Quick answer
Self-employed taxi and private hire drivers count their total fares, before commission, fuel and vehicle costs, towards the MTD threshold. Many full-time drivers are over £30,000, which means MTD from 6 April 2027 based on the 2025/26 return.
Key facts
Total fares count towards the threshold, before costs
Licence renewals need a tax check
Black cabs can’t use simplified mileage
Record app commission and operator fees as expenses
What counts as income
All fares you’re paid, whether in cash, by card or through an app, plus tips. If an app or operator deducts commission before paying you, your income is the full fare, and the commission is an expense.
When MTD applies
Start date | Qualifying income over | Based on your tax return for |
|---|---|---|
6 April 2026 | £50,000 | 2024/25 |
6 April 2027 | £30,000 | 2025/26 |
6 April 2028 | £20,000 | 2026/27 |
Vehicle costs
Most drivers can claim either actual running costs or HMRC’s flat mileage rate (55p a mile for the first 10,000 miles in 2026/27, then 25p). The flat rate can’t be used for vehicles HMRC treats as commercial, which includes black cabs, so hackney carriage drivers claim actual costs instead.
Licence tax check
To renew a taxi or private hire driver licence, you must complete a tax check with HMRC confirming you’re registered for tax. MTD doesn’t change this, but keeping your records current makes it straightforward.
Costs drivers commonly record
Fuel, insurance, servicing, repairs and road tax (if not using flat mileage)
Vehicle and driver licence fees
Operator, radio or app commission
Business share of your phone
Vehicle hire or rental charges
Tips for quarterly updates
Cash fares are easy to miss. Note daily takings each shift, then record them in your software. See digital records for MTD.
Use the MTD checker to see your own start date.