29/04/2026
🚖 Taxi Drivers: A Clear Guide to Making Tax Digital (MTD)
If you're self-employed and driving a taxi, Making Tax Digital (MTD) isn’t just a future idea — it’s becoming part of how you’ll report your income to HMRC.
Here’s a straightforward breakdown:
📊 What is MTD?
MTD is a system that requires you to keep digital records of your earnings and expenses and send updates to HMRC using compatible software.
📅 When does it affect taxi drivers?
MTD for Income Tax is expected to apply to self-employed individuals earning over £50,000 from April 2026, and over £30,000 from April 2027.
📂 What records do you need to keep?
- Daily fares (cash & card)
- App income (Uber, Bolt, etc.)
- Fuel, insurance, maintenance
- Vehicle-related costs
- Any other business expenses
📱 How will you submit?
Instead of one annual tax return, you’ll send quarterly updates plus a final yearly submission — all digitally.
⚠️ Why this matters now:
- No more relying on paper logs
- Late or incorrect reporting could lead to penalties
- Getting set up early avoids last-minute stress
Staying organised isn’t just about compliance — it helps you understand your real earnings and run your taxi business smarter.