Making Tax Digital for Ride-Hailing Drivers: 2026 Update for Self Assessment Clients

Making Tax Digital for ride-hailing drivers has been live since 6 April 2026 for self-employed drivers with qualifying income above £50,000, and the first quarterly deadline came and went on 7 August 2026. If you are in that group, your second update is due by 7 November 2026, three days after this article was written. HMRC (His Majesty's Revenue and Customs) has said it will not issue penalty points for late quarterly updates in 2026/27, but that is not the same as no consequences.

This is the 2026 update for our Self Assessment clients. We cover what has actually happened since April, a countdown timeline for the next deadline, and a worked example of one driver's first two updates. We link to our other guides on common questions, VAT and limited companies rather than repeat them.

Key takeaways

• The second quarterly update for most drivers is due by 7 November 2026, then 7 February 2027 and 7 May 2027.
• HMRC will not apply penalty points for late quarterly updates in 2026/27, but late tax returns and late payments are still penalised.
• From the following tax year, each missed update earns a penalty point, and four points means a £200 penalty (check GOV.UK for the detail).
• The threshold falls to £30,000 in April 2027 and £20,000 in April 2028, so more drivers join each year.
• Your 2025/26 return is still filed the old way by 31 January 2027, and quarterly updates do not change when you pay.

What is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax is HMRC's system that makes self-employed people keep digital records and send four short income and expense summaries a year, plus a final return, through compatible software. It started on 6 April 2026 for qualifying income above £50,000. It changes how you report, not how much tax you owe.

What has happened since 6 April 2026?

Since April, the first wave of about 864,000 sole traders and landlords has had to keep digital records and send a first update by 7 August 2026, according to HMRC's own news release. HMRC also confirmed there are no penalty points for late quarterly updates in 2026/27. Late returns and late payments are unchanged.

HMRC describes the submission itself as quick once software is connected, and the sign-up and authorisation steps must be finished before you can send anything. In our experience the hard part is the record keeping rather than the submission. Drivers who log income and costs weekly can send an update in minutes, while rebuilding three months from memory is slow and error-prone.

We have not published figures on how many drivers filed late, because we have no verified data and will not guess. Some commentators have quoted a share of missed first updates, but we could not trace that to HMRC, so treat any such number with caution. If you missed 7 August, send the update now. HMRC's guidance on sending quarterly updates says updates can be sent after the period ends, and each one is cumulative.

When are the remaining quarterly deadlines for 2026/27?

According to HMRC's guidance on sending quarterly updates, the deadlines are 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. Standard periods run from 6 April to 5 July, 5 October, 5 January and 5 April. Calendar periods end on 30 June, 30 September, 31 December and 31 March.

Remember that 7 November 2026 is a Saturday. We do not rely on any weekend grace rule, and neither should you. Aim to send the update by Friday 6 November, and check GOV.UK if you are unsure how weekends are treated.

How do penalty points work for quarterly updates?

For 2026/27, nothing changes for late quarterly updates, because HMRC will not apply penalty points. From later years, GOV.UK says each missed update earns one point and reaching four points triggers a £200 penalty. Late tax returns earn points too, so the system still bites.

The detail that matters most is what has not changed. Late payment penalties and late return penalties still apply in 2026/27 as before. HMRC's guidance also says you must send all four updates before you submit your return, so a missed update is a problem even without a point attached.

How long points last before they expire, and what happens beyond four points, are details we ask you to confirm on GOV.UK rather than take from us. If HMRC has already sent you a penalty notice, speak to a qualified adviser before you reply or appeal.

Which software and records do you actually need?

You need HMRC-recognised software that keeps digital records and sends quarterly updates to HMRC. A spreadsheet on its own does not qualify unless it is linked to compatible software. HMRC publishes a list of products on GOV.UK, and you can pick any product on it.

Your records need to show income and expenses by category, using the same headings as the Self Assessment return. HMRC receives only totals, not individual receipts. You also still send an update when you had no income or expenses in a period, according to the GOV.UK guidance.

Our separate guide to Self Assessment software and Making Tax Digital explains how to choose a product, so we will not repeat it here. HMRC's own list of compatible software is the place to check that a product is recognised. For help setting up a clean record system, see our bookkeeping service.

Who can get an exemption from Making Tax Digital?

HMRC can exempt people for whom it is not reasonable or practical to keep digital records or send them, for example because of disability, age, remote location or religious beliefs. Each case is judged on its own facts, and being busy or disliking software is not enough. Check the current rules and how to apply on GOV.UK.

If you apply, keep applying separate from your filing duties. Do not assume an exemption is granted until HMRC confirms it in writing, and continue to keep records HMRC can inspect. We recommend professional help if your case is complex.

What to do before the next quarterly deadline

Work backwards from the deadline. The table below is a timeline we built for drivers who are mid-year and want a calm route to 7 November, or to the next deadline on 7 February 2027. Adjust the dates if you use calendar periods or have a different filing pattern.

