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Hello TaxShredders, HMRC’s crypto reporting rules are tightening in 2026—don’t get fined! This week, we’re tackling the Cryptoasset Reporting Framework (CARF), a crypto user’s £15K tax win through smart trading, and three trading hacks to stay compliant. Perfect for freelancers, SMEs, and crypto users—let’s shred those taxes together!
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—The TaxShredder Team

Lead Story: How a Crypto User Dodged £15K in Taxes Under CARF 2026

Meet Alex, a London-based freelance designer earning £70K, with £60K in crypto gains from trading. As CARF kicks in January 2026, requiring platforms to report all transactions to HMRC, Alex faced a hefty CGT bill at 24% for higher-rate taxpayers. By strategically timing trades and using an AI platform for tracking, Alex harvested losses, offset gains, and reduced the bill by £15K.

Here’s why it worked:

• Buy Timing: Used dollar-cost averaging during market dips (RSI below 30 indicating oversold), entering at support levels to build positions tax-efficiently without triggering immediate income tax.
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• Sell Strategy: Sold underperforming coins at year-end for loss harvesting, offsetting gains and lowering CGT liability, while judging exits at resistance levels or RSI above 70 (overbought signals).
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• Coin Spotting: Focused on promising coins by evaluating whitepapers, team credentials, adoption metrics, high trading volume, and GitHub activity, ensuring long-term holds qualified for lower CGT rates (18-24%) rather than income tax on frequent trades.
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  Get Started: Explore free crypto tracking resources. Need crypto tax help? Book a free consultation at taxshredder@taxshredder.co.uk. Disclaimer: General tax info only, consult a professional (BIM35000).

Success Story: SME Owner’s £7K Crypto CGT Save

Sara, a Birmingham SME owner in e-commerce, saved £7K in 2025 by spotting high-potential coins with strong adoption and exiting at optimal points using candlestick patterns. Her trades triggered CARF-like scrutiny, but strategic long-term holds reduced CGT to 18%, proving compliance. Sara says, “Smart entry/exit turned gains into tax savings!”

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X trends (#CryptoTaxUK) show 70% of UK crypto users worry about CGT hikes and reporting. Don’t be next!

Your Move: Explore GoSimpleTax’s free demo to see how AI can streamline your SMB’s taxes. Share your story at taxshredder@taxshredder.co.uk for a chance to be featured!

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Quick Tips: 3 AI/Fintech Hacks for Crypto Trading & Taxes 2025/26

• Spot Coins Smartly: Evaluate whitepapers, teams, volume, and GitHub for promising picks, tying to long-term holds for lower CGT. Try it.
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• Judge Entry/Exit: Buy at RSI <30/support levels for dips, sell at RSI >70/resistance for profits, harvesting losses tax-efficiently.
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• Trade Tax-Wise: Use dollar-cost averaging for buys, balance short/long-term to minimize 24% CGT or income tax implications.

Tax News Flash: HMRC CARF Reporting Starts Jan 2026

HMRC’s CARF mandates platforms to report crypto transactions from January 2026, targeting evasion and raising £315m in revenue, per GOV.UK’s updates. 9 2 Errors in CGT filings (18-24%) trigger penalties. Stay safe:

• Use fintech tools for transaction tracking, saving on CGT via loss offsets.
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• Spot coins with adoption potential for tax-efficient holds. Prep now—Self Assessment deadline is January 31, 2026.
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Act Now: Download our free crypto guide. Need help? Email taxshredder@taxshredder.co.uk. Disclaimer: General tax info only.

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