What Are the Best Tools for Calculating Crypto Tax in the UK

At Towerstone, we provide specialist crypto accountancy services for UK investors and businesses. We have written this article to explain common crypto tax tools, helping you understand the tax and reporting position.

In my experience most people only look for a crypto tax tool when tax season is already looming, wallets are spread across three exchanges, a cold wallet, two DeFi apps, plus a handful of NFTs, and they suddenly realise a spreadsheet is not going to cut it. In my opinion that is completely normal, crypto moves fast, and most platforms are built for trading not for tidy UK tax reporting.

The good news is that UK crypto tax software has improved a lot. The less good news is that no tool is magic. Every tool relies on the same fundamentals, importing the right data, classifying transactions correctly, and applying HMRC rules such as share pooling and the bed and breakfast rules. If you choose a tool that fits your activity, and you use it properly, you can get to a clean HMRC ready report with far less stress than doing it manually.

In this guide I will walk you through the best tools for calculating crypto tax in the UK, what each is good at, where they can struggle, and how I would choose between them depending on your situation. I will also cover a practical workflow that I have seen work well, because in my opinion process matters as much as software.

I am writing this from the perspective of a UK accountant who wants you to get compliant, reduce errors, and keep records in a way that stands up if HMRC ever asks questions. HMRC is increasingly focused on crypto reporting, and there are now formal data collection and reporting frameworks in play, so getting this right is only becoming more important. 

A quick reality check on what a “crypto tax tool” actually does

Before we talk about brands, I want to be clear about what these tools do, because people often expect them to do something they cannot do.

A crypto tax tool generally does five things:

• Imports transaction data from exchanges, wallets, and chains via API, CSV, or wallet address

• Labels each transaction type, for example buy, sell, swap, staking reward, airdrop, liquidity add, liquidity remove, NFT mint, NFT sale

• Converts values into GBP at the correct time and date

• Applies UK rules, especially share pooling, and the bed and breakfast matching rules

• Outputs a report you can use to complete Self Assessment, typically capital gains figures for SA108 and income figures for SA100, plus supporting transaction level detail

A tool cannot reliably do these parts without you:

• Decide whether something was genuinely a gift, a transfer, a disposal, or income

• Fill gaps where data is missing, especially from DeFi, bridges, and older wallets

• Fix cost basis problems caused by missing deposits, missing withdrawals, or exchange data that is incomplete

• Explain unusual situations, like hacks, rug pulls, lost keys, insolvencies, or tokens that have become worthless

From experience the best results come when you treat the software like a calculator with a very clever import engine, not like a tax adviser.

What HMRC expects, and why tooling matters more now

HMRC’s position is that cryptoasset activity can create taxable gains or taxable income, and you need records that support what you report. There is also a specific HMRC route for voluntary disclosure if you realise you have underreported in prior years. 

More recently, HMRC has set out information requirements connected to cryptoasset service providers collecting user details and reporting activity, with international reporting frameworks coming into force. In plain terms, HMRC’s ability to link activity to taxpayers is improving quickly. 

In my opinion this changes the mindset. A crypto tax tool is not just about convenience, it is about creating an audit trail you can stand behind.

My criteria for “best” crypto tax tools for the UK

When I assess tools for UK users, I look at seven areas. If a tool is weak in two or three of these, it can still be usable, but you need to know what you are signing up for.

1. UK specific tax logic
   Share pooling and bed and breakfast matching are not optional for UK calculations, so the tool must support them properly. Recap explicitly positions itself around HMRC compliant share pooling and bed and breakfast rules which is a strong UK signal. 

2. DeFi and NFT coverage
   If you have even light DeFi activity, your tool needs to handle staking, lending, liquidity pools, wrapped tokens, and chain activity sensibly, otherwise you spend more time cleaning than saving.

3. Imports and integrations
   The difference between a smooth year and a nightmare year is often whether your tool can pull data from your main exchanges and wallets cleanly. Koinly claims 900 plus integrations. 

4. Reconciliation workflow
   You want a tool that makes errors obvious, highlights missing cost basis, and lets you correct classifications without fighting the interface.

5. HMRC ready outputs
   Some tools are better at producing UK specific outputs that map cleanly into Self Assessment, including clear capital gains summaries and income summaries.

6. Support and documentation
   In my experience this matters more than people think. When something breaks, you need answers fast.

7. Price structure that matches your volume
   Some tools are great at low volumes, then become expensive at higher transaction counts, so you want to pick based on how active you actually are.

The best UK crypto tax tools, and who they suit

I am going to cover the main players I see UK clients using most often, and I will be frank about where each tends to shine.

Recap, best UK first option for HMRC style calculations

If you are UK based and you want a tool built with HMRC rules front and centre, Recap is usually the first place I look. Recap positions itself as UK crypto tax software, and highlights HMRC compliant calculations including share pooling and the bed and breakfast rules, and it talks directly about generating what you need for Self Assessment forms. 

