SIX MONTHS TO GO: HMRC urges taxi drivers to prepare for digital tax changes as clock ticks down
- Perry Richardson
- Oct 3
- 2 min read
HMRC is urging sole trader taxi drivers and landlords taking over £50,000 in revenue to begin preparing for Making Tax Digital (MTD) for Income Tax, which becomes mandatory in April 2026.
With six months to go until the rollout, drivers are being advised to join HMRC’s testing programme. The initiative offers a chance to get familiar with the new digital system and receive direct support before it becomes a legal requirement.
HMRC says the new system will not mean extra tax returns. Instead, quarterly updates will replace the traditional once-a-year Self Assessment process. These updates are generated automatically by MTD-compatible software, which acts as a digital bookkeeping tool. Errors can be corrected in later submissions, and the system gives real-time estimates of the driver’s tax bill throughout the year.
Software will be essential, but HMRC notes there are both free and paid options. Some products will work alongside existing spreadsheets or accounting tools already used by drivers, so long as they meet the digital reporting requirements.
The advice however remains clear: start early to avoid disruption come April 2026.
Craig Ogilvie, HMRC MTD director, said: "Tax is changing and with just six months until Making Tax Digital for Income Tax comes into effect, now's the time to start preparing.
“MTD is about spreading your tax admin throughout the year instead of that January scramble to complete your Self Assessment return.
“There are free software options available, and early feedback from our testing participants shows the system is straightforward once you are familiar with it.
“Don’t delay – go to https://makingtaxdigital.campaign.gov.uk/ to learn more and sign up to our testing programme today.”
