Taxi drivers face first set of digital tax submissions by 7 August 2026 under new HMRC Making Tax Digital rules
- Perry Richardson
- May 23
- 2 min read
Self-employed taxi drivers turning over £50,000 annually will be required to submit their first set of quarterly digital tax records to HMRC by 7 August 2026, under new Making Tax Digital (MTD) rules starting in April 2026.
From 6 April 2026, drivers must use compatible software to log their income and expenses and send updates every three months. This change forms part of HMRC’s wider plan to move Income Tax Self Assessment into a digital format.
Drivers can choose between two types of reporting periods: standard (aligned with the tax year) or calendar quarters. Their choice must be set before the first update is submitted and will apply for the full tax year. Those using the standard option will report from 6 April to 5 July, with the first update due by 7 August 2026.
Quarterly updates must show cumulative figures from the beginning of the tax year to the end of each reporting period. This means the second update will include all relevant financial data from 6 April to 5 October (standard) or 1 April to 30 September (calendar).
The new process is aimed at spreading out the reporting workload, reducing the end-of-year rush associated with annual self-assessments. HMRC says the system is designed to reduce errors and help individuals stay on top of their finances.
Penalties will not apply during the voluntary phase. However, when the scheme becomes mandatory in 2026 for those earning over £50,000, a points-based system will be introduced. A financial penalty will only apply if four penalty points are built up from late submissions.
After the final quarterly submission is made for the tax year, drivers will still be expected to review and make any required adjustments to finalise their position for HMRC.
The threshold for mandatory participation will fall to £30,000 in April 2027 and again to £20,000 in April 2028, bringing more taxi drivers into scope over time.
Quarterly Submission Deadlines
The deadlines for submitting these quarterly updates depend on whether you opt for the standard or calendar update periods:
Standard Update Periods (aligned with the tax year: 6 April to 5 April):
6 April to 5 July: due by 7 August
6 July to 5 October: due by 7 November
6 October to 5 January: due by 7 February
6 January to 5 April: due by 7 May
Calendar Update Periods (aligned with calendar quarters):
1 April to 30 June: due by 7 August
1 July to 30 September: due by 7 November
1 October to 31 December: due by 7 February
1 January to 31 March: due by 7 May
