5.8 Crypto Tax Software for Beginners: How to Use It Without Getting Overwhelmed
Crypto Tax Software for Beginners: How to Use It Without Getting Overwhelmed
After this chapter you will understand:
- Why crypto tax software exists and how it helps simplify the process of calculating your gains, losses, and taxable events.
- What basic features you should look for in beginner‑friendly tools, using real‑world examples like Koinly and Awaken.
- How to get started with one of these tools, connect your exchanges, and generate a simple HMRC‑ready report.
If you need help with crypto taxes try these crypto tax solutions
Why Crypto Tax Software Exists
For most beginners, tracking every crypto trade manually quickly becomes frustrating. You buy on one exchange, swap on a DEX, stake on a protocol, and maybe spend a little somewhere else – multiply that by a few wallets, and suddenly you’re staring at screenshots, spreadsheets, and vague memories. This is exactly where crypto tax software comes in.
Crypto tax tools are designed to connect to your exchanges, wallets, and protocols, pull in your transaction history, and automatically calculate your gains, losses, and taxable events based on HMRC rules. Instead of manually entering thousands of trades, you import data once and let the software do the heavy lifting. The result is a clear, organised picture of your tax position that can be exported into formats HMRC accepts or into your accountant’s system.
For beginners, the main benefit is simplicity and peace of mind. You no longer need to worry about missing a trade or mis calculating your gains. The software becomes a safety net that keeps your records consistent and up to date.
Example Tool 1: Koinly – Beginner Friendly Crypto Tax Platform
Koinly is one of the most popular crypto‑tax platforms for UK investors. It helps you import your trades from exchanges and wallets, auto‑calculate your gains, losses, and income, and generate reports tailored to HMRC rules.
What makes Koinly good for beginners is that it:
- Works with many UK‑friendly exchanges (Coinbase, Kraken, Binance, Bitpanda, Revolut, etc.).
- Automatically calculates GBP‑denominated gains and losses, showing you what falls under your CGT allowance.
- Lets you export HMRC‑style reports(PDF/Excel) for Self Assessment or your accountant.
How to get started with Koinly (quick steps):
1. Create an account
- Go to `koinly.io` and sign up for an account (there’s a free tier for small portfolios and paid plans with more features).
2. Add your exchanges and wallets
- In the dashboard, click “Add Wallet/Exchange”.
- Choose your exchange (e.g., Coinbase, Kraken) or import via CSV/API key.
- If you use MetaMask or another wallet, add it via wallet connect or manual import.
3. Verify and categorise your data
- Koinly pulls in all your trades, swaps, deposits, and withdrawals.
- Check that dates, amounts, and descriptions look right; if needed, edit or delete mistaken entries.
4. View your crypto tax position
- Go to the “Tax Report” section.
- Select “UK – HMRC” as the tax jurisdiction.
- Koinly will show:
- Total gains and losses for the tax year.
- How much sits under your CGT allowance.
- Your estimated taxable gain above the allowance.
5. Export and use the report
- Download the HMRC‑style report (PDF or Excel).
- Use this to help fill out your SA108 (crypto page) or hand it to your accountant.
For beginners, Koinly is a good “set and forget” style tool: once you connect your exchanges, it keeps recalculating your tax position as new trades come in.
Example Tool 2: Awaken – Simple, Beginner Friendly Dashboard
Awaken is a more streamlined, beginner focused platform that helps you track crypto transactions and tax in a simple dashboard. It focuses on ease of use and clear summaries, often aimed at non‑technical users and those who mainly hold or trade via a few mainstream platforms.
What makes Awaken style tools attractive for beginners is that they:
- Offer a clean, simple interface with easy‑to‑read summaries of your gains, losses, and overall tax position.
- Often integrate tightly with specific exchanges or brokers, minimising the need for manual CSV uploads.
- Highlight tax‑relevant events(sales, swaps, spends) so you don’t miss them.
How to get started with Awaken:
- If Awaken is linked to your exchange or broker, log in with that account or use Oauth/API to grant access.
- If CSV is needed, export your transaction history from your exchange and upload it into the tool.
2. Let it categorise your activity
- The tool will automatically sort your trades into buys, sells, swaps, spends, and rewards.
- Check that staking, airdrops, or referral rewards are marked correctly as income‑type activity where relevant.
3. View your tax‑ready overview
- Open the tax or portfolio section to see:
- Total realised gains and losses for the year.
- Whether you’re above or below typical thresholds (like the CGT allowance).
- Many tools show a simple “potential tax” estimate at 18% or 24%, depending on your assumed income band.
4. Export or share with your accountant
- Download a summary PDF or spreadsheet of your crypto activity.
- Pass this to your accountant or keep it alongside your Self Assessment notes.
For beginners, Awaken tools are particularly useful if you only use a few platforms and want a clean, simple view of your tax position without wrestling with complex settings.
How to Choose the Right Tool for You
As a beginner, you don’t need the most advanced software; you need something that’s easy to set up, accurate for UK rules, and gives you an HMRC friendly report. Broadly:
- Koinly is ideal if you use multiple exchanges and wallets and want a full‑service, HMRC‑focused solution.
- Awaken tools are ideal if you mainly use one or two platforms and want a simple, visual dashboard.
You can start very practically:
1. Pick your crypto tax software - Koinly, Awaken, CoinLedger etc.
2. Connect all exchanges/wallets where you’ve bought or traded crypto.
3. Let the software auto import and calculate gains and losses.
4. Check one sample year yourself to verify the numbers match your memory.
5. Export the tax report and keep it in a safe folder for Self Assessment or your accountant.
If you need help with crypto taxes try these crypto tax solutions
By the end of this chapter, you should feel confident choosing and using beginner friendly crypto tax software that helps you track your gains, losses, and taxable events while staying aligned with HMRC’s expectations.
FCA Registered Cryptoasset Exchanges
Cryptoassets are high-risk and unregulated; verify on FCA register.
Crypto.com
Buy, sell and trade crypto in GBP; optional DeFi wallet, 140M+ users worldwide.
Bitpanda
Multi-asset investing: crypto, stocks, ETFs, metals and commodities in one app.