扒哥吃瓜

Changes to penalties听

If听you鈥檙e听using Making Tax Digital for Income Tax,听new penalties will replace the current late submission and听late payment听penalties that apply to your personal tax return.听听

The new penalties will not apply to the following Self Assessment tax returns:

• non-resident company (submitted鈥痮n behalf of the company)鈥�听
• trust or estate (submitted鈥痓y a trustee)鈥�听
• partnership (submitted鈥痓y a nominated partner)

Current late payment and late听submission听penalties will still apply to these tax returns.

There are no changes to how听late payment听interest works.听

When the new penalties will apply to you听

Changes to late submission penalties and听late payment听penalties will apply to you听from the tax听year听you join Making Tax Digital for Income Tax.听

You can听find out if and when you need to use Making Tax Digital for Income Tax.听

The current penalties will still apply to previous tax years. For example, if you use Making Tax Digital for Income Tax from 6 April 2026, current penalties will apply to your 2025 to 2026 tax return deadline of 31 January 2027.

Deadlines for payments and submissions听

The new penalties听apply听if you miss听the deadlines for sending your quarterly updates, submitting听your tax return or payments.

The deadline to听submit听your tax return and pay any tax you owe is 31 January听after the end of the tax year.

Quarterly updates for the 2026 to 2027 tax year听听

You still need to keep digital records and听send quarterly updates听before you can听submit听your tax return.

The听quarterly update听deadlines听are:听

• 7 August听
• 7 November听
• 7 February听听
• 7 May听

Late submission penalties听

The new late submission penalties are points based.听

For each quarterly update (for tax years听after听2026 to 2027)听or听tax return听deadline听you听miss,听you鈥檒l听get a penalty point.

The penalty point threshold is 4 points.听If you reach this,听you鈥檒l听get a:

• 拢200听penalty
• 拢200听penalty each time you miss听another听submission deadline

You can only get one penalty point per deadline. This applies even if you have more than one business and听send听more than one听quarterly update听late (for tax years听after听2026 to 2027).

Late payment听penalties听

The new听late payment听penalties are more proportionate to how long it takes you to pay what you owe.听听听听

Late payment听penalties apply to payments not paid in full, by the relevant due date. This includes:听

• a听balancing payment听for听an听outstanding amount on your tax bill听
• amounts due following an amendment or assessment听on your tax return听

Late payment听penalties do not apply to any听payments on account听that you may need to make.听听

If you get听a late payment听penalty, the penalty amount depends on how long it takes you to pay what you owe. The sooner you pay your听overdue amount, the lower the penalty amount will be.听

These penalties are not points听based听and will apply听to each听late payment.听

From the first day your payment is late, until you pay in full, we鈥檒l also charge late payment interest.

When听late payment听penalties apply听

In your first year of new penalties,听you have 30 days from the payment due date to either:

• make full payment听
• contact HMRC to听set up a payment plan听

After 30 days,听we鈥檒l听start to apply penalties.听After your first year, this reduces to 15 days.听听

You will only receive the 30-day period once 鈥� if you have volunteered and are now required to use Making Tax Digital for Income Tax, you will continue to have 15 days.

The following table shows how听late payment听penalties will apply, depending on the tax year the payment is for.

	Penalties for 2026 to 2027 tax year	Penalties for 2027 to 2028 tax year
Payment up to 15 days late	No penalty	No penalty
Payment 16 to 30 days late	3% of the听tax owed at听day 15, or no penalty if听it鈥檚听your first year	4% of the tax owed at day 15, or no penalty if听it鈥檚听your first year
Payment 31 days or more late	3% of听the听tax owed at听day 15, and听3% of听the听tax owed at听day 30 Plus, an annual rate of 10% per year on the outstanding amount, charged daily from day 31 until the tax is paid, or for up to 2听years	4% of the tax owed at day 15, and 4% of the tax owed at day 30 Plus, an annual rate of 10% per year on the outstanding amount, charged daily from day 31 until the tax is paid, or for up to 2 years

If you cannot pay on time听

Contact HMRC as soon as possible if听you鈥檙e听having difficulty paying听your Income Tax by the deadline.听

You听can听avoid penalties by contacting HMRC as soon as possible to discuss whether you听can听set up a payment plan听and pay by instalments.听

If a payment plan is agreed and you make the payments, penalties will be paused听from the date听you contacted us.听听

You may be charged a penalty if:听

• a payment plan cannot be agreed听听
• you听do not听follow听the听agreed plan听听

Removing penalty points and penalties听听

If you鈥檙e below the 4-point threshold, we鈥檒l automatically remove each point 24 months after the missed deadline.

If you reach the 4-point threshold, individual points will not automatically be removed. Instead, you will need to meet 2 conditions to remove all your penalty points.鈥�鈥�听

To remove all your penalty points you鈥痭eed to:鈥�听

• send your quarterly updates and submit your tax return on time for 12 months鈥�听
• send any outstanding quarterly updates and submit any outstanding tax returns for the previous 24 months

鈥痀ou can sign in to your HMRC online services account to see the date your points will be removed.鈥�听

In some exceptional circumstances, such as insolvency, HMRC may cancel a penalty鈥痮r penalty point, or remove all penalty points.听

Making an appeal听

We will send you a letter if you get a:听

• late payment听penalty听
• late submission penalty point听
• 拢200 late submission penalty听

If you do not agree with听the penalty point or penalty听you can听appeal. Your letter will tell you how to do this.听

If you become exempt听

If your circumstances change, you may become听exempt听from听Making Tax Digital for Income Tax.听听

If you become exempt in the 2026 to 2027 tax year you will return to the听current late payment and late听submission听penalties听for Self Assessment.听

If you become exempt in the 2027 to 2028 tax year:听

• you will remain under the new penalties听鈥斕齠rom听April 2027, the new penalties will apply to听everyone who听submits听a听personal Self Assessment听tax return听听
• your penalty point threshold will decrease from 4 points to 2 points

If you already have penalty points

If you already have penalty points when your point threshold changes from 4 to 2, your points will听reduce听so that听you are no closer听to听your new threshold.听听

For example, if you have 3 penalty points,听you听are 1 point away from your 4-point threshold.听If听you then become exempt,听your points would reduce to 1. This means听you鈥檙e听still 1 point away听from the听2-point听threshold.