Searches on HMRC’s Making Tax Digital soar ahead of changes impacting taxi drivers and self-employed workers bring in over £50,000
- Perry Richardson
- 6 minutes ago
- 2 min read
Self-employed business owners, which includes taxi and private hire drivers, are increasingly searching for guidance on Making Tax Digital (MTD), as fresh analysis reveals HMRC is struggling to cope with demand for support.
The data, compiled by finance specialists RIFT, shows a sharp rise in online searches for MTD since the start of the year. The new rules, which come into force in April 2026, will require digital tax reporting for anyone self-employed or renting out property with annual income over £50,000.
The updated process replaces the single annual tax return with quarterly submissions using HMRC-approved software. A final declaration will still be needed by the end of the following January. The aim is to improve accuracy and give more regular updates on tax obligations, but it also means new software costs and extra admin pressure for many businesses.
Missing a quarterly deadline under MTD will also trigger penalties and possible interest charges.
According to RIFT, search volumes for MTD rose sharply this year. From a monthly average of just under 9,000 in late 2023, the number of searches more than doubled in the first quarter of 2025, hitting an average of nearly 20,000 per month. A peak was recorded in March, with over 34,000 searches. April and May saw that figure rise again, with over 43,000 average monthly searches so far in Q2.
RIFT say the surge appears to be driven by difficulties contacting HMRC directly.
RIFT also reviewed official data on call performance. In October 2024, HMRC answered 90.2% of calls. That dropped to 82.3% in January and dipped further to 80.9% in February, the lowest level in six months. The number of calls not handled has grown sharply, with nearly 600,000 missed in January 2025 alone.
Average call waiting times have also increased. In October, the average wait was just under 11 minutes. By February, it had doubled to over 21 minutes.
Bradley Post, MD of RIFT, said: “April 2026 may seem like a while away yet, but it’s clear that the changes on the horizon as a result of Making Tax Digital are already at the forefront of many self-employed business owners.
“Unfortunately, HMRC simply isn’t equipped to facilitate the surge in demand for its guidance and advice ahead of such a notable change and it’s clear that many are having to seek their own answers via the internet.
“For those in fear of being penalised through no fault of their own, alternative help is available.
“Working closely with an accountant or tax specialist ahead of the April 2026 deadline can make the transition smoother and help avoid penalties and we strongly advise that you do just this if you’re failing to get the answers you need from HMRC themselves.”
