MTD penalty estimator
HMRC replaced instant fines with a points system for Making Tax Digital for Income Tax. Occasional slips cost nothing; persistent lateness costs £200 a time. Slide the estimator to your situation.
3 · Penalty estimator
Late submissions earn points, not instant fines. You get 1 point per missed deadline (one point maximum per deadline, even with several businesses). At 4 points HMRC charges £200, then another £200 for every further missed deadline.
Your estimated exposure
4 points
£200 penalty
You are at or past the 4-point threshold, so HMRC charges £200 now and £200 for each further missed deadline. Points at the threshold only clear after 12 months of on-time submissions plus filing anything outstanding from the previous 24 months.
Late payment is separate: penalties and interest apply to tax paid late, and are not estimated here.
How the points system works
- You get 1 penalty point for each quarterly update deadline (for tax years after 2026/27) or tax return deadline you miss.
- You can only get one point per deadline, even if you run several businesses and send several updates late.
- The threshold is 4 points. Reaching it triggers a £200 penalty, and every further missed deadline adds another £200.
- Below the threshold, each point is removed automatically 24 months after the missed deadline.
- At the threshold, points only clear after 12 months of on-time submissions and filing everything outstanding from the previous 24 months.
- For the 2026/27 tax year there are no penalty points for late quarterly updates — but the updates must still be sent before you can submit your tax return, and a late tax return still earns a point.
- Your MTD for Income Tax points are separate from any VAT points. Late payment penalties and interest are a different system again and are not estimated here.
Work out your deadlines first in the deadline calendar, or confirm your wave with the MTD checker.