New technology is empowering people to make money in innovative ways and it is little wonder that HMRC has taken notice.

A reported £1.38 billion of taxable gains came from cryptocurrency in the 2024/25 tax year, indicating that it is a significant contributor to the overall tax bill.

With more people becoming curious about technology and rumours of a change to Capital Gains Tax (CGT), now is the time for accountants to consider using technology to keep pace with this emerging client base.

What is the value for accountants to work with crypto-investors?

Cryptocurrency has been viewed as a fairly niche strategy for accumulating wealth, but there is little doubt that the niche is widening with time.

The HMRC report indicated that just 17,600 taxpayers were responsible for the £1.38 billion figure, showing that those who do engage with the process successfully are able to generate a notable amount of wealth.

The revelation of this is likely to have two ripple effects that can benefit accountants: more people will become aware of the value of cryptocurrency and those who engage with it will want to do so in a more tax-efficient way.

HMRC is also doing more to crack down on illicit dealings with cryptocurrency and sent out 65,000 warning letters to cryptocurrency investors over the past year over suspected underpayment of tax.

Put together, it is apparent that there is a growing market of cryptocurrency investors who would benefit from having expert accountant support to help them manage their tax position.

Changes to Inheritance Tax (IHT) and the announcement that the state pension will likely use up more than a person’s entire Personal Allowance have inspired people to seek other avenues of building wealth, which could explain why 58 per cent of the gains were made by those aged 35 to 54.

How would an accountant use technology to work with cryptocurrency clients?

Cryptocurrency can be complicated and it would be remiss of any accountant to overlook the less savoury connotations of the practice.

Additional steps should be taken to ensure that clients are not engaging in money laundering practices or similar criminal activity, given that cryptocurrency is a popular choice for those with nefarious purposes.

However, an entire generation has grown up aware of the value of cryptocurrency and it may be worthwhile engaging with them to promote better tax practices and greater compliance.

Knowing how to handle a new type of client requires a robust team that is able to dynamically assess all of the information connected to an individual’s estate.

Chasing for this information could quickly eat into an accountant’s time, dramatically reducing the value of this exciting new line of work.

Glasscubes cuts through the chaos by automatically issuing tailored requests to clients to ensure that accountants have every piece of information they need before getting stuck into work.

Where client documents become complex, the bespoke AI embedded in Glasscubes is able to extract and summarise the data, ensuring that nothing slips through the cracks.

The efficiency with which you will be able to process your client’s accounts will demonstrate that you are the right kind of accountant to keep pace with a forward-thinking investor making their money from cryptocurrency.

The efficient process will also give you enough time to conduct more thorough checks and reviews to verify that the financial activities of clients are legitimate.

Don’t be left behind by tech-powered clients, book a demo today.