MTD Guide
MTD Software for Taxi Drivers (HMRC Compliant)
From 6 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 year-end panic.
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You must submit quarterly updates
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Digital records are now required
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Penalties can reach £3,000 per quarter
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TaxiManager handles this for you
By Paul Taylor, Chartered Accountant Last updated:
Watch
Paul explains MTD in plain English
A 26-minute deep-dive from Paul Taylor — what MTD changes for taxi drivers and exactly what to do next.
Who is affected?
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. The threshold drops each year, so more self-employed drivers are pulled in over time — including most Uber drivers on Self Assessment.
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£50,000+
From 6 April 2026
First mandatory phase for qualifying self-employed income.
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£30,000+
From 6 April 2027
Threshold drops a year later.
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£20,000+
From 6 April 2028
Lowest threshold in the phased rollout.
What changes
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 three 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
TaxiManager
Track your income and tax in real time with TaxiManager
Keep MTD-ready digital records from day one. No spreadsheets.
Penalties
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. Wrong profit figures at year end can also knock out your tax credits and housing benefit claims:
- 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
Rules and amounts can change
The cost of poor records is far higher than the cost of getting compliant early. Always check current HMRC guidance and your accountant before acting on specific figures.
The fix
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
- Record weekly or regular entries. Keep income and expenses up to date during the year.
- Stay ready for quarterly reporting. Your records are already organised when quarterly deadlines come around.
- Submit with confidence. Do it yourself, or let PRO MTD handle submissions for you.
Comparison
TaxiManager vs spreadsheets or generic apps
Why a taxi-specialist MTD tool wins on compliance, speed, and risk.
| TaxiManager | Spreadsheets | Generic 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
Frequently asked questions
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. Fuel, mileage, plate fees, commission, vehicle costs, and cash vs card income all belong here.
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.
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.
Get MTD ready
Get MTD ready before HMRC deadlines catch you out.
Start keeping records properly before MTD becomes mandatory. 14 days free, no card required.
Keep reading
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