Self Assessment Return and Making Tax Digital: The 2026 Update for Drivers
Your self assessment return for 2025/26 is still a normal Self Assessment return, due online by 31 January 2027, for most drivers. Only drivers who joined Making Tax Digital for 2026/27 add quarterly updates, with their 2026/27 return following in January 2028.
Published 9 November 2026 · Updated 9 November 2026
Your self assessment return for 2025/26 is still a normal Self Assessment return, due online by 31 January 2027, for most drivers. The change is for drivers who joined Making Tax Digital (MTD) for Income Tax from 6 April 2026: they send quarterly updates through software during 2026/27, and their 2026/27 return follows in January 2028.
That creates a transition year, and it confuses many drivers who read that Self Assessment is being replaced. This guide shows which self assessment return you are filing, and when, based on your situation. It ends with a dated 12-month calendar you can copy into your phone.
We cover the 2025/26 return, the quarterly updates, voluntary sign-up and mixed income. For the full comparison of the two systems, see our guide to Self Assessment versus Making Tax Digital. For the new tax year rates, see what changed in Self Assessment for 2026/27.
Key takeaways
- The 2025/26 self assessment return is due online by 31 January 2027, for MTD and non-MTD drivers alike.
- Drivers with qualifying income above £50,000 on their 2024/25 return started MTD on 6 April 2026 and send quarterly updates during 2026/27.
- The threshold falls to £30,000 from April 2027 and £20,000 from April 2028, so check which year's figures HMRC will use for you.
- Your situation decides the route: below the threshold, above it, voluntary sign-up or mixed income each give a different calendar.
- Late quarterly updates carry no penalty points in 2026/27, but a late return and late payment still do.
What is a Self Assessment return?
A Self Assessment return is the annual form on which you tell HMRC (His Majesty's Revenue and Customs) about your income, expenses and gains for a tax year running 6 April to 5 April. HMRC then works out your Income Tax and Class 4 National Insurance. Most self-employed drivers file one every year.
Is the 2025/26 self assessment return different because of Making Tax Digital?
No. The 2025/26 return, covering 6 April 2025 to 5 April 2026, is filed the usual way and is due online by 31 January 2027. MTD does not change that return or its deadline. The quarterly updates only start with the 2026/27 tax year, and only for drivers in scope.
According to HMRC's Self Assessment deadlines page, the 2025/26 online deadline is 11:59pm on 31 January 2027, and the tax you owe is due the same day. The paper deadline was 31 October 2026, so if you missed that, online is your route. You can file online at any point from 6 April 2026.
HMRC's own MTD timeline agrees. It shows the 2025/26 return as filed the usual way on 31 January 2027, and the 2026/27 return as submitted from MTD software on 31 January 2028, according to the HMRC Making Tax Digital dates page.
What is the transition year in plain English?
The transition year is 2026/27 for drivers already in MTD. It is the first tax year when you send quarterly updates, while you are also still finishing the older 2025/26 return. You therefore run two systems side by side until the 2025/26 return is filed.
Think of it as two separate piles of paperwork. Pile one is 2025/26: the usual annual return, filed by 31 January 2027. Pile two is 2026/27: digital records all year, four updates, then the return in January 2028. Keeping the piles apart stops a lot of mistakes.
Many drivers also confuse the date they sign up with the year the rules bite. Signing up in, say, December 2026 does not change the 2025/26 return. It decides how you report 2026/27. HMRC says that from September 2026 it started signing up people who need MTD for 2026/27 and have not done it themselves.
Which return am I filing, and when?
It depends on your qualifying income, which is your self-employment and property income before expenses, taken from your earlier Self Assessment return. The table below sets out each common situation. Use it as a starting point, then confirm your own position on GOV.UK or with an accountant.
| Your situation | 2025/26 return (due 31 January 2027) | What you do during 2026/27 | 2026/27 return |
|---|---|---|---|
| Qualifying income of £30,000 or less on the return HMRC checks, not signed up | Normal Self Assessment return | No quarterly updates required | Normal return due 31 January 2028; check whether the £20,000 rule from April 2028 reaches you |
| Above £50,000 on the 2024/25 return | Normal Self Assessment return, filed as usual | Digital records and four quarterly updates (7 August 2026, 7 November 2026, 7 February 2027, 7 May 2027 for standard periods) | Submitted through MTD software by 31 January 2028 |
| Between £30,000 and £50,000 on the 2025/26 return | Normal Self Assessment return; this is the return HMRC checks for April 2027 | Nothing mandatory yet; consider keeping digital records early | MTD applies from 6 April 2027, so quarterly updates begin with 2027/28; check GOV.UK for how your 2026/27 return is filed |
| Below the threshold but signed up voluntarily | Normal Self Assessment return | Quarterly updates; late ones carry no penalty | Submitted through MTD software by 31 January 2028 |
| Mixed income (driving plus rental income) | Normal Self Assessment return reporting both | Add both income types together to test the threshold | Follows whichever rule your combined figure triggers |
The £50,000 row uses the 2024/25 return because HMRC's collection page says the rule applies where its records show qualifying income above £50,000 in that year. The £30,000 and £20,000 rows rely on later returns: 2025/26 for April 2027 and 2026/27 for April 2028. If HMRC tells you something different, trust its letter and check GOV.UK.
