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NewsHMRC warning to all Brits earning over £50,000 as 'tipping point' reachedThe new rule change is the biggest to the self-assessment regime since it was introduced in 1997 under the Labour

governmenthuddersfieldexaminerBookmarkShareCommentsNewsByJames RodgerContent EditorTom KershawContent Editor13:49, 4 JUN 2025BookmarkThe new rule change is the biggest to the

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HMRC has started dispatching letters to taxi drivers and other self-employed individuals who may be impacted by the significant Making Tax Digital (MTD) overhaul. Taxi drivers with annual

earnings exceeding £50,000 will be among the first in the industry to face the new digital tax reporting regulations.

The rules come into effect from April 6, 2026, and cabbies are being alerted by a May letter from HMRC. As part of the changes, qualifying self-employed drivers will be required to maintain

digital records and submit quarterly updates on income and expenses via MTD-compatible software.

This represents a departure from the once-a-year self-assessment system many taxi professionals have relied on for years during the Labour Party's governance.

Approximately 780,000 self-employed persons and landlords will enter the MTD for Income Tax scheme starting April 2026. An additional 970,000 will join from April 2027 as the threshold drops

to £30,000.

By April 2028, those earning above £20,000 will also be encompassed. Consequently, a growing number of taxi drivers will be affected in the coming three years, reports Birmingham Live.

Labour Party MP James Murray, Exchequer Secretary to the Treasury, commented: "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.

"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, stated: "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."