Making Tax Digital for taxi drivers is now in force

MTD Software for Taxi Drivers (HMRC Compliant)

From April 2026, many self-employed taxi and private hire drivers must submit quarterly updates to HMRC under Making Tax Digital.

TaxiManager keeps your records digital and HMRC-ready — without spreadsheets, stress, or last-minute panic.

Avoid penalties of up to £3,000 per quarter for missing digital records.

Start your 14-day free trial See how it works

TaxiManager MTD software for self-employed taxi and private hire drivers
HMRC compliant records
Quarterly updates ready
Up to £3,000 penalty risk
PRO MTD filing available

Do Taxi Drivers Need Making Tax Digital?

Yes — if your self-employed income is above the HMRC threshold.

Making Tax Digital for Income Tax is being rolled out in phases:

  • £50,000+ qualifying income → from 6 April 2026
  • £30,000+ qualifying income → from 6 April 2027
  • £20,000+ qualifying income → from 6 April 2028

What MTD Means for Taxi Drivers

No paper. No shoebox receipts. No year-end panic.

Under MTD for Income Tax, eligible self-employed drivers must:

  • keep digital records of income and expenses (no paper)
  • send quarterly updates to HMRC every 3 months through compatible software
  • submit a final declaration at year end through software
  • use HMRC-readable income and expense categories
  • keep records in functionally compatible software
  • be accountant-ready shortly after each quarter end

What Happens If You Ignore MTD?

HMRC exposure is not limited to small fixed fines.

Miss the deadlines, skip the digital records, or leave it all to year end — and the cost stacks up fast:

  • Penalty points for missed quarterly deadlines
  • Financial penalties for late filing
  • Up to £3,000 per quarter for inadequate digital records held in functionally compatible software
  • Higher HMRC audit exposure when records don’t match
  • Interest on late tax payments
  • Rushed year-end catch-up — more errors, more risk

The cost of poor records is far higher than the cost of getting compliant early. Rules and amounts can change — always check current HMRC guidance and your accountant.

How TaxiManager Helps You Stay Compliant

Not another generic accounting app — built for taxi and private hire drivers.

  • Track income and expenses on the go — weekly logging, no spreadsheet
  • Always ready for quarterly updates — no catch-up sprints
  • Optional PRO MTD filing — we submit for you
  • Built for taxi drivers: fuel, mileage, plate fees, commission, cash vs card
  • Cleaner books for your accountant
  • Digital records held in compatible software (HMRC requirement)

Your 3-step compliance loop

  1. Record weekly or regular entries
    Keep income and expenses up to date during the year.
  2. Stay ready for quarterly reporting
    Your records are already organised when quarterly deadlines come around.
  3. Submit with confidence
    Choose the route that suits you, including PRO MTD support if you want help with submissions.

TaxiManager vs Spreadsheets or Generic Apps

Why a taxi-specialist MTD tool wins on compliance, speed, and risk.

  TaxiManager Spreadsheets Generic accounting app
HMRC MTD compliant Yes No Sometimes
Taxi driver categories built-in Yes No No
Quarterly-ready records Automatic Manual Manual
Optional filing support PRO MTD No Varies
Risk of £3,000 record penalty Low High Medium
Support Taxi-specialist None Generic

FAQ

Do taxi drivers need MTD?
Yes — if your qualifying self-employed income is above the HMRC threshold for that tax year. MTD for Income Tax starts from 6 April 2026 for income over £50,000, then drops to £30,000 (2027) and £20,000 (2028).
What software is HMRC compliant for taxi drivers?
You must use functionally compatible software that keeps digital records and can send quarterly updates to HMRC. TaxiManager is built specifically for self-employed taxi and private hire drivers. Always check HMRC’s current list of recognised MTD software alongside any app you choose.
Can I submit MTD myself, or do I need an accountant?
You can submit yourself directly through compatible software, or keep your books in TaxiManager and hand them to your accountant. If you’d rather not deal with HMRC submissions at all, PRO MTD filing lets us handle it for you.
What records do I need to keep for MTD?
Digital records of income and expenses with dates, amounts, and HMRC-readable categories — kept in functionally compatible software (not paper, not photos of receipts only). Fuel, mileage, plate fees, commission, vehicle costs, and cash vs card income all belong here.
Do all taxi drivers need to use MTD from April 2026?
No. The first mandatory phase starts from 6 April 2026 for eligible sole traders and landlords with qualifying income over £50,000.
Will the threshold stay at £50,000?
No. HMRC says the threshold reduces to £30,000 from 6 April 2027 and to £20,000 from 6 April 2028.
Do I need to send updates every quarter?
Yes. HMRC says quarterly updates are sent every 3 months through compatible software. Working with an accountant? Many practices need your books complete shortly after each quarter end — sometimes by the 10th day after (confirm the dates your own adviser uses).
What penalties can HMRC impose under MTD?
HMRC can apply penalty points and financial penalties if you miss submission deadlines or fail to keep proper digital records. Failing to maintain required records, or to preserve them in functionally compatible software, may attract penalties of up to £3,000 per quarterly period in some circumstances. Rules and amounts can change — check current HMRC guidance and your accountant.
Can I wait until the last minute?
You can, but quarterly cycles are much faster than a single year-end return. Last-minute entries increase the risk of errors, missed deadlines, and HMRC penalties — including record-keeping charges that can run to thousands of pounds per quarter in serious cases.

Get ready for MTD now —
before HMRC deadlines catch you out.

Start keeping your records properly before MTD becomes mandatory. 14 days free, no card required.

Start your 14-day free trial Choose PRO MTD filing support