Making Tax Digital (MTD) for Income Tax is one of the biggest changes to the UK tax system in decades. It will change how self-employed people record their income and report taxes to HMRC.
If you're a self-employed gig driver — working with Uber, Bolt, Deliveroo, Amazon Flex or similar platforms — this change will affect how you manage your finances.
When Does Making Tax Digital Start?
MTD for Income Tax will be introduced in stages.
If your annual self-employment income is:
- Over £50,000 → MTD applies from April 2026
- Over £30,000 → MTD applies from April 2027
If you earn less than £30,000, the government may expand the rules later, but no date has been confirmed yet.
What Actually Changes?
Today, most self-employed people submit one Self Assessment tax return per year.
Under Making Tax Digital, you'll need to:
- Keep digital records of your income and expenses using approved software
- Send quarterly updates to HMRC summarising your business activity
- Submit a final declaration at the end of the tax year to confirm your total income and tax owed
This means instead of doing everything once a year, you'll report information throughout the year.
Quarterly Reporting Periods
The tax year in the UK runs from 6 April to 5 April.
Under MTD, you'll submit updates roughly every three months.
| Quarter | Period | Deadline |
|---|---|---|
| Q1 | 6 Apr – 5 Jul | 7 Aug |
| Q2 | 6 Jul – 5 Oct | 7 Nov |
| Q3 | 6 Oct – 5 Jan | 7 Feb |
| Q4 | 6 Jan – 5 Apr | 7 May |
After these updates, you'll still submit a final declaration by 31 January, similar to the current Self Assessment deadline.
Do You Need to Report Every Transaction?
No.
HMRC does not require every individual receipt or payment to be submitted in the quarterly updates.
Instead, they receive summary totals for the period — your total income and total expenses.
If your turnover is below the VAT threshold (£90,000), you may also be able to submit a single combined expense figure rather than detailed categories.
However, you still need to keep proper digital records in case HMRC requests them.
What Happens If You Miss a Deadline?
MTD introduces a points-based penalty system.
Each late submission gives you one penalty point.
When you reach four points, you'll receive a £200 fine.
Every additional late submission after that can trigger another £200 penalty.
Why This Matters for Gig Drivers
Gig economy drivers often have:
- income from multiple platforms
- fuel and vehicle expenses
- mileage deductions
- irregular earnings
Without proper tracking, it becomes easy to lose receipts or underestimate your tax bill.
Quarterly reporting means you'll need a clear view of your income and expenses throughout the year.
How Filo Helps
Filo is designed specifically for gig drivers and self-employed workers.
It helps you:
- connect your bank account
- automatically categorise transactions
- track mileage
- monitor your tax position
- submit your MTD quarterly updates to HMRC
All from your phone.
No spreadsheets.
No complicated bookkeeping.
Just review, confirm, and submit.