What records do taxi drivers need for MTD?
MTD is not “scan every receipt into a folder”. It is structured digital bookkeeping: amounts, dates, and categories HMRC systems can ingest from functionally compatible software.
For drivers, the winning approach is boring: capture little and often so quarterly updates become a button press, not a archaeology dig.
Core records (everyone in scope needs)
At minimum, think like an auditor who only believes what is evidenced:
- Income - app statements, bank credits, cash takings logs (as applicable)
- Expenses - fuel or mileage logs, insurance, repairs, tyres, servicing
- Dates - when money moved (not “sometime in March”)
- Categories - consistent labels (commission vs fuel vs licence fees)
If you can show those four dimensions cleanly, you are most of the way to “MTD-ready”.
Driver-specific records (high leverage)
These are the categories that move profit for taxi and private hire work:
- Trip / job income (including surges, incentives where applicable)
- Commission and platform fees
- Licence, badge, plate, medical costs
- Hire & reward insurance and other vehicle cover
- Phone (business share only - document your rule)
What “digital” actually means (practically)
HMRC is aiming at records that are born digital and stay digital - not a photo of a notebook page in a camera roll.
That is why “I keep everything in Excel” often fails the intent: spreadsheets can be non-structured, easy to break, and hard to prove as a continuous digital trail unless set up professionally.
If you are weighing spreadsheets vs software, read can you use spreadsheets for MTD? (UK reality check).
One week, realistically
A decent week might be:
- Monday: import / log app earnings + commission
- Midweek: fuel + any cash job notes
- Sunday: 5 minutes reconciling bank transactions
That weekly loop is what makes how MTD quarterly updates work for drivers painless.
Same data, different questions (benefits)
If you also claim Universal Credit or have Housing Benefit assessments, councils and DWP will still want a coherent profit story - often from similar underlying records.
Our tax credits and housing benefit for self-employed drivers guide explains why profit vs turnover mistakes are expensive there too.
Next steps
- Read the pillar guide: MTD software for taxi drivers.
- Read how MTD quarterly updates work for drivers and can you use spreadsheets for MTD? (UK reality check).
- Start your free trial and keep driver categories consistent all year.