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MTD Penalty Estimator

What could missing a quarterly update — or paying late — actually cost you? Estimate the points-based late-submission and late-payment penalties.

HMRC gives no penalty points for late quarterly updates in 2026 to 2027.
Each missed deadline = 1 point. A £200 penalty applies at 4 points.
No late-payment penalty within 15 days, or 30 days in your first year.
In your first year you have 30 days to pay in full or set up a payment plan before a late-payment penalty. Untick this if you joined in an earlier year, or volunteered before you had to join.

Estimated penalties: £200

You’ve hit the 4-point threshold, so a late-submission penalty applies.

Penalty points4 / 4
Late-submission penalty£200
Late-payment penalty£0
Estimated total£200

Based on 2026/27 and 2027/28 UK tax rules · GOV.UK source · This is an estimate, not personal tax advice. Always check your own circumstances with HMRC or a qualified accountant.

Illustration for the mtd penalty calculator

How the points system works

Missing a single quarterly update doesn’t trigger an instant fine. HMRC gives you a penalty point each time you miss a deadline, and a £200 penalty applies once you reach four points. Stay compliant for a while and the points expire. Pay your tax late and separate late-payment penalties apply on top, escalating the longer the tax is outstanding.

The first year is different. For 2026 to 2027, HMRC won't give penalty points for late quarterly updates. You still need to send all four before your tax return, and a late tax return or late payment is still penalised. Points for late quarterly updates start from 2027 to 2028.

The good news: these are entirely avoidable. Quarterwise totals your records to each period end and reminds you well before every deadline — see the exact dates with the deadline calculator.

Common questions

How do MTD late-submission penalties work?
It’s a points system. You get one point each time you miss a submission deadline. For quarterly obligations, once you reach four points you get a £200 penalty, with a further £200 for each subsequent missed deadline while at the threshold. Points expire after a period of compliance. In the first year, 2026 to 2027, late quarterly updates earn no points, but a late tax return and late payment are still penalised.
What are the late-payment penalties?
There’s no penalty if you pay within 15 days. After that a first penalty applies (a percentage of the tax outstanding at day 15 and again at day 30), and a second penalty then accrues daily from day 31. These percentages were increased in April 2025 — always check the current rates on GOV.UK.
Is this exact?
It’s an estimate to show the scale of the cost. Penalty rules and rates change, so confirm the current figures with HMRC.

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