Self-employed Uber and taxi drivers will soon face a major shift in reporting their income to HMRC, with new quarterly reporting rules set to take effect in April 2026.
DM News has been contacted by Andrew Neary Accountants in Liverpool, who have highlighted the upcoming change that will significantly impact those earning over £50,000 per year (Approximately £961)
Under the new rules, if a self-employed driver’s turnover exceeds £50,000 between 6th April 2024 and 5th April 2025, they will be required to submit their accounts every three months rather than the usual annual tax return.
What Does This Mean for Drivers?
- More Frequent Tax Bills – Instead of one tax bill per year, affected drivers could face four separate tax payments.
- Increased Accounting Costs – With more forms to complete, self-employed drivers may need to pay extra for accountants to manage their records and submissions.
- Administrative Burden – Quarterly reporting means drivers must keep on top of their finances throughout the year to avoid penalties.
When Does This Start?
The changes will officially come into effect from April 2026, meaning drivers will need to ensure their records are in order well in advance.
Andrew Neary Accountants are urging all self-employed drivers, particularly those in the gig economy, to seek professional advice and prepare for the transition as soon as possible.
Industry Concerns
Many in the taxi and private hire industry fear that the added financial and administrative pressures could make it harder for self-employed drivers to manage their businesses. Some also worry that higher accountant fees and more frequent tax payments could put additional strain on their cash flow.
What Should Drivers Do Now?
- Check your turnover between April 2024 and April 2025 to see if you’ll be affected.
- Speak to an accountant to understand how the changes will impact you.
- Keep accurate records to ensure a smooth transition to quarterly reporting.
For more updates on this developing story, stay tuned to DM News.
