Disclosure: This article contains affiliate links.
Crypto tax is one of the most stressful parts of investing in digital assets. Every trade, every swap, every airdrop is a taxable event in the UK. Getting it wrong can lead to penalties — but getting it right is easier than you think with the right software.
I have used both Koinly and TokenTax to prepare my own crypto tax returns. Here is exactly how they compare.
Why You Need Crypto Tax Software
Trying to calculate crypto taxes manually is nearly impossible. A single year of active trading can involve hundreds of transactions across multiple exchanges — each needing to be matched, valued in GBP at the time of the transaction, and reported correctly under HMRC rules (pooling method).
Crypto tax software connects to your exchanges automatically, imports all your transactions, applies the correct tax rules for your country, and generates a report you can hand to your accountant or submit directly.
Koinly — Best Overall
Koinly is the most popular crypto tax software in the UK. It connects to over 700 exchanges and wallets via API or CSV import, automatically detects DeFi transactions, NFT trades and staking rewards, and generates HMRC-compliant tax reports.
What I love about Koinly:
- Free to use for up to 10,000 transactions (tracking only — report is paid)
- Supports all major UK exchanges: Coinbase, Kraken, Binance, Bybit
- Auto-detects DeFi, staking, mining income
- Generates an HMRC Capital Gains report in one click
- Supports 20+ countries
📋 Try Koinly Free
Connect all your exchanges for free. Only pay when you need to download your tax report.
TokenTax — Best for Complex Portfolios
TokenTax is the premium option — used by high-net-worth investors and crypto funds. It handles the most complex scenarios: DeFi protocols, Layer 2 networks, cross-chain bridging, and NFT trading. Their team of crypto accountants can also prepare your full tax return for you.
My Recommendation
For most UK crypto investors, Koinly is the right choice. Start for free, connect your exchanges, and only pay when tax season arrives. If you have a complex portfolio with DeFi or NFTs, consider TokenTax.
Whatever you do — do not ignore your crypto taxes. HMRC has been actively pursuing crypto investors since 2021.