How do you send a quarterly update step by step?

You send a quarterly update by checking your records are complete, opening your compatible software, reviewing the category totals for the period, submitting the update and saving the confirmation. The steps below show the order we use with clients so nothing is missed.

1. Check you are signed up to Making Tax Digital for Income Tax and authorised in your software.
2. Record every payment and expense up to the end of the update period.
3. Check that income is gross and that fees, fuel, insurance and other costs sit in the right categories.
4. Open the quarterly update in your software and review the year-to-date totals.
5. Submit the update before the deadline and save the confirmation.
6. Read the tax estimate, set money aside and note anything to fix in the next update.

Illustrative example: a full-time driver's first two updates

This illustrative example uses an invented driver we will call Sam. All figures are made up to show how the process works, and they are not a forecast or advice. Sam's 2024/25 return showed £58,000 of self-employed income, so Sam entered Making Tax Digital on 6 April 2026.

Sam picks standard periods and sends the first update on 20 August, after the 7 August deadline. HMRC applies no penalty point, but Sam now knows to prepare earlier. Sam keeps weekly records and sends the second update with time to spare.

Notice that Sam enters the whole £1,100 insurance in Quarter 1, so it does not change in Quarter 2. Updates are cumulative, so Sam never adds the two quarters together. The software shows an estimated tax bill after each update, which Sam uses to decide how much to set aside.

Sam also learns that the 2025/26 return, due by 31 January 2027, is filed the normal way. The 2026/27 return is the first filed through Making Tax Digital, and GOV.UK gives its deadline as 31 January 2028. Sam works out the cash needed with our tax calculator.

Does your 31 January Self Assessment deadline still matter?

Yes. Your 2025/26 return is still due by 31 January 2027, and any tax you owe is due then too. Quarterly updates are summaries, not payments. Making Tax Digital changes reporting, and for 2026/27 the return and payment deadline is 31 January 2028 according to GOV.UK.

That gap is where drivers get caught. Two tax years run side by side, one the old way and one the new way. Our guide to Self Assessment versus Making Tax Digital explains the difference, and our key tax dates article keeps the diary in one place.

Who joins next, and what does that mean for you?

The qualifying income threshold falls to £30,000 from April 2027 and £20,000 from April 2028, according to HMRC's guidance. GOV.UK says your start date depends on the income on an earlier tax return. If you earn below £50,000 today, you should plan for the lower thresholds now.

Start dates by qualifying income

Qualifying income is gross income from self-employment and property, before expenses. A part-time driver with a day job can therefore be in scope even if profit is low. Our questions-answered guide covers how the threshold is counted, so check it if you are unsure.

Common mistakes and the penalty each can trigger

• Missing a quarterly update in 2026/27: no penalty point this year, but you cannot file your return until all updates are in, so a delay can still push your return late.
• Filing the 2025/26 return after 31 January 2027: a late filing penalty applies as normal, and interest runs on unpaid tax.
• Paying late: late payment penalties and interest apply, whatever your quarterly updates show.
• Entering net rather than gross income: your updates understate income, which can lead to an inaccurate return and, in serious cases, an HMRC enquiry.
• Treating the tax estimate as final: it can omit other income, so do not rely on it to settle your bill.
• Changing update periods mid-year: GOV.UK says you cannot change them after you send a quarterly update.

Key terms

• MTD: Making Tax Digital, HMRC's digital reporting system.
• Qualifying income: gross income from self-employment and property before expenses.
• Quarterly update: a cumulative summary of income and expenses sent to HMRC.
• Update period: the months an update covers, either standard (from 6 April) or calendar (from 1 April).
• Penalty point: a mark HMRC records for a late submission; enough points trigger a financial penalty.
• Digitally excluded: unable to use digital records for reasons HMRC accepts.

How UK Driver Accountants helps

UK Driver Accountants works with drivers only, on fixed fees from £20 a month, and we are independent of any ride-hailing app. For Making Tax Digital, we check that you are signed up, set up compatible software, keep your records tidy and send each update on time. Our Making Tax Digital service and personal tax service cover the quarterly updates and your Self Assessment return together.

You can see the costs on our pricing page. If an HMRC letter or penalty notice has arrived, tell us before you reply.

Conclusion

Seven months in, Making Tax Digital for ride-hailing drivers rewards anyone who keeps weekly records and files calmly before the deadline. Your next date is 7 November 2026, then 7 February and 7 May 2027. If you want a professional to handle it, get in touch with us and we will confirm your start date and set you up.

Last reviewed 4 November 2026 by the UK Driver Accountants tax team.

This article is general information and is not personal tax advice. Rules and dates can change, so confirm them on GOV.UK and speak to a qualified accountant about your own position. If HMRC raises a dispute or penalty, we recommend professional representation. HMRC's news release on the first quarterly update and the guidance on using Making Tax Digital for the first time set out the official position, and HMRC's Self Assessment deadlines page covers the 31 January dates.