Can I Claim Accounting Fees for Crypto Tax as an Expense

How crypto is taxed in the UK

HMRC does not treat cryptocurrency as money or currency. Instead, it views it as a chargeable asset, similar to shares or property.

Most individuals are classed as investors, not traders. This means any profit you make when selling or exchanging crypto is subject to Capital Gains Tax (CGT), not Income Tax.

You are taxed on the difference between what you paid for the asset and what you sold it for, after deducting any allowable costs.

Allowable costs can include:

The original purchase price

Transaction fees when buying or selling

Certain professional fees directly related to the purchase or sale

Software or tools used to track and calculate gains

However, accounting fees for general tax advice or personal record-keeping do not always qualify.

When accounting fees can be claimed as an allowable expense

To be deductible, accounting fees must be directly related to the acquisition or disposal of the asset that generated the gain.

For example:

If you hire an accountant to calculate the gain or loss on a specific crypto sale, this portion of the cost may be allowable.

If the accountant’s work directly contributes to determining the taxable amount for a disposal, it can usually be included in the CGT calculation.

In essence, the fee must have a clear and direct link to the taxable transaction.

Example

You sell Bitcoin worth £50,000 and pay your accountant £300 specifically to calculate the gain from that sale. Because this fee directly relates to the disposal, HMRC would likely accept it as an allowable cost against your gain.

However, if you pay the same accountant £500 for general crypto portfolio advice or help completing your Self Assessment, that fee would not qualify.

When accounting fees cannot be claimed

Most investors will not be able to deduct accounting fees as a general expense because HMRC considers them personal tax administration costs rather than costs of acquiring or selling an asset.

This means that:

Fees for general crypto tax advice are not deductible.

Fees for completing or filing your Self Assessment return are not deductible.

Fees for bookkeeping, portfolio tracking, or compliance support are not deductible.

These are treated as personal expenses, similar to paying for advice on other investments like shares or property.

The difference between investors and traders

In very limited cases, HMRC may classify a person as a trader rather than an investor. This applies only when crypto activity is organised, frequent, and conducted with commercial intent similar to a business.

If you are classed as a trader:

Your profits are subject to Income Tax rather than Capital Gains Tax.

You can claim business expenses, including relevant accounting and advisory fees.

However, HMRC rarely considers individuals as crypto traders. Most people buying and selling crypto for personal investment fall under the CGT regime, not trading rules.

To qualify as a trader, you would need to show consistent and structured business-like behaviour, such as operating through a company, trading at scale, or providing crypto-related services commercially.

How HMRC views professional fees

HMRC’s guidance on allowable expenses for CGT is strict. It permits costs incurred wholly and exclusively for the purpose of acquiring or disposing of a chargeable asset.

This includes:

Legal fees for contracts or sale documentation

Valuation fees to determine market value

Costs directly related to executing the transaction

Accounting fees only qualify if they are necessary to carry out the sale and calculate the resulting gain or loss.

General advice, tax planning, or portfolio management fees fall outside these rules because they are not essential to a specific disposal.

Keeping records for crypto transactions

Even if you cannot claim accounting fees as an expense, you are still required to keep accurate records of your crypto transactions. HMRC expects you to maintain detailed documentation for each purchase, sale, and exchange.

Your records should include:

Dates of acquisition and disposal

Amounts spent and received

Transaction fees

Exchange or wallet details

The value of crypto in pounds at the time of each transaction

Good record-keeping helps your accountant prepare accurate tax reports and ensures you can justify all figures in case of an HMRC enquiry.

Can software or tax tools be deducted

If you purchase software specifically to calculate crypto gains and losses, the cost may qualify as an allowable expense because it directly supports the computation of taxable gains.

For instance, if you buy an annual subscription to a crypto tax calculator used solely to determine your CGT position, this is a legitimate deduction from your gains.

However, general portfolio tracking tools or investment apps that you use for non-tax purposes would not be deductible.

How to handle mixed-purpose accounting fees

If your accountant provides multiple services, such as preparing your full tax return and calculating crypto gains, you may be able to claim part of the fee.

Ask your accountant for a breakdown of their invoice showing how much of the total fee relates specifically to calculating crypto disposals. You can then claim that portion as an allowable cost.

For example:

£400 charged for preparing your tax return

£150 of that directly relates to crypto disposal calculations

You could include the £150 as a deductible cost in your CGT computation

Keeping itemised invoices makes it easier to justify any claim to HMRC.

What if your crypto is held within a business

If you operate a limited company or business that trades in crypto assets, the rules differ.

For company-held crypto:

Accounting fees are treated as a business expense if they relate to managing company assets.

The costs are deductible against business profits rather than personal Capital Gains Tax.

Businesses must still ensure that expenses are wholly and exclusively for the purpose of trade.

Final thoughts

For most individual investors, accounting fees for crypto tax are not claimable unless they relate directly to a specific disposal or calculation of gains. General tax advice, bookkeeping, and Self Assessment support are considered personal expenses.

If you operate as a business or your accountant’s work directly affects the calculation of a taxable gain, you may be able to claim part of the cost.

To stay compliant, keep detailed records, request itemised invoices, and seek professional advice before including any accounting fees as deductible expenses. While it might not always reduce your tax bill, good accounting support ensures your crypto reporting is accurate and avoids costly mistakes or penalties from HMRC.