HMRC outlines new digital payment changes for taxi and private hire drivers and other workers filing Self Assessment
- Perry Richardson
- 1 day ago
- 2 min read
Taxi drivers, private hire drivers and other workers who manage their tax through Self Assessment can expect several changes designed to make the process simpler, according to HMRC’s new Transformation Roadmap.
The updates include improved online registration and opt-out systems, clearer progress messages when dealing with HMRC online, and an easier way to appeal late filing or payment penalties. These changes are aimed at making it less time-consuming for self-employed drivers to manage their tax obligations.
Many self-employed drivers will be making their second Payment on Account by the end of July. These advance payments, based on last year’s tax bill, help spread the cost by paying in two instalments across the year.
HMRC’s roadmap outlines how it plans to become mostly digital by 2030, with 90% of interactions handled online. More than 50 IT projects are in the pipeline, including new tools to make it easier for Self Assessment users to file and pay their tax.
Drivers are encouraged to file their 2024 to 2025 tax return early this summer. Doing so could mean earlier refunds or lower future payments if income has dropped. It also helps avoid last-minute pressure ahead of the 31 January 2026 deadline.
To avoid penalties, drivers must make sure tax is paid on time. The HMRC app can be used to make payments, check records and set up payment plans. Drivers can also use Budget Payment Plans to pay in regular weekly or monthly instalments throughout the year, easing the financial burden of one large bill.
New drivers, or those returning to Self Assessment, must register by 5 October 2025 to receive their Unique Taxpayer Reference. Anyone who thinks they no longer need to submit a return must inform HMRC by 31 January 2026 or risk a penalty.
Looking ahead, taxi and private hire drivers earning over £50,000 will need to follow new digital rules under Making Tax Digital from April 2026. This includes keeping records digitally, using approved software, and sending quarterly updates to HMRC. HMRC is urging drivers to prepare now and join the testing programme available on GOV.UK.
James Murray, Exchequer Secretary to the Treasury, said: “The government is modernising the service that HMRC offers for British people and businesses. Our new payment plans for Self Assessment will save people time and effort with their tax affairs and help them avoid making mistakes.”
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Filing your tax return early, making payments on account and setting up a manageable payment plan are three simple steps you can take to help stay in control of your tax affairs, so why not tick off all these at once? The deadline for the next Payments on Account is due and it’s the ideal opportunity to file your next tax return early and get a big chunk of tax admin crossed off your to do list.”
