Why taxi drivers should join the growing number of people filing HMRC tax returns promptly

Self-employed taxi drivers and all other workers stand to gain significantly by filing their Self Assessment tax returns well before the deadline, HM Revenue and Customs (HMRC) advises.

With the filing window for the 2023-2024 tax year open from 6 April 2024 to 31 January 2025, there are compelling reasons for drivers to submit early.

Filing tax returns at the start of the tax year, rather than waiting until the January deadline, allows taxi drivers more time to ensure their financial records are accurate. This proactive approach can prevent the common pitfalls of rushed submissions, such as errors or missed deductions, which can lead to unnecessary queries from HMRC or even penalties.

Moreover, early filing offers better financial planning opportunities. By understanding their tax obligations early, taxi drivers can manage their cash flow more effectively, avoiding the year-end scramble to cover tax bills. This is particularly beneficial for drivers whose income can fluctuate based on seasonal demand.

HMRC’s budget payment plan is another advantage of early filing. This plan allows taxpayers to make incremental payments towards their next tax bill, easing the financial burden with manageable weekly or monthly direct debits. This approach helps taxi drivers spread out their major expenses and align their tax payments with their earning patterns.

Additionally, any overpayment of tax is swiftly refunded once the return is processed. For taxi drivers, this means that any excess money paid can be quickly reinvested into their business or used to cover other essential expenses.

Last year’s data revealed that more than 246,000 people filed their returns in the first week of the tax year, with that figure rising to nearly 300,000 this year, demonstrating a growing trend towards early submission.

According to Myrtle Lloyd, HMRC’s Director General for Customer Services, this shift is not just about meeting tax obligations but also about freeing up more time for personal and business growth.

"By filing your Self Assessment early, you can focus on what you do best – driving and growing your taxi business, without the added stress of looming tax deadlines," Lloyd said.

She encouraged all self-employed taxi drivers to take advantage of the early filing period by visiting GOV.UK and searching for ‘Self Assessment’ to begin their tax return process today.