Does a driver below £50,000 have to do anything about MTD in 2026/27?
No, not if your qualifying income was £50,000 or less on the return HMRC checks. You file the usual self assessment return for 2025/26 and again for 2026/27. You should still watch the later thresholds, because many full-time drivers sit between £20,000 and £50,000.
Working out where you sit now saves a rush later. Total your driving income before expenses for 2025/26, add any rental income, and compare it with £30,000. Our Making Tax Digital service page explains how we check this for clients before April 2027.
What counts as qualifying income for a driver with mixed income?
Qualifying income is your gross self-employment and property income, before expenses. Employment pay, dividends, pensions and your share of a partnership's profit do not count. If you drive and also let out a property, the two figures are added together to test the threshold.
HMRC's qualifying income guidance gives the example of £25,000 rental income plus £27,000 self-employment income, which makes £52,000 of qualifying income. For joint property, only your share counts. A common trap for mixed earners is thinking a PAYE job pushes them over; it does not.
Who joins MTD voluntarily, and should I?
Anyone below the threshold can volunteer, provided they are registered for Self Assessment and have filed a return in the last two years. Volunteering suits drivers who want a running tax estimate or who expect to cross the threshold soon. It is optional, so weigh the extra admin before you sign up.
The sign-up guidance on GOV.UK says you can volunteer for the current or next tax year. If you join part-way through, you must send any missed updates for the year so far. HMRC's quarterly update guidance says late updates from volunteers do not attract penalties, although a late return still earns penalty points.
Voluntary sign-up never changes the 2025/26 return. A driver who volunteers in December 2026 still files that return the usual way by 31 January 2027, then reports 2026/27 through MTD software.
How do the quarterly updates fit around the 2025/26 return?
They run in parallel. The quarterly updates for 2026/27 are summaries of income and expenses, not tax returns, and they do not replace your 2025/26 return. You can send a quarterly update and still owe a January return for the previous year, so your diary needs both.
According to HMRC's quarterly update guidance, standard periods end on 5 July, 5 October, 5 January and 5 April, with deadlines of 7 August, 7 November, 7 February and 7 May. Each update shows totals so far for the tax year. You must send one even if you had no income in the period.
The same guidance says no penalty points apply to late quarterly updates in 2026/27, but updates must be sent before you can submit your tax return. After 2026/27, a late update earns a point, and four points trigger a £200 penalty. For a wider look at the deadlines and common questions, see our Making Tax Digital FAQ.
How do I move from the old return to MTD step by step?
Finish the 2025/26 self assessment return first, then switch your 2026/27 records to MTD software. The sequence below keeps the two years separate and works in the order HMRC expects. Follow every step, and keep the final one even if you are only a voluntary joiner.
- Add up your 2025/26 driving and property income before expenses, and note whether it is above £30,000 or £50,000.
- Check your HMRC online account to see whether you are already signed up, or whether HMRC has signed you up since September 2026.
- File the 2025/26 self assessment return online before 31 January 2027, ideally in December so you have time to arrange payment.
- Pay the 2025/26 balance by 31 January 2027, plus any payment on account HMRC shows is due (check your online account).
- Choose software that works with MTD, authorise it using your Government Gateway details, and start recording 2026/27 income and costs in it.
- Send each quarterly update by its 7th-of-the-month deadline, then keep the year-end figures ready for the January 2028 submission.
If you are choosing software, our guide to Self Assessment software and Making Tax Digital explains what to look for without recommending a product.
What is the dated 12-month calendar from November 2026?
