Let’s clear something up for any UK-based crypto founders, miners, and devs reading this:
Setting up your company on Companies House is NOT the finish line. It’s barely the starting block.
We’ve seen this scenario too many times:
Someone launches a new crypto business, trading, staking, building dApps, you name it. They register a shiny new Ltd and think:
“All done. We’re compliant now.”
But behind the scenes, nothing is set up properly:
- No Corporation Tax registration
- No PAYE if they’re paying themselves
- No VAT assessment
- No crypto-specific bookkeeping
- No wallet activity tracking
That’s a recipe for trouble. Especially with HMRC now paying close attention to Web3 entities.
Here’s what most crypto businesses miss after incorporation:
Corporation Tax registration isn’t automatic
You’ve got 3 months to tell HMRC your company is active (e.g. trading, mining, staking). If you miss that deadline, expect penalties.
Staking rewards, airdrops, and DAO tokens = taxable income
It doesn't matter if the asset hasn't been sold yet—some events trigger tax on receipt.
VAT can apply even if you’re not “selling a product”
Running a decentralised app? Selling access or token services? You may fall within VAT scope, even if you’re paid in crypto.
PAYE registration if you're drawing salary
Paying yourself? You need a payroll scheme. HMRC expects real-time reporting, even for a director salary.
Crypto transactions ≠ traditional bookkeeping
You can’t just plug Binance or Metamask into QuickBooks and hope it works. You need custom wallet tracking and categorisation systems.
At Crypto Accountants, we help UK crypto companies:
→ Register correctly with HMRC
→ Distinguish trading vs investing vs development (they’re taxed differently)
→ Build crypto-first bookkeeping setups
→ Track on-chain wallet activity across multiple chains
→ Prepare for VAT, PAYE, and income tax implications
→ Communicate with HMRC, so you don’t have to
You don’t want to realise at year-end that airdrops were taxable, or that staking rewards triggered income tax back in April.
In crypto, the rules are complex and fast-evolving. The longer you wait to get your structure in order, the harder (and costlier) it gets.
If you're in the UK and your Ltd is registered—or you're planning to launch soon, make sure you're building the right financial foundation. Otherwise, HMRC might give you a painful reality check when it’s too late to fix things cheaply.
We’re here to help make sure your entity isn’t just a name on Companies House, but a fully compliant, tax-optimised crypto business.
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www.cryptoaccountants.live