Where Recap tends to be strong, in my experience:

• UK framing and language, which reduces confusion

• Outputs designed to support Self Assessment entries, and accountant handover

• A focus on record keeping and compliance rather than just portfolio tracking 

Where you still need to be careful:

• DeFi can still require manual review, especially with bridges and complex LP positions

• Any missing exchange history will still cause cost basis issues, like any other tool

Who I think Recap suits best:

• UK investors who want an HMRC aligned report with minimal fuss

• People who plan to share the output with their accountant

• Anyone who is primarily spot trading, staking, and light DeFi

Koinly, best all rounder when you have lots of integrations, DeFi, and NFTs

Koinly is widely used in the UK, and it positions itself heavily around crypto tax reports including HMRC reporting, with broad integrations. 

Where Koinly tends to be strong:

• Breadth of integrations, especially when you have many exchanges and wallets 

• DeFi and NFT support, which can save time if you are active across chains

• A mature product with lots of community usage, which often means common issues are well documented

Where you need to be careful:

• Like all tools, it will misclassify some DeFi activity unless you review it

• If you have lots of internal transfers across wallets, you must ensure they are linked as transfers not disposals, otherwise gains can be overstated

Who I think Koinly suits best:

• Users with multiple exchanges, multiple wallets, and meaningful DeFi or NFT activity

• People who want broad coverage first, then fine tune

CoinTracker, best for portfolio tracking plus tax support, especially if you want ongoing monitoring

CoinTracker is well known for portfolio tracking and it also produces UK tax guidance content. It positions itself around helping UK users become tax compliant, and it talks about things like tax loss harvesting as a feature. 

Where CoinTracker tends to be strong:

• A strong portfolio view, which some people prefer year round

• Helpful content around filing in the UK, which can support your understanding 

Where you need to be careful:

• If you are heavily DeFi focused, you will still want to confirm coverage for your specific protocols

• The more complex your activity, the more you should validate the outputs against your own records

Who it suits best:

• People who want ongoing portfolio tracking and tax estimation alongside reporting

• Investors with moderate complexity who value a clean interface

CoinLedger, good for UK users who want simple reporting and broad support

CoinLedger presents a UK specific landing page, and positions itself as crypto tax software for UK users, including DeFi and NFTs, with a workflow of import then export reports for filing or for an accountant. 

Where CoinLedger can be a good fit:

• Straightforward onboarding, especially if you prefer a guided flow

• Broad positioning across crypto, DeFi, and NFTs, with reporting outputs suitable for sharing 

Where you should be cautious:

• As with other tools, DeFi transaction labelling often needs manual review

• Always confirm the UK cost basis method is applied in line with HMRC expectations for your activity

Who it suits best:

• UK investors who want a simple tool and are not running very complex DeFi strategies

• People who want to generate reports quickly then hand to an accountant

CryptoTaxCalculator, now branded as Summ in the UK, strong for DeFi heavy users who want a structured reporting approach

CryptoTaxCalculator content highlights reporting to HMRC and it now references Summ as the platform name in the UK. 

Where it can be strong:

• DeFi support focus, depending on the protocols you use

• A reporting led approach for people who want outputs not just a portfolio view

Where you need to be careful:

• DeFi is always evolving, so confirm it supports the chains and protocols you actually use

• Always check token mapping and LP token handling, this is where cost basis errors often sit

Who it suits best:

• Users with significant DeFi activity who are prepared to do proper reconciliation

Blockpit, good for UK compliance focused reporting, especially if you want strong educational guidance alongside the tool

Blockpit has detailed UK tax guidance content including crypto tax forms and UK tax topics, and it positions itself around generating ready to file reports. 

Where it tends to be strong:

• Strong educational material for UK users, which is useful if you want to understand as well as report 

• Compliance framing and structured reporting

Where you need to be careful:

• Confirm integration coverage for your exchanges and chains

• Validate DeFi classifications, like any platform

Who it suits best:

• People who value guidance and structure, and want a tool that encourages correct reporting habits

TokenTax, best if you want software plus higher touch support, but often more US oriented in outputs

TokenTax positions itself as both software and a full service crypto tax accounting firm. 

Where TokenTax can shine:

• Higher touch support options, which can be useful if your situation is messy

• Helpful for complex reconciliations if you are willing to pay for it 

Where you need to be careful as a UK user:

• Some outputs are naturally US focused, so you need to ensure you are getting UK appropriate reporting

• Always confirm UK pooling and matching logic is applied as required

Who it suits best:

• Higher net worth users, or very complex activity where you want support, and you are prepared for higher costs

ZenLedger, usable for UK users, but I treat it as a confirm fit tool rather than a default

ZenLedger offers UK tax guidance content and supports many exchanges and tokens. 

Where it can work well:

• Broad exchange support and portfolio plus reporting approach 

Where you should be cautious:

• Always confirm that the UK specific reporting, and UK cost basis logic, suits your needs

• Validate outputs carefully if you have lots of DeFi, NFTs, or complex cross chain movements

Who it suits best:

• Users who already like the platform and have moderate complexity, and who will sanity check the results

A practical way to choose the right tool, based on your situation

In my opinion the best tool is the one that matches your activity, not the one with the loudest marketing.

Here is how I would choose in practice.

If you are mainly on a few big exchanges, with spot trades and some staking

Start with Recap or Koinly.

