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HMRC detail five things taxi drivers need to know before the next Making Tax Digital deadline
Taxi drivers and other sole traders with qualifying income above £50,000 must send their second Making Tax Digital for Income Tax quarterly update by Saturday 7 November 2026. HM Revenue and Customs (HMRC) has published guidance on common questions to help customers prepare.
The requirement became mandatory on 6 April 2026 for sole traders and landlords whose qualifying income exceeds the threshold. Updates must be sent using HMRC-recognised software, including bridging software for people who keep records in spreadsheets.
HMRC says a quarterly update is not a tax return. It is a summary of self-employment and property income and expenses, submitted through compatible software. Customers do not calculate their tax or make a payment when sending one.
Their overall tax position will be calculated when they submit their tax return for the 2026 to 2027 tax year. HMRC’s clarification aims to distinguish the regular reporting updates from the annual tax return.
Customers who successfully submitted their first update in August do not need to contact HMRC to confirm it was received. They can check their submission history through their HMRC online account or MTD software.
HMRC says customers have a choice of recognised software, including products designed for sole traders and landlords, more advanced accounting packages and some free options. People using spreadsheets can connect them to bridging software. GOV.UK provides guidance to help customers select software that meets their needs.
If a customer finds an error in a digital record, they should correct it as soon as possible. The correction will be reflected in the next quarterly update, so there is no need to resend a previous update.
The deadline falls on a Saturday, but customers can submit on or before 7 November. HMRC is encouraging them to send updates as early as possible after the end of the reporting period. Phone support is available during the week, while the Self Assessment helpline will also be open from 9am to 3pm on Saturday for customers who need help submitting.
Craig Ogilvie, HMRC's Director of Making Tax Digital, said: "Thousands of sole traders and landlords have already successfully sent their first quarterly update, and we want the second to be just as straightforward.
“As the next deadline approaches, we’re helping customers prepare with confidence by answering common questions about MTD and highlighting the support available.
"Customers can send their update any time before 7 November and I would encourage them to do so as early as possible to ensure they have everything in place before the deadline."
