Is there a risk that Making Tax Digital could accelerate retirement for older taxi drivers?
- Perry Richardson
- Apr 28
- 2 min read
The upcoming introduction of Making Tax Digital (MTD) for Income Tax in April 2026 could push some older taxi drivers to consider retirement earlier than planned. Under the new rules, self-employed individuals, including cab drivers, earning over £50,000 will be required to keep digital records and file quarterly income and expense updates using approved software.
While the changes are intended to streamline tax reporting and reduce errors, concerns are growing across the trade that this digital shift could place undue pressure on drivers who are less comfortable with technology.
Many older drivers have built careers using paper-based logs and handwritten notebooks to track earnings. For them, switching to digital accounting software and sending updates to accountants or HMRC four times a year may not be as straightforward. While some may adapt with support, others could see this as a barrier too great to overcome.
Given the aging demographic of taxi drivers throughout the UK, there has long been concern around a digital confidence gap in the industry. The thought of navigating tax apps, uploading expense records or dealing with software subscriptions may deter some from continuing beyond the 2026 deadline.
Some long-serving drivers are already operating reduced hours or taking fewer bookings. For these individuals, the added burden of complying with digital tax rules may tip the balance in favour of retirement. If continuing to work means taking on digital admin they’re unfamiliar with—or paying accountants to manage it—some may choose to step away entirely.
There is also a financial consideration. Those working fewer hours or nearing retirement age may fall just above the income threshold for MTD further down the line, drawing them into the tax rules. Unless further exemptions or support are offered, for those nearing the end of their careers, retirement could become the path for some.
To avoid a potential further loss to skilled drivers across the taxi industry, especially among experienced drivers, there may be a need for targeted support. Could regulators or trade associations discuss the idea of offering workshops or one-on-one help to guide drivers through the digital changes?
If not, the industry risks seeing a reduction in licensed driver numbers at a time when passenger demand in many areas remains good and local authorities continue to face pressures to maintain transport options.
While MTD is designed to modernise how tax is managed, it may also act as a turning point for some in the trade. For older taxi drivers, the question may not just be about learning new systems—it may be about whether the change fits into their plans for the years ahead.
