A client came to us recently with a simple question: "I earned about £1,300 in staking rewards this year. Do I need to register as self-employed?"
No. Staking rewards for most people aren't a business, and they don't go on the self-employment pages. They're miscellaneous income, the £1,000 allowance can cut the bill, and they go in a different box that many people miss. This guide explains how staking is taxed, with a step-by-step walkthrough of exactly what to enter. For the bigger picture, see our complete crypto tax UK guide.
Quick answer
- Staking rewards = miscellaneous income (not self-employment), taxed on their £ value when received.
- The £1,000 trading and miscellaneous income allowance applies. £1,000 or less is tax-free and needn't be reported.
- Above £1,000: deduct the allowance and report the net figure in box 17, "Other UK income", page TR 3 of the SA100.
- Example: £1,300 staking − £1,000 allowance = £300 in box 17. Leave the expenses box (box 18) empty.
- Selling, swapping or spending crypto later is a separate capital gains event.
Two taxes: income and capital gains
UK crypto tax has two parts:
| Event | Tax | When |
|---|---|---|
| Receiving staking rewards, mining rewards, payment in crypto, some airdrops | Income tax (usually miscellaneous income) | When you receive the tokens, at their £ value |
| Disposing of crypto: selling for £, swapping for another token, spending it, gifting it | Capital gains tax | When you dispose of it |
Staking rewards are hit by both: income tax when you receive them, and CGT on any growth when you later sell or swap them.
How staking income is taxed
Miscellaneous income, not a trade
HMRC's guidance says staking rewards are taxable as miscellaneous income unless the activity amounts to a trade. For individuals, that's only in exceptional circumstances, such as a large, organised, commercial validator operation. If you stake through an exchange or a wallet, it's miscellaneous income.
Why it matters:
- ❌ You don't register as self-employed and don't use the self-employment pages (SA103).
- ❌ No National Insurance on miscellaneous income.
- ✅ It's taxed at your income tax rate: 20%, 40% or 45%.
How much is taxable?
The £ value of the tokens on the day you receive them. If ETH was worth £2,000 when you received 0.01 ETH, that's £20 of income, even if the price later falls.
Most crypto tax software values rewards automatically, but check the price source is consistent across the year.
The £1,000 trading and miscellaneous income allowance
- If your total trading + miscellaneous income (gross receipts) is £1,000 or less, it's tax-free and doesn't need reporting (unless you're filing for other reasons and choose to).
- If it's more than £1,000, you can elect to deduct the £1,000 allowance instead of claiming the actual costs of earning it.
- The £1,000 is one allowance, shared between trading income and miscellaneous income. If you've already used £400 of it against a side business, only £600 is left for staking.
- If you claim the allowance, you can't also deduct expenses, and you can't create a loss.
Allowance or actual expenses? Most stakers have no meaningful costs, so the allowance wins. If you run your own validator with real hardware and hosting costs above £1,000, claiming actual expenses could be better.
Exactly where to report it: box by box
Miscellaneous income goes in the "Other UK income" section on page TR 3 of the main SA100 tax return, not the self-employment pages.
Our client's example: £1,300 of staking rewards, no other trading income
| Box (SA100, page TR 3, "Other UK income") | What to enter |
|---|---|
| Box 17: Other taxable income | £300 (£1,300 − £1,000 allowance) |
| Box 18: Total amount of allowable expenses | Leave blank (you claimed the allowance instead) |
| Box 19: Any tax taken off box 17 | Blank (no tax deducted) |
| Box 21: Description of income in boxes 17 and 20 | e.g. "Cryptoasset staking rewards £1,300 – trading income allowance £1,000 claimed" |
This follows HMRC's Other taxable income helpsheet (HS325): if you claim the trading allowance against miscellaneous income, the taxable figure is the income after deducting the allowance.
Result: £300 taxed at the client's marginal rate, so £60 (basic rate) or £120 (higher rate). Without the allowance, £1,300 at 40% would have been £520.
If you don't otherwise file a return
If staking is your only untaxed income and it's modest, HMRC may be able to collect the tax through your PAYE tax code instead of a full Self Assessment return. Contact HMRC to check. If you already file Self Assessment, just use box 17 as above.
When you later sell the staked tokens
Staking rewards are taxed twice in different ways: income tax when received, then capital gains tax on any growth when you later sell, swap or spend them.
- Rewards join your pool for that token at their £ value when received, the same figure taxed as income, so that value isn't taxed again.
- Any gain above the £3,000 annual exempt amount is taxed at 18% / 24%.
- Crypto disposals go in the cryptoasset section (boxes 13.1–13.8) of the SA108 capital gains pages.
Example: you received 0.4 ETH of rewards worth £1,300 (taxed as income, £300 after the allowance). Your ETH pool cost was £4,000 for 2 ETH, so after the rewards it's 2.4 ETH at £5,300. If you later sell 1.2 ETH for £3,600, the cost is £5,300 × 1.2 ÷ 2.4 = £2,650, giving a £950 gain, within the £3,000 exemption.
Full detail: Crypto capital gains tax UK: disposals, pooling and losses · How to report crypto on your tax return
Staking through DeFi?
Liquid staking and staking through DeFi protocols can involve swapping your tokens for a receipt token, which may itself be a disposal under current rules. Draft legislation proposes "no gain, no loss" treatment for qualifying DeFi arrangements from 6 April 2027. Rewards stay taxable. See DeFi, mining and airdrops tax.
HMRC can see more than ever
UK crypto platforms have been collecting user details for HMRC under the Cryptoasset Reporting Framework since 1 January 2026, with the first reports due by 31 May 2027. If you've missed staking income in past years, see HMRC crypto letters and disclosure.
Records to keep
- Every transaction: date, token, amount, £ value, fees, wallet/exchange
- Staking reward history with the £ value at receipt
- Exchange exports (CSV) for each tax year, downloaded before platforms close or change
- Wallet addresses you own (to show transfers between your own wallets)
- The price source you used
Crypto tax software can pull exchange and wallet data together, but always check the output. Missing transfers and mis-tagged staking rewards are the most common errors.
Common mistakes
- Reporting staking on the self-employment pages (and sometimes paying NI unnecessarily).
- Entering £1,300 in box 17 and £1,000 as expenses in box 18. Claim the allowance by entering the net figure (£300) and leave box 18 empty.
- Forgetting the allowance is shared with any side-business trading income.
- Forgetting to add staking rewards to your CGT pool, which overstates later gains.
- Using the wrong £ value. Value rewards on the day you receive them, with a consistent price source.
Not sure what to report? We prepare Self Assessment returns with crypto income and gains, and help with past-year disclosures. Book a free consultation.
Part of our series: Crypto tax UK 2026/27: the complete guide
Related: Crypto capital gains tax · How to report crypto · Self Assessment service
General information for 2026/27, not personal advice. Crypto tax is complex and fact-specific, especially for DeFi. Box numbers are from the 2025/26 SA100. Check the current form.