What is ChainTax?
ChainTax is a regulated tax collection service used by crypto exchanges, wallets, payment apps and DeFi platforms. If a platform you use has it switched on, you'll notice it the moment you withdraw a profit.
Instead of tracking every trade yourself and filing a return months later, the tax on that withdrawal is worked out there and then. The amount you owe is calculated and collected automatically, and the rest lands in your account straight away. You'll also get an email with the full details of the calculation as soon as it's done.
- → You don't need to sign up separately, it's built into the platform you already use
- → Every qualifying withdrawal is calculated in real time, using the same rules HMRC applies to crypto
- → The tax portion is collected automatically and passed on for you, so you keep the net amount
The calculator on this page is a live demo of that exact process. Try changing the numbers above to see how a withdrawal gets worked out.
How your tax is worked out
ChainTax looks at what you actually did, trading, staking or mining, and applies the right tax treatment before your withdrawal reaches your wallet. Every transaction is logged and calculated automatically, so you always have a clear record of what happened.
How different crypto activity is treated 💸
| What you did | Tax treatment | Collected at withdrawal |
|---|---|---|
| Trading profit | Capital gains | Yes |
| Staking rewards | Miscellaneous income | Yes |
| Mining income | Trading / miscellaneous income | Yes |
| Deposits & transfers to your own wallets | Not a taxable event | No |
Before anything is collected, we automatically take into account the parts of your withdrawal that shouldn't be taxed:
- → Your remaining tax-free allowance for the year
- → Any allowable costs tied to that specific transaction
- → Transfers between your own wallets on the same platform
Only the taxable part of your withdrawal is collected. Everything else, the calculation, the collection and passing it on, happens automatically in the background.
You can always see what was collected and why:
- → An email straight after every withdrawal, breaking down the profit, the tax collected, and the amount paid out to you
- → A running total of tax collected on your withdrawals so far this year
- → A downloadable statement you can keep for your own records
Why this beats filing it yourself
Handling crypto tax on your own means tracking every trade, working out what you owe, and filing a return by the deadline, all while hoping you haven't missed anything. ChainTax removes most of that.
- → Faster withdrawals. Your tax is settled the moment you cash out, so there's no waiting on a manual review
- → No surprise bill. You see exactly what's being collected before you confirm the withdrawal
- → One less return to file. Transactions already settled through ChainTax don't need to be worked out again later
- → A clear record. Every calculation and collection is logged, so you always have proof of what was paid and when
- → Rules kept up to date. When tax rates or allowances change, your calculations update automatically, you don't have to track it yourself
Is my money safe with ChainTax?
ChainTax operates as a registered tax collection intermediary. We calculate and pass on tax under HMRC's rules for crypto-asset reporting, so the platform you're using isn't guessing at your tax treatment, and neither are you.
What you get with every withdrawal 💸
| What happens | Handled by | Included |
|---|---|---|
| Tax calculation on your withdrawal | ChainTax | Yes |
| Collection of the amount you owe | ChainTax | Yes |
| Passing the amount on to HMRC | ChainTax | Yes |
| Your annual tax statement | ChainTax | Yes |
| A record you can download any time | ChainTax | Yes |
ChainTax currently supports UK-based users, with more countries in active development.
What happens, step by step:
- → You request a withdrawal of your crypto profit on a platform that uses ChainTax
- → We calculate the tax owed on that specific transaction
- → The tax portion is collected and queued to be passed on
- → The rest, your net amount, is paid out to you immediately
- → The collected amount is passed on to HMRC on the applicable schedule, with a receipt you can keep
Your money is never held longer than the settlement window, and you can request a copy of your records at any time.
How your tax gets collected automatically
Does this cost me anything?
ChainTax doesn't charge you a separate fee. The platform you're using pays for the service, and you only ever see the tax you actually owe on that withdrawal, calculated automatically and shown to you before you confirm it.
If you're not sure whether your platform uses ChainTax yet, check your withdrawal screen. If your tax is worked out automatically before you cash out, you're covered.
Got a question about a withdrawal?
If a tax calculation on your account looks off, or you just want it explained, our support team can walk you through exactly how a figure was worked out.