• Recap if you want UK first reporting and a clean Self Assessment orientation 

• Koinly if you have lots of integrations across exchanges and wallets 

If you are DeFi heavy, multiple chains, liquidity pools, yield farming, bridges

Start with Koinly or Summ, and plan time for manual review.

• Koinly for integration breadth and coverage 

• Summ if you prefer a reporting and DeFi workflow, and it supports your specific protocols 

If you are NFT heavy, lots of mints, marketplaces, swaps

Koinly and CoinLedger are common starting points, then you reconcile carefully.

• Koinly for broad DeFi and NFT support plus integrations 

• CoinLedger if you want a guided flow and quick export reporting 

If you want year round portfolio tracking, plus tax reporting

CoinTracker is often the preference, because it is built around that ongoing view. 

If your data is messy, missing years, or you have complex edge cases

Consider a tool plus professional support, and TokenTax is one of the platforms that explicitly blends software with support services. 

The workflow I recommend, and why it prevents most UK crypto tax mistakes

From experience, most people do not fail because of tax rules, they fail because their data is incomplete or mislabelled. This workflow reduces that risk.

Step 1, list every source of transactions

Do not start importing until you have a full list, otherwise you end up chasing your tail.

Include:

• Every exchange account, even ones you no longer use

• Every wallet address, including old hot wallets

• Every chain you used directly

• DeFi apps, bridges, and staking platforms

• NFT marketplaces and mint sites if relevant

Step 2, choose one tool, import everything, and do not pay yet

Most platforms let you preview to some extent. Use this stage to see if it can actually pull your history cleanly.

Look for red flags:

• Large negative balances

• “Missing purchase history” warnings

• Huge gains that do not pass the common sense test

• Transfers treated as disposals

Step 3, reconcile transfers first

In my opinion this is the highest impact fix.

Transfers should be transfers, not trades, not income.

If you moved 1 ETH from Exchange A to Wallet B, you want it linked. If it is not linked, your tool may think you sold on one side and magically acquired on the other side, which distorts gains.

Step 4, review income labels carefully

Staking rewards, airdrops, referral bonuses, and liquidity rewards are often treated as income. Whether that is correct depends on facts and on HMRC guidance principles.

What I do in practice is:

• Check that rewards are not mislabelled as deposits

• Ensure the GBP value at receipt looks reasonable

• Make sure the timing is consistent, especially if rewards accrue then claim

Step 5, review DeFi and LP events manually

Liquidity adds and removals are where UK reports can go off the rails.

You want to confirm:

• LP tokens are recognised and valued sensibly

• Wrapped tokens, and bridge tokens, are mapped correctly

• Fees are captured, because fees are often allowable costs in gains calculations

Step 6, sanity check the output against reality

Before you rely on the number, pressure test it.

• Does the gain align with your overall change in portfolio value, allowing for deposits and withdrawals

• Do you have a year where the tool shows a huge gain but you never withdrew anything, and your portfolio ended lower, that usually signals missing cost basis or mislabelled transfers

• Do you have a year where the tool shows a huge loss but you were actually profitable, that can signal duplicate imports or incorrect pricing

Step 7, generate the HMRC oriented report, and keep the full audit trail

Keep:

• The summary report

• The transaction level report

• The import files or API connections used

• Notes on any manual changes you made and why

HMRC’s focus on record keeping and disclosure is clear, so having this pack is sensible risk management. 

A word on “free calculators” and spreadsheets

There are free calculators that estimate tax, and they can be useful for quick sense checks, but in my opinion they do not replace a proper transaction level tool.

HMRC expects you to be able to show your workings, so if you have more than a handful of trades, you usually need software that handles pooling, matching, and transaction classification at scale.

The questions I would ask before you pick a tool today

If you answer these honestly, your choice becomes much easier.

• How many transactions do you realistically have, including DeFi and NFT events

• How many exchanges and wallets did you use

• Did you bridge assets between chains

• Did you add and remove liquidity

• Did you stake, lend, farm, or receive rewards

• Do you need something that an accountant can work with easily

• Do you want year round portfolio tracking, or just year end tax reports

My “best overall” view, as of now

In my opinion there is no single best tool for everyone, but there are clear leaders depending on what you value.

• Best UK first choice for HMRC style reporting: Recap 

• Best all rounder when you have lots of integrations and activity: Koinly 

• Best for year round tracking plus tax focus: CoinTracker 

• Strong contenders depending on your workflow and complexity: CoinLedger, Summ, Blockpit 

If you tell me, in one message, which exchanges you used, which chains you touched, and whether you did DeFi or NFTs, I can recommend the best fit tool and the cleanest setup approach, based on your exact activity.

Important note

Nothing here is personal tax advice, because your facts matter, and HMRC treatment can differ depending on whether activity is investment, trading, or miscellaneous income in nature. If your numbers are large, or your activity is complex, I would get accountant support alongside the software, because the cost of getting it wrong is usually higher than the fee.

If you would like to explore related investing and crypto guidance, you may find What happens if I have not declared my crypto income and What happens if I was scammed or hacked: Can I claim a tax loss useful. For broader investing context, visit our stocks and shares guidance hub.