If you are a self-employed taxi driver, you must file a self assessment tax return with HMRC every year. There are no exceptions. This guide covers everything you need to know about self assessment for taxi drivers: how to register, key deadlines, what income and expenses to report, how payments on account work, and the Making Tax Digital changes.
Do Taxi Drivers Need to File Self Assessment?
Yes. If you are self-employed as a taxi or private hire driver, you must register for self assessment and file a return every year, whether you own your vehicle, rent from a fleet operator, work through platforms, or do a combination.
How to Register for Self Assessment
Register online through the HMRC website by 5 October following the end of the tax year in which you started driving. HMRC will issue you a Unique Taxpayer Reference (UTR).
Self Assessment Deadlines
5 October: registration deadline for new self-employed drivers. 31 January: online tax return AND payment deadline. 31 July: second payment on account. Late filing triggers an immediate GBP 100 penalty, escalating with daily penalties after three months.
What Taxi Drivers Need to Report
All income from driving work, including cash and card fares, tips, airport runs, platform earnings. HMRC cross-references your declared earnings with licensing status, typical local earnings, and bank deposits.
Understanding Payments on Account
If your tax bill exceeds GBP 1,000, HMRC requires advance payments towards next year's bill: 50% by 31 January and 50% by 31 July. In your second year this means paying your full bill plus the first payment on account.
Making Tax Digital: What's Changing
From April 2026, self-employed individuals earning over GBP 50,000 must keep digital records and submit quarterly updates to HMRC. Lower thresholds follow in subsequent phases.