed in the HMRC technical manual.
For more details on regulatory updates affecting UK crypto investors, see our recent report on FCA Crypto Regulatory Timelines.
Main picture: Photo by Anne Nygård on Unsplash
Be First to Comment