Although composite hydrogen tanks are becoming increasingly intriguing, a detailed structural reliability analysis is still lacking. The current landscape of analysis for pressurised multilayer cylinders, while rich in research, lacks tools to deal with the low probabilities of failure that govern the design of hydrogen tanks. This study presents a computational framework integrating the Subset Simulation method (SS) for assessing the failure probability of composite tanks used for hydrogen storage. To explore how randomness impacts design parameters, this study utilises a limit state equation derived from the thin-walled circumferential model of composite pressure tanks. Five random variables, each with varying coefficients of variation (COVs), are incorporated into the analysis. For comparison and validation purposes, two methods Monte Carlo simulations and FORM have been used. The analysis revealed that SS excels at estimating the low failure probabilities of composite hydrogen tanks, and showed also the feasibility and accuracy of SS in the prediction of burst pressure since good agreement was obtained between the probabilistic approach and the experimental results. Furthermore, the uncertainties related to internal pressure and composite thickness affect significantly the reliability of the structure and can lead to the shrinkage of the safety margin and the failure of the vessel.