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What are the MTD penalties?
By the VoxaMTD team. Last verified 31 October 2026
Late submissions earn one penalty point per missed deadline, and reaching 4 points triggers a financial penalty. There are no penalty points for late quarterly updates in the 2026 to 2027 tax year, but late tax returns still earn points.
After the threshold is reached, each further missed deadline brings another financial penalty. You can only get one point per deadline. Voluntary users have different rules for late quarterly updates.
Late payment is separate and is not points based. For 2026 to 2027 there is no penalty up to 15 days late. After that, percentage charges apply to the tax owed, and interest runs on what remains unpaid. In the first year of the new penalties the 30 day window is more generous, and it applies only once.
If you contact HMRC early and agree a payment plan, and keep to it, late payment penalties stop from the date you made contact. Quarterly updates are still required in 2026 to 2027 even though no points are given for late ones.
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