Drivers across Britain are being urged to prepare for the most significant overhaul of tax reporting procedures in nearly three decades.

From April 2026, self-employed drivers, couriers and logistics operators with combined earnings exceeding £50,000 from self-employment and property must adopt digital tax reporting systems.

The Making Tax Digital initiative will mandate quarterly submissions through approved software, marking a fundamental departure from annual returns.

Income thresholds will progressively decrease, encompassing those earning above £30,000 by April 2027 and extending to workers with revenues exceeding £20,000 from April 2028.

HMRC will introduce the new tax rules next April

This sweeping reform affects thousands of independent transport professionals who must prepare for mandatory digital record-keeping.

Craig Ogilvie, HMRC's Making Tax Digital director, characterised this transformation as the most substantial change since self-assessment began in 1997.

He explained it would "make life easier" for transport professionals by distributing tax obligations throughout the year rather than concentrating them in January.

The quarterly submissions won't constitute complete tax returns but rather straightforward income and expense summaries produced automatically by compatible software.

HMRC has continually reminded Britons of the upcoming changes

He said: "Instead of cramming everything into January for the Self Assessment deadline, you're spreading the load across the year.

"If you make any errors, you can correct them in the next update," Fleet News reported.

During the initial year, traditional Self Assessment returns remain necessary alongside the new system.

The new system promises substantial operational benefits for transport businesses, particularly in monitoring fuel expenditure, vehicle servicing and routine costs.

Ogilvie emphasised that "real-time tax visibility will help you plan and budget more effectively. Many software packages allow you to photograph receipts, log income as it comes in and track expenses on the go."

Various software solutions exist, ranging from complimentary to premium options, including bridging applications that connect existing spreadsheets with MTD infrastructure.

HMRC has launched a voluntary pilot scheme, which Ogilvie urged transport operators to participate in before mandatory implementation begins.

Over 1,300 taxpayers have already tested the system by submitting their initial quarterly updates, with participants reporting that the platform becomes "easy to use once familiar with it".

The programme builds upon established MTD VAT implementation, where 69 per cent of participating companies identified advantages, whilst 67 per cent experienced fewer record-keeping errors.

HMRC remains dedicated to facilitating the transition, with Ogilvie recommending transport operators investigate available software and consider enrolling in the trial programme.

The phased approach allows businesses substantial preparation time before mandatory compliance begins, ensuring the transport sector can adapt to these revolutionary reporting requirements.