# Self-employed and limited company crypto in the UK

If you trade crypto commercially — market making, mining at scale, NFT business — profits may be trading income (sole trader) or Corporation Tax (Ltd). VAT generally does not apply to exchange token transactions. Register for Self Assessment or Corporation Tax returns. Separate business records are mandatory.

## Key facts
- Badges of trade determine classification.
- Ltd company profits → Corporation Tax.
- Allowable expenses reduce taxable profit.
- Payroll in crypto has PAYE obligations.
- Separate business bank and records strongly advised.

## Sole trader vs personal investing

Occasional investing is CGT. Regular profit-seeking activity with business organisation may be trading — Income Tax and Class 2/4 NI.
## Limited companies

Company holds crypto on balance sheet. Disposals create Corporation Tax charges. Director withdrawals have further tax rules.
## VAT

HMRC generally treats exchange tokens as outside VAT scope for most transactions — but fees for services may differ. Take professional advice for mixed activities.

## FAQs
### Does a crypto side hustle need registration?

If trading income exceeds £1,000 you may need to register — see HMRC trading allowance guidance.

## Sources

- [HMRC — Cryptoassets Manual](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual)
- [HMRC — Business Income Manual](https://www.gov.uk/hmrc-internal-manuals/business-income-manual)

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— Digital Assets UK (https://digital-assets.co.uk/tax/crypto-self-employed-business/), reviewed 2026-06-23. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual