Self-employed taxi and private hire drivers with qualifying income above £30,000 have about six months to get ready for Making Tax Digital for Income Tax, which becomes mandatory for that group from 6 April 2027.
HMRC is telling affected sole traders and landlords to check the threshold now, sign up on GOV.UK and choose compatible software before the rules bite.
Who is in scope
The £30,000 figure is based on qualifying income — gross income from self-employment and property before expenses or tax allowances. For many cabbies that means total metered/app fares and other self-employed turnover, not profit after fuel, insurance and other costs.
HMRC says around 1,077,000 more sole traders and landlords are expected to join from April 2027. They will need to keep digital records, use HMRC-recognised software to send quarterly income and expense updates, and file their tax return through that software.
Quarterly updates are summaries, not extra tax returns. HMRC argues keeping records through the year should cut the January rush.
To sign up you must already be registered for Self Assessment and have submitted a tax return in the last two years. Agents can sign clients up through GOV.UK.
Already live for the £50k group
MTD for Income Tax has been mandatory since 6 April 2026 for sole traders and landlords with qualifying income above £50,000. Their second quarterly update for that first year is due by 7 November.
The threshold is due to fall again, to £20,000, from April 2028 — so more drivers will be pulled in even if they sit under £30,000 today.
What HMRC wants drivers to do
1. Work out whether your qualifying income is above £30,000 (see HMRC’s qualifying income guide).
2. Pick software that works with MTD for Income Tax.
3. Sign up early so you can check details and practise before April 2027.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “Hundreds of thousands of sole traders and landlords are already successfully using Making Tax Digital and now it’s time for the next group to get ready. Signing up now means you can prepare and familiarise yourself with the process before it becomes mandatory next April.”
Drivers who are unsure should speak to their accountant or tax agent — or use HMRC’s GOV.UK guidance — rather than wait until the deadline.