Four quarterly tax reporting dates taxi drivers and self-employed workers MUST NOT MISS under new digital HMRC rules
- Perry Richardson
- 2 hours ago
- 2 min read
Taxi drivers earning more than £50,000 who fall into the first wave of Making Tax Digital for Income Tax will face four fixed quarterly reporting deadlines during the 2026 to 2027 tax year, starting just four months after the regime goes live.
From 6 April 2026, affected drivers will be required to keep digital records and submit quarterly summaries of income and expenses to HM Revenue and Customs using approved software. These submissions are mandatory for sole traders and landlords who earned more than £50,000 in the 2024 to 2025 tax year, including large numbers of full-time taxi and private hire drivers.
The first quarterly update will be due on 7 August 2026 and will cover trading activity between 6 April and 5 July 2026. This is the first time many drivers will interact with the new system, and HMRC has stressed that the update is a summary rather than a full tax return, designed to give a snapshot of income and allowable expenses.
The second reporting deadline falls on 7 November 2026, covering the period from 6 July to 5 October. For drivers with fluctuating earnings, this quarter often includes the late summer and early autumn period, making accurate digital record keeping essential to avoid rushed submissions close to the deadline.
August 2026 marks the first submission deadline for drivers entering Making Tax Digital for Income Tax
A third quarterly update will be required by 7 February 2027, accounting for income and costs between 6 October 2026 and 5 January 2027 (Q3). This submission lands shortly after the Christmas trading period, traditionally one of the busiest times for the taxi trade, increasing the risk of missed deadlines for those not prepared.
The fourth and final quarterly update of the tax year will be due by 7 May 2027 and will cover activity from 6 January to 5 April 2027 (Q4). This completes the cycle of quarterly submissions, after which drivers will move towards finalising their annual position.
Although quarterly updates are required, drivers will still need to submit a full Self Assessment tax return for the 2026 to 2027 tax year by 31 January 2028. HMRC has said the digital software will already contain the information from the quarterly updates, reducing the administrative burden at year end.
To ease the transition, HMRC confirmed that no penalty points will be issued for late quarterly submissions during the first 12 months for those joining in April 2026. After that period, late submissions will attract points, with a £200 penalty applied once four points are reached.
HMRC is urging taxi drivers to familiarise themselves with the quarterly dates now, choose compatible software and review official guidance available via GOV.UK, warning that missing multiple deadlines could lead to financial penalties once the grace period ends.
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