Three HMRC rule changes are reshaping tax compliance for UK taxi and private hire drivers and operators.
Insurd summarises Making Tax Digital for Income Tax: eligible sole traders must keep digital records and file quarterly updates — from 6 April 2026 if 2024–25 qualifying income exceeded £50,000, then lower thresholds in 2027 and 2028. Missing deadlines can bring penalties of up to £3,000 per quarter. Separately, renewing a taxi or PHV licence still needs a personal GOV.UK tax check and 9-character code (valid 120 days). From 2 January 2026, PHV operators can no longer use the Tour Operators’ Margin Scheme for standard journeys, so 20% VAT applies to eligible operator fares; individual drivers supplying passengers directly are not the target of that change.