Tax & Regulation
What records do I need to keep for HMRC?
Keep daily mining output, electricity bills, equipment purchases, pool payouts, disposals, and wallet addresses. Retain records 5+ years.
HMRC requires detailed records of all cryptocurrency transactions. For mining, this includes:
| Record | What to Log | Why It Matters |
|---|---|---|
| Daily mining output | Coins received, £ value at receipt | Income tax calculation |
| Electricity bills | Monthly kWh used, cost | Expense deduction |
| Equipment purchases | Date, cost, supplier, specs | Capital allowances claim |
| Pool payouts | Payout dates, amounts, tx hashes | Proof of mining activity |
| Coin disposals | Date, amount, £ proceeds, exchange used | CGT calculation |
| Wallet addresses | All wallets used for mining | Asset tracking |
| Coin switches | When and why you changed coins | Trade status evidence |
How long to keep records: HMRC requires records for at least 5 years after the 31 January deadline for the relevant tax year. For a 10-year mining operation, you may need records going back 15 years.
💡 Recommended tools: Use crypto tax software (Koinly, CoinTracker, Recap) that connects to your wallets and exchanges. These automatically track receipt values, calculate pooled cost bases, and generate HMRC-compatible tax reports. Cost: £30–100/year — and the subscription itself is a deductible expense.