DAC8 goes live: crypto providers report your balance to the Tax Administration from 2026

What is changing in crypto reporting to HMRC?

Under new UK rules, based on the international Cryptoasset Reporting Framework, UK-based crypto service providers must collect information about their users and their transactions and report it to HMRC. According to GOV.UK, the first reports are due between 1 January and 31 May 2027, covering 2026.

In the EU, a similar scheme called DAC8 applies. For you as a taxpayer, nothing changes in the tax itself. Crypto gains already had to be reported. The difference is that HMRC can now set your return alongside the data your provider sends. How crypto is taxed is explained on GOV.UK.

When are the key dates for crypto reporting to HMRC?

There are three dates worth knowing:

• 1 January 2026: providers start collecting data.
• 31 May 2027: the deadline for UK providers’ first reports to HMRC, covering 2026 (GOV.UK).
• 30 September 2027: the deadline for the first exchange of DAC8 data between EU countries, covering 2026 (European Commission).

Does HMRC also see crypto held at a foreign exchange?

Increasingly, yes. The framework is international, and countries that sign up exchange data with each other. What you hold yourself in your own wallet, without a provider in between, is not in a provider’s report. It still belongs in your tax return.

Not sure whether your records add up? Let Paucitas take a look with you. You can ring any time, 24/7, on +31 20 244 5774.

What if your return differs from what the exchange reports?

Then HMRC may ask questions, even if there is an innocent explanation. That does not mean you did anything wrong. Common causes:

• transfers between your own wallets that look like a sale on a statement;
• accounts at several exchanges, one of which was forgotten;
• a different valuation date or price than in your return;
• crypto you had for longer and bought elsewhere.

If you have recorded how your assets were built up and the origin of your assets, you can answer such a question calmly. Which questions about crypto come up most is covered in common verification questions about crypto.

Which firm prepares a report on your crypto assets?

Paucitas establishes independently which crypto you held, on which date, and where it came from. Paucitas does all the tracing itself, without tracing tools. We look into everything: the transactions, the route of the money, the platforms, the documents and the timeline. Paucitas also reads through your emails, messages and other communication with platforms, so the full picture emerges of where the money came from and where it went, step by step. You receive a report anyone can follow and understand step by step. You decide who you give it to: your accountant, HMRC or your bank.

That is useful for accountants and advisers too. Clients increasingly need verifiable evidence that matches what exchanges already record under their KYC and AML duties. Also read evidencing crypto origin for accountants.

• No tax advice: Paucitas provides the evidence; you or your adviser handle the tax return.
• Cost: every investigation is tailored. You receive a tailored quote in advance that we go through together, with no surprises.
• Turnaround: from the same day to around two weeks.

Further reading: which crypto documents to keep for the tax authority and frequently asked questions on crypto asset verification.

Want to be prepared before the first reports arrive? Get in touch for a free intake, or ring +31 20 244 5774. Via the form you will hear from us within 1 to 3 hours.

Sources: GOV.UK, check if you will need to report cryptoasset data to HMRC; GOV.UK, tax when you sell cryptoassets; European Commission, DAC8.