Calculate Your Crypto Mining Tax
Frequently Asked Questions
Is cryptocurrency mining income taxed in the UK?
Yes. HMRC treats crypto mining rewards as taxable income at the sterling value on the date of receipt. If your mining activity is occasional or a hobby, it is classed as miscellaneous income. If it amounts to a trade, it is trading income subject to income tax and National Insurance.
What mining costs can I deduct from my tax?
You can deduct allowable expenses directly related to mining: electricity costs, pool fees, hardware depreciation (capital allowances for traders), and maintenance costs. You cannot deduct the cost of the equipment upfront unless you are operating as a trade and can claim Annual Investment Allowance.
Do I pay capital gains tax when I sell mined crypto?
Yes. When you dispose of mined cryptocurrency, CGT applies on the gain from the value at which it was brought into your income (the acquisition cost for CGT purposes) to the disposal value. The annual CGT exempt amount (£3,000 for 2026-27) can be deducted first.
What is the difference between hobby mining and trading?
HMRC considers factors such as the frequency and scale of activity, use of commercial equipment, and profit motive. Occasional home mining is typically miscellaneous income; operating multiple rigs professionally or commercially is more likely to be a trade. Traders can claim broader deductions but also pay Class 4 NICs.
Do I need to declare crypto mining income if it is small?
If your total miscellaneous income from crypto mining exceeds £1,000 in a tax year, you must declare it via Self Assessment. Below £1,000 the trading allowance may cover it, but you must still report if asked by HMRC. Always keep records of mining rewards received.