MTD Penalty Points Explained: How the System Works
In short: Under HMRC's Making Tax Digital for Income Tax, each missed submission deadline (a quarterly update or the tax return) earns 1 point, and 4 points triggers a £200 penalty, with another £200 for each further miss at the threshold. Below the threshold, each point expires after 24 months. Late 2026-27 quarterly updates earn no points for those mandated from April 2026.
Read More