Making Tax Digital for Delivery Drivers

Who needs to use MTD for Income Tax?

HMRC says MTD applies when all the relevant conditions are met: you are a sole trader or landlord registered for Self Assessment, you receive self-employment or property income, and your qualifying income is above the threshold for the relevant year.

Delivery work can be one self-employment income source. If you also have another trade or property income, the qualifying amounts are considered together under HMRC’s rules.

MTD start dates and thresholds

Being below a threshold does not remove the normal Self Assessment obligation. It only affects when mandatory MTD begins.

What digital records are required?

You need digital records of self-employment income and expenses in compatible software. HMRC says records should be created close to the transaction date and corrected when an error becomes known.

If several software products are used, the required records and submissions must be digitally linked. Copying figures by hand between products may not satisfy that requirement.

Useful delivery-driver records

• Platform income, tips, fees and adjustments.
• Business mileage with date, vehicle and purpose.
• Expenses with category, business-use share and receipt.
• Corrections, refunds and reimbursements.
• Separate records for each self-employment business where required.

Quarterly updates are summaries, not tax returns

Compatible software totals the digital income and expense records for each business and sends a quarterly update to HMRC. HMRC describes these as summaries rather than tax returns, and says accounting or tax adjustments are not required before each update.

For a standard 6 April accounting period in the first year, the published deadlines are 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. Calendar update periods can apply to a 31 March accounting period. Your software should show the correct periods.

You still complete the annual tax process

Quarterly updates do not replace the annual return. You use compatible software to review adjustments, reliefs, allowances and other income, submit the tax return and pay what is due. For the 2026/27 year HMRC’s timetable gives 31 January 2028 for the return and payment.

Choose software that covers the submission you need

HMRC’s software finder identifies products that can create digital records, send quarterly updates and submit the return. Some people may use more than one digitally linked product.

Exemptions and special cases

HMRC provides an exemption process for people who cannot reasonably use digital tools because of factors such as age, disability, remoteness or religious beliefs. Other special rules and deferrals can apply. An exemption is not automatic merely because digital record keeping is inconvenient.

Use HMRC’s eligibility checker and exemption guidance, or ask an agent, if your circumstances are not straightforward.

A practical preparation checklist

1. Confirm whether you are a sole trader, employee or have more than one status.
2. Submit the relevant Self Assessment return so HMRC has the income figures.
3. Check the qualifying-income threshold and start date.
4. Choose compatible submission software before signing up.
5. Decide how existing TaxBuddie records and exports will connect to that process.
6. Test categories, digital links and corrections before the first deadline.

Official sources

• Check if and when MTD applies — GOV.UK
• MTD timetable — GOV.UK
• Create digital records — GOV.UK
• Send quarterly updates — GOV.UK
• Find compatible software — GOV.UK