The calendar below runs from November 2026 to October 2027 and mixes the old and new deadlines. Dates come from GOV.UK pages checked on 9 November 2026. Mark the ones that apply to your row of the earlier table, and check GOV.UK if HMRC writes with different dates.
| Date | What happens | Who it affects |
|---|---|---|
| 7 November 2026 | Second quarterly update due (6 April to 5 October 2026) | Drivers in MTD for 2026/27; if you have missed it, send it now |
| 30 December 2026 | Online return deadline if you want tax collected through your tax code (check GOV.UK for eligibility) | Anyone filing 2025/26 who wants this option |
| 31 January 2027 | 2025/26 online return and balancing payment due | Every driver filing Self Assessment |
| 7 February 2027 | Third quarterly update due (to 5 January 2027) | MTD drivers |
| 5 April 2027 | 2026/27 tax year ends | Everyone |
| 6 April 2027 | New tax year; MTD starts for qualifying income above £30,000 on the 2025/26 return | The £30,000 to £50,000 group |
| 7 May 2027 | Fourth quarterly update due (to 5 April 2027) | MTD drivers |
| 31 July 2027 | Second payment on account date (confirm the amount in your HMRC account) | Drivers making payments on account |
| 7 August 2027 | First 2027/28 quarterly update due (to 5 July 2027) | Everyone in MTD by then |
| 5 October 2027 | Deadline to register for Self Assessment if you newly need to file (check GOV.UK for the 2026/27 date) | New or newly self-employed drivers |
The next deadline after the calendar closes is 7 November 2027 for the second 2027/28 update, followed by the 2026/27 return on 31 January 2028 for drivers submitting through MTD software.
Illustrative example: two drivers, one tax year, two routes
This illustrative example uses invented drivers and figures to show why people with similar jobs can face different calendars. It is not a forecast of your own tax. The figures are made up.
- Driver A earned £58,000 of driving turnover in 2024/25. HMRC's records put them above £50,000, so MTD applied from 6 April 2026. They file the 2025/26 return by 31 January 2027, send four 2026/27 updates, and file the 2026/27 return in January 2028.
- Driver B earned £36,000 of driving turnover in 2025/26 and £3,000 of rental income, making £39,000 of qualifying income. They file the 2025/26 return as usual, and MTD applies to them from 6 April 2027. Their first quarterly update falls due 7 August 2027.
- Driver C earned £24,000, is below every threshold announced for April 2027, and signed up voluntarily. They file the usual 2025/26 return, then send quarterly updates for 2026/27 with no penalty points if one is late.
Notice that Driver A and Driver C both send 2026/27 updates, but only Driver A has to. Driver B does nothing different until April 2027, yet should start digital records early so the 2027/28 year runs smoothly.
What happens if I miss the 2025/26 return or a quarterly update?
Missing the 2025/26 return deadline earns a late filing penalty, and late payment earns a separate charge. A missed quarterly update in 2026/27 earns no penalty point. Do not treat that grace as a reason to delay, because your 2026/27 return cannot go in until the updates are sent.
The Making Tax Digital guidance on submitting your return says a missed deadline earns a late submission penalty point, and that MTD does not change how or when you pay. Check GOV.UK for the current penalty amounts, because they have changed before. If HMRC disputes a penalty, professional representation is sensible.
Common mistakes and the penalty each triggers
- Believing MTD replaces the 2025/26 return, then not filing it by 31 January 2027: this triggers a late filing penalty, and the tax is still due.
- Assuming one PAYE job or a pension lifts you into MTD: it does not, because only self-employment and property income count.
- Using profit instead of turnover to test the threshold: this can leave you in MTD when you thought you were out, or the reverse. Qualifying income is before expenses.
- Skipping a quarterly update in 2027/28: from year two, a late update earns a penalty point, and four points trigger a £200 penalty.
- Ignoring an HMRC sign-up letter: HMRC can sign you up using information it holds, which may be out of date, so tell HMRC if your circumstances changed.
Key terms
- MTD: Making Tax Digital, HMRC's system of digital records and quarterly updates.
- Qualifying income: self-employment and property income before expenses.
- Quarterly update: a summary of income and expenses sent through MTD software.
- Payment on account: advance payments towards your next Self Assessment bill.
- Government Gateway: the login used to access your HMRC online account.
How UK Driver Accountants helps
UK Driver Accountants is an accountancy for drivers only, independent of any ride-hailing app, with fixed fees from £20 a month. We work out which route you are on, file the 2025/26 return, and handle 2026/27 updates for MTD clients. See our Making Tax Digital service, our personal tax service and pricing.
To estimate what you might owe before you file, try our tax calculator. For wider planning dates, see key tax dates for ride-hailing drivers, and for a different angle on quarterly deadlines see our 2026 update for personal tax clients.
Conclusion
The transition year is simple once you split it into two piles: the 2025/26 return, filed the usual way by 31 January 2027, and the 2026/27 MTD route if you are in scope. Use the table to find your row, the calendar to fix your dates, and check GOV.UK for any change.
If you want us to confirm your route and handle the filing, contact UK Driver Accountants and we will reply with a fixed quote.
This article is general information and is not personal tax advice. Speak to a qualified accountant about your own circumstances, and consider professional representation if HMRC disputes a penalty or opens an enquiry.
Last reviewed 9 November 2026 by the UK Driver Accountants tax team
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