Yes. Despite crypto transactions being in many cases anonymous, if you make money from trading, mining or exchanging crypto, you must pay tax.

There is no separate tax for crypto in the UK. In most cases, cryptocurrency is taxed in the same way as other investment assets – for example a gold. You pay tax on the difference between the price you sold the asset for and the price you bought the asset for. This tax is called a Capital Gains Tax. This rule applies to the majority of individual traders in the UK. In rare circumstances, HMRC might consider your crypto activity as regular financial trading, rather than investment, and tax it with Income Tax. That would apply to a person buying and selling a large amount of crypto on a daily basis for short term profits, but it is unlikely that any individual trader would meet the criteria.
Sometimes crypto might be taxed with Income Tax as other earnings, for example when you are paid with crypto for your work.

No. There is a tax-free allowance for Capital Gain Tax, which is £6000. If your profits are less than £6000, there is no tax to pay.

The financial year in the UK runs from the 6th of April to the 5th of April the next year. Profits made from crypto during this time, must be reported until 31st of January the following year. For example, for the year from 6th of April 2022 to the 5th of April 2023, you need to report your taxes to HMRC by the 31st of January 2024. You’ll declare all your crypto taxes in your Self Assessment Tax Return.

You report your crypto taxes in Self Assessment Tax Return. If you are self-employed or a company director, you probably fill this form every year already. If not, you must register for Self-Assessment and start filling it.

No, it is not obligatory to fill SA Tax Return if you made a loss or made a profit lower than Capital Gain Tax allowance, but we advise you to do so. Once you register capital losses with HMRC, you can offset them against any capital gains made from other investments in the same year or against profits made in the future. It could potentially reduce your tax in the future or even zero it. HMRC allows you to carry forward registered losses to offset future gains, but they must be registered with HMRC. You can carry forward registered capital losses with no limits, until they’re fully used. That is why, even if you’re not required to submit a self-assessment, you should still do this to make sure they’re registered with HMRC.

You can report losses to HMRC within 4 years. After the four-year period, you’ll no longer be able to register your losses and use them to offset future gains.