MTD Penalty Points Calculator
Add the deadlines you missed to see the penalty points and fixed charges under the points-based late submission penalty regime.
How this is calculated
Each missed quarterly update or final declaration deadline earns one penalty point: never more than one point per deadline, even if you have several businesses. Once you reach 4 points, HMRC charges a fixed £200 penalty, and a further £200 for every deadline you miss after that.
HMRC applies a transitional soft landing: a missed quarterly update due in the 2026/27 tax year (the first year Making Tax Digital operates) carries no penalty point at all. This does not cover the final declaration deadline, which can still earn a point in that year.
Below the 4-point threshold, a single point expires 24 months after the deadline it relates to. Once you reach the threshold, points no longer expire automatically: you must submit on time for 12 consecutive months and bring any submissions from the prior 24 months up to date to reset to zero.
Worked example
Suppose you miss two quarterly updates in 2026/27 and then all four the following year. That is six missed deadlines, but only 4 points: the first two fall in the soft-landing year and carry no point at all.
| Missed deadline | Points | Charge |
|---|---|---|
| 1. Missed quarterly update, 2026/27 (soft landing, no point) | 0 | — |
| 2. Missed quarterly update, 2026/27 (soft landing, no point) | 0 | — |
| 3. Missed quarterly update, 2027/28 | 1 | — |
| 4. Missed quarterly update, 2027/28 | 2 | — |
| 5. Missed quarterly update, 2027/28 | 3 | — |
| 6. Missed quarterly update, 2027/28 | 4 | £200 |
| Threshold of 4 points reached | 4 | £200 |
Open this example in the estimator to change any figure.
Sources
Frequently asked questions
- Does the soft landing cover my first year, whenever I join?
- No. The soft landing is tied to the 2026/27 tax year specifically, not to your personal first year of mandation. If you are mandated from April 2027 or April 2028, quarterly updates in your first year are not covered.
- Can I get more than one point for the same deadline?
- No. You can only get one penalty point per deadline, even if you run more than one business or property and miss several quarterly updates due on the same date.
- What happens to my points once I reach 4?
- You are charged £200. Your points stop at 4 rather than climbing further, and every further missed deadline while you remain at the threshold triggers another £200 charge instead of a point, until you meet the reset conditions.
- Do points below the threshold ever disappear?
- Yes. Each point automatically expires 24 months after the deadline it relates to, as long as you have not reached the 4-point threshold.
- Is a missed final declaration treated the same as a missed quarterly update?
- Both earn one point and count toward the same 4-point threshold, but the final declaration is never covered by the quarterly-update soft landing.
- Is this the same points system used for VAT?
- It is the same points-based late submission penalty model HMRC already applies to VAT, extended to