Making Tax Digital for Taxis
Cash jobs, app fares, fuel, licensing and a vehicle that is also your livelihood — taxi tax is its own thing. We are MTD-ready accountants handling quarterly updates, expenses and HMRC for self-employed taxi and private hire drivers across the UK, on fixed monthly fees.
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The Tax Digital Team
Taxis Specialists
We speak taxi.
You did not get your badge to spend evenings reconciling fuel receipts and app statements. We understand how cab work actually runs — variable cash takings, Uber and Bolt commissions, plate and licence fees, and a vehicle that is both a business cost and a personal car. We turn all of it into clean digital records and quarterly MTD submissions, so you can keep driving.
Direct WhatsApp Access
Quarterly Zoom Reviews
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The MTD Checklist
Tick the boxes that apply to your business.
MTD-ready for Taxis: a quick compliance check
Not Yet Compliant
Select items from the list to see your status.
Why Taxis Switch to TaxDigital
Taxi work is fast-paced. Your accounting should be calm and predictable. Here is what we focus on when taxi drivers and taxi firms move to Tax Digital.
| Feature | Traditional Accountant | TaxDigital for Taxis |
|---|---|---|
| Record Keeping | Paper receipts & spreadsheets | 100% Paperless via App |
| Response Time | Days or weeks | Same Day / Instant Chat |
| Pricing Model | Hourly billing + Year-end bill | Fixed Monthly Subscription |
| Tax Visibility | Surprise bill once a year | Real-time Liability View |
| Industry Knowledge | Generalist (Jack of all trades) | Specialist Taxis Team |
| Software | Desktop / None | Xero / QuickBooks / FreeAgent |
MTD is for Sole Traders — Here's Yours
Making Tax Digital only applies to sole traders and landlords. We've built a dedicated package specifically for you — no fluff, no overpaying for things you don't need.
Sole Traders — Sole Traders
Why MTD Matters for You
Quarterly Digital Reporting
HMRC now requires quarterly submissions via MTD-compatible software — we handle all of them for you.
Penalty-Free Compliance
Missing MTD deadlines carries real fines. We keep you compliant so you never have to worry.
Tax-Efficiency Built In
We don't just file — we find every legitimate deduction and reduce your bill, year after year.
Packages
Choose a package based on how you work today. We can always adjust as your taxi work changes—more platforms, more vehicles, VAT registration, or moving into a limited company.
Detailed Plan Comparison
See exactly what’s included in each plan — no hidden fees, no surprises.
| Features |
Sole Traders
£69+VAT/per month
|
Landlords
£39+VAT/per month
|
|---|---|---|
| MTD Compliance | ||
| Quarterly MTD Submissions | ||
| HMRC Digital Account Setup | ||
| End-of-Year Final Declaration | ||
| Accountancy Services | ||
| Self Assessment Tax Return | ||
| Year-end Accounts | — | |
| VAT Returns | — | |
| Support & Advice | ||
| Support Channel | Email Only | Email & Phone |
| Dedicated Accountant | — | |
| Tax Planning Review | — | Annual |
| Software | ||
| Bookkeeping Software | Basic | Standard |
| Receipt Scanning | ||
| Real-time Tax Liability View | ||
| Get started | Choose Plan | Choose Plan |
* Prices exclude VAT. Terms and conditions apply.
Services for Taxis
How we saved CityLine Taxis (example)...
CityLine Taxis had multiple drivers, mixed payment methods, and platform statements that did not match bank deposits at first glance. The owner was spending weekends trying to reconcile jobs and fees, and VAT was becoming a concern as turnover grew.
We set up MTD-compatible accounting software, created a simple weekly process for importing platform summaries, and separated key categories like fuel, repairs, insurance, and driver costs. We also put a VAT-threshold monitoring report in place so there were no surprises.
Within the first two months, the bookkeeping was up to date, the owner had a clear picture of profit, and the year-end accounts were straightforward.
Ready to simplify your tax?
Join hundreds of other taxis who have made the switch to digital.
"i'm a web developer - they are very good and charge a good monthly fee"
Taylor
Verified Client"I’m an online tutor who travels often, so the new Making Tax Digital rules felt overwhelming. After some research, I came across TaxDigital and got…"
Shasha Xie
Verified Client"We use Tracey & Karl for Lex Plumbing and couldn’t be happier. As a busy plumbing business, we need accountants who are reliable, proactive, and…"
Alex Aldous
Verified ClientTaxi & private hire tax — your questions answered
Have more questions?
Speak to one of our taxis experts directly.
The Taxis Handbook
Everything you need to know about keeping your taxis business compliant and profitable.
Making Tax Digital for Income Tax (MTD for ITSA) is HMRC moving self-employed tax reporting online. From 6 April 2026 it applies to sole traders with qualifying income over £50,000 — which covers most full-time taxi and private hire drivers. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028.
In practice it means three things: keep your income and expenses as digital records, send HMRC a short quarterly update from MTD-compatible software, and confirm your figures in a final declaration after the tax year. Your “qualifying income” is your gross takings before expenses, so it is easy to cross the threshold even on modest profit. We work out whether MTD applies to you and get you set up well before it bites.
Claiming the right costs is where most drivers save the most tax. Typical allowable expenses include:
- Fuel and the business share of your vehicle running costs
- Hire & reward / taxi insurance and road tax
- Repairs, servicing, MOT, tyres and valeting
- Taxi or private hire driver and vehicle licences, plate and application fees
- DBS checks and any required medicals
- Radio/circuit subscriptions and app commissions (Uber, Bolt, Free Now)
- The business proportion of your mobile phone
- Accountancy fees and business bank charges
You must exclude private use — personal mileage and any non-business journeys. We make sure every legitimate cost is captured and the private-use split is defensible if HMRC ever asks.
There are two ways to claim for your vehicle, and the right one depends on how you drive:
Simplified mileage — 45p per business mile for the first 10,000 miles, then 25p. It bundles fuel, servicing, insurance and depreciation into one simple rate. Great for lower-mileage drivers or anyone who wants minimal admin.
Actual running costs — claim the business proportion of all real costs plus capital allowances on the vehicle itself. This usually wins for high-mileage drivers and for more expensive or electric vehicles.
Important: once you claim capital allowances on a vehicle you cannot switch it to the mileage method. We compare both for your numbers before you commit.
Under MTD for Income Tax the standard quarterly periods and update deadlines are:
- 6 Apr – 5 Jul — update due 7 August
- 6 Jul – 5 Oct — update due 7 November
- 6 Oct – 5 Jan — update due 7 February
- 6 Jan – 5 Apr — update due 7 May
Your final declaration and the balancing tax payment are due by 31 January after the tax year, with payments on account on 31 January and 31 July where they apply. We diarise the lot and file for you, so a busy week behind the wheel never turns into a missed deadline.
MTD means using HMRC-recognised software rather than a shoebox of receipts or a spreadsheet alone. The big three — Xero, QuickBooks and FreeAgent — are all MTD-ready, and each has a mobile app so you can snap a fuel receipt or log a cash fare between jobs. We will recommend the best fit for how you work, set it up, connect it to HMRC, and show you the two-minute weekly routine that keeps you compliant.