I’ve got to tell you something because I don’t think most people in crypto have clocked how serious this is. From January 2026, HMRC are flipping the switch on a new system called CARF. What that means in plain English is this: every single trade you’ve ever done, every time you’ve moved coins, even transfers to your cold wallet – it’s all going to flow automatically into their system every single day.
No more guessing, no more hiding. Your tax bill is basically sitting there in their database before you even hit “submit” on your return.
I know what you might be thinking: “If they’ve already got my data, do I still need to file?” The answer is yeah, you do. Because while they can see the numbers, they can’t see the context. They don’t know about your fees, your allowances, or if you’ve shifted some coins to your partner to use both your capital gains thresholds. That’s still on you.
And this isn’t just a UK thing either. The US, Australia, Europe – over forty countries are rolling this out. So if you ever thought, “I’ll just move abroad and escape it,” think carefully. The rules follow you more than you think.
Here’s the other thing I need you to hear: if you know you’re behind on taxes, don’t bury it. If you go to HMRC first, penalties are way smaller than if they come to you. Waiting it out is a bad strategy now that the data feed is automatic.
So the move here is simple. Start keeping clean records. Use one of the decent tax tools like Coinly to line everything up. Learn what allowances apply to you, and if you’re married, use both. And if you’re planning to leave the UK, make sure it’s a real five-year move or more, otherwise the taxman still has you.
I’m not telling you this to scare you – I just don’t want you caught flat-footed when 2026 lands. Most people will ignore it until it’s too late. Don’t be one of them.
Catch you soon,
Lewis
