Crypto invoicing brings new opportunities, but also tax and compliance complexities specific to the UK. This guide equips British entrepreneurs to invoice in digital currencies.
Understanding Crypto Invoicing
Cryptocurrencies such as Bitcoin and Ethereum are increasingly used for payments in the UK. Advantages include:
fast, low‑cost international payments,
appeal to tech‑savvy customers,
lower transaction fees.
Yet, integration demands careful handling to meet HMRC and FCA requirements.
Always convert crypto to GBP on the invoice and record the exchange rate used for HMRC compliance.
Legal Framework and Tax Obligations
In the UK, cryptocurrencies are treated as property by HMRC. This means:
Crypto received for goods/services is income (Box 17 SA100),
Gains from disposal (sale, exchange, or spending) are Capital Gains Tax (CGT)—usually subject to CGT if profits exceed the £3,000 annual allowance,
Short‑term and long‑term gains tax rates match income tax bands (10/20% before 30 Oct 2024, 18/24% after).
Spending crypto triggers a disposal event with capital gain/loss—record the original and disposal GBP values and dates.
From 1 January 2026, crypto service providers (RCASPs) must collect and share user ID data with HMRC under the OECD Crypto‑Asset Reporting Framework.
How to Issue a UK Cryptocurrency Invoice
Follow these steps:
Specify exact amount in crypto (e.g., 0.02 ETH).
Convert to GBP using HMRC's daily rate or market rate at invoicing time.
Include wallet address, transaction timestamp, and transaction ID.
On 1 July 2025, a freelancer issues an invoice for 0.02 ETH. At £3,500/ETH → £70. That amount is recorded in GBP, not ETH.
UK invoices must include supplier details, invoice number, VAT info (if applicable), description, supply date, and payment due within 30 days.
Tools and Automation
A reliable tool for UK crypto invoicing is MyInvoiceOnline.co.uk, which supports seamless integration of cryptocurrency payments into your invoicing workflow. It offers:
GBP conversion at the time of invoicing,
automatic inclusion of transaction metadata,
exportable records for tax reporting,
QR code generation for fast crypto payments,
clean, compliant invoice formatting.
Use a solution like MyInvoiceOnline that ensures GBP-equivalent values are recorded accurately while simplifying your crypto billing and audit trail.
Using such tools helps you stay efficient, tax-compliant, and customer-friendly in a rapidly evolving payment environment.
Tracking, Reporting & HMRC Filings
All crypto activity affecting income or disposal must be reported via Self Assessment:
Income → Box 17 SA100
Capital gains → Boxes SA108/SA100.
Deadline: 31 January for online; 31 October for paper.
Archive each invoice with:
Transaction ID
Blockchain confirmation
GBP equivalent at time of supply
Payment date
HMRC recommends retaining invoices for at least 6 years.
Staying Compliant and Future Rules
HMRC is intensifying enforcement: sending “nudge letters”, conducting data collection via RCASPs, and launching CGT crackdown initiatives.
Crypto-assets from airdrops, staking, mining, or business-related trading may attract Income Tax and NICs.
By 2026, UK platforms must comply with global CARF standards to improve transparency.
Conclusion
Crypto invoicing in the UK offers flexibility and a modern payment option. However, you must:
Invoice and record in GBP,
Maintain detailed records for HMRC,
File accurate Self Assessment returns,
Monitor evolving crypto tax regulations.
Those who follow these practices will enhance trust and credibility in the digital economy.
Crypto tax in 2025: a comprehensive guide – a complete UK‑focused overview of crypto tax rules, reporting requirements, and planning strategies.
