Less paperwork, more driving? How HMRC plans to automate and digitise tax for self-employed taxi drivers and other workers
- Perry Richardson
- 12 hours ago
- 2 min read
HMRC has recently unveiled a digital transformation roadmap outlining key changes to digitalise tax administration for all businesses and individuals. Although not explicitly aimed at taxi or private hire vehicle (PHV) drivers, several elements will have a direct impact on their day-to-day operations.
The overhaul introduces a more intelligent and automated tax system. Drivers will need to use more streamlined Self Assessment filing and streamlined record‑keeping. HMRC plans to integrate AI and digital tools that can help highlight errors early and reduce the burden of manual accounting.
As part of this new approach, simple everyday tax tasks will be automated and become more intuitive. For drivers, that should mean fewer mistakes and less time spent on paperwork. The use of AI should flag any missing or unusual entries, guiding drivers to correct issues before filing.
HMRC aims to make tax compliance seamless. New features like real‑time income tracking through digital dashboards will allow drivers to monitor earnings, tax owed, and payments due. This approach aims to help avoid surprises and ensure drivers remain aligned with their obligations.
On enforcement, the roadmap emphasises swift action against deliberate non‑compliance. This signals the need for taxi and PHV drivers to maintain accurate digital records and stay registered when required. HMRC aims to quickly detect and address those intentionally avoiding tax.
The roadmap also includes major internal restructuring, such as integrating the Valuation Office Agency into HMRC by April 2026. These changes should enhance the department’s overall efficiency, potentially leading to better taxpayer support and faster processing of enquiries and refunds.
Due to the scale of this transformation, backed by an estimated £7 billion investment annually and efficiency savings of £773 million by 2028, drivers should expect a phased rollout. New tools and platforms will arrive gradually, with heavy engagement and training likely, particularly for small business owners like taxi and PHV drivers.
The shift to digital should in theory reduce time spent managing tax affairs, freeing up more time on the road, but much depends on the level of understanding from cabbies and their knowledge around digital platforms.
