Hmrc warns uk households who earn over £50k will be 'first hit' by rule change

CABBIES EARNING OVER £50,000 ANNUALLY WILL BE AMONG THE FIRST IN THE TRADE TO BE AFFECTED BY NEW DIGITAL TAX REPORTING RULES. 10:20, 04 Jun 2025 HMRC has started to issue letters to taxi

drivers and other self-employed workers who may be impacted by the major new Making Tax Digital (MTD) shake-up. Cabbies earning over £50,000 annually will be among the first in the trade to

be affected by new digital tax reporting rules. The rules start from 6 April 2026, with cabbies being sent a May letter from HMRC warning them. Under the shake-up qualifying self-employed

drivers will need to keep digital records and send quarterly updates of income and expenses using MTD-compatible software. It marks a shift away from the once-a-year self-assessment model

many in the taxi trade have used for decades under the Labour Party government. READ MORE ALL THE PARTS OF ENGLAND SET FOR 'AT LEAST 30C' NEXT WEEK IN UK HEATWAVE Around 780,000

self-employed individuals and landlords will be brought into MTD for Income Tax from April 2026. A further 970,000 will follow from April 2027 when the threshold lowers to £30,000. Article

continues below By April 2028, those earning more than £20,000 will also be included. Many more taxi drivers will therefore be affected over the next three years. Labour Party MP James

Murray MP, Exchequer Secretary to the Treasury, said: "MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that supports economic growth.

"By modernising how people manage their tax, we’re helping businesses work more efficiently and productively while ensuring everyone pays their fair share. Article continues below

"This is a crucial step in this government’s decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth." Craig Ogilvie, HMRC’s Director of

Making Tax Digital, said: "MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997. It will make it easier for self-employed

people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax. "By signing up to our testing programme now, self-employed people and

landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year."