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HMRC urging taxi drivers turning over more than £30,000 to act now before Making Tax Digital deadline in six-months
Taxi drivers and other sole traders with qualifying income above £30,000 have six months to prepare for Making Tax Digital (MTD) for Income Tax, which becomes mandatory for them from 6 April 2027.
HM Revenue and Customs is urging affected taxpayers to check whether they meet the threshold, sign up through GOV.UK and begin preparing. The threshold is based on gross income from self-employment and property before expenses or tax allowances are deducted.
Around 1,077,000 additional sole traders and landlords are expected to join the service from April 2027. They will need to keep digital records and use compatible software to send HMRC quarterly updates of their income and expenses, as well as complete their tax return.
The quarterly updates are summaries rather than additional tax returns. HMRC says recording information throughout the year could reduce the time spent gathering records at tax return time and help taxpayers avoid a last-minute rush.
Signing up early gives users time to check their details and choose software that suits their business. Tax agents can also sign up clients through GOV.UK.
The next expansion follows the April 2026 start for sole traders and landlords with qualifying income above £50,000. Their second quarterly update is due on 7 November.
The income threshold is scheduled to fall further, to £20,000, from April 2028, extending MTD for Income Tax to more sole traders and landlords.
Craig Ogilvie, HMRC's Director of Making Tax Digital, said: "Hundreds of thousands of sole traders and landlords are already successfully using Making Tax Digital and now it's time for the next group to get ready.
"Signing up now means you can prepare and familiarise yourself with the process before it becomes mandatory next April."
