How to Protect Your Money
29 Sept. 2025 – written by Steffen Kemmerzehl – Friendly Assist Accountancy – Blog
Cryptocurrency and Digital Assets: Reporting Has Changed
If you hold or trade crypto, keeping good records is becoming increasingly important.
The UK’s Cryptoasset Reporting Framework came into effect from January 2026. UK cryptoasset service providers within the rules now have to collect information about users and transactions, with the first reports covering 2026 due to HMRC by 31 May 2027.
That does not create a new tax on crypto, but it does mean HMRC will have access to more information about activity that may have tax consequences.
If you have bought and sold crypto, received staking rewards, made frequent transactions across different platforms or simply have several years of records that you have never really looked at from a tax perspective, it is worth checking where you stand.
And if something should have been reported previously, dealing with it now is usually a better starting point than waiting for HMRC to ask about it.s are now essential.
IR35: Tighter Rules and More Audits
IR35 enforcement is being stepped up, particularly in sectors such as technology, logistics, and the creative industries where freelance work is common. A new version of the Check Employment Status for Tax (CEST) tool is due to launch, offering improved reliability for assessing employment status.
Agencies and intermediaries will also bear greater responsibility for ensuring contractors are correctly classified. This shift means that freelancers using Personal Service Companies (PSCs) and the businesses that hire them must be more proactive about compliance.
How to Prepare
- Review Contracts: Regularly review and update contracts to ensure they accurately reflect working arrangements.
- Use Updated Templates: Avoid relying on outdated contract templates that may no longer meet HMRC standards.
- Consider Insurance: Tax investigation insurance can provide valuable protection in the event of an HMRC audit.
HMRC’s Expanded Powers: Faster and Broader Investigations
HMRC now has more tools to identify and investigate tax discrepancies. Several key changes make enforcement more efficient and more likely.
- Points-Based Penalty System: Missing a deadline will initially result in a warning, but repeated delays will trigger escalating penalties even if the tax return itself is accurate.
- Financial Institution Notices (FIN): HMRC can now request bank account information without a court order or notifying the taxpayer.
- Platform Reporting: Gig economy and e-commerce platforms such as eBay, Vinted, Airbnb, Etsy, and Deliveroo are now required to report users’ income directly to HMRC.
What You Should Do
- Declare All Income: If you earn more than £1,000 per year from self-employment, side hustles, or digital income streams, you must report it.
- Treat All Earnings Equally: Record and track gig or freelance income with the same diligence as salary or dividend income.
- Schedule Annual Reviews: Have an accountant review all income sources annually to ensure nothing is missed.
Even small amounts of undeclared income can now be easily detected. Staying compliant from the start is far less costly than dealing with an investigation later.
Property and Business Premises: Check What Has Actually Changed
For property owners and businesses with premises, 2026 has already brought changes worth checking rather than planning around predictions.
New business rateable values took effect in England and Wales from 1 April 2026. If you occupy business premises, it is worth checking the current rateable value, whether the information held about the property is correct and whether any available relief applies.
Landlords and property investors should also review tax decisions based on their own circumstances rather than headlines about the property market. Buying, selling, refinancing or moving property into a company can all have different tax consequences.
If you are considering a significant property decision, looking at the numbers before completing the transaction can be considerably easier than trying to change the tax outcome afterwards.
Final Thoughts: Prepare Now, Benefit Later
The pace of tax reform is accelerating, and 2026 will be a defining year for UK taxpayers. Those who plan ahead will be best placed to minimise risks and take advantage of new opportunities.
At Friendly Assist Accountancy, we specialise in helping individuals and businesses stay compliant, reduce tax exposure, and make confident financial decisions. Whether you need support with crypto accounting, IR35 status reviews, or property tax planning, we are here to help.
If you’d like to explore this more, please get in touch
Steffen Kemmerzehl
I am a qualified AAT accountant in Newcastle upon Tyne.
Please get in touch if you’re interested in arranging an appointment.
Useful sources and further reading
HM Revenue & Customs, Cryptoasset Reporting Framework
https://www.gov.uk/government/collections/reporting-to-hmrc-if-you-provide-cryptoasset-services-in-the-uk
GOV.UK, Off-payroll working (IR35) guidance
https://www.gov.uk/government/collections/off-payroll-working-ir35-detailed-information
Valuation Office Agency, Business Rates Revaluation 2026
https://www.gov.uk/guidance/help-with-the-2026-business-rates-revaluation
Information checked September 2026. Tax rules and HMRC guidance can change, and individual circumstances should always be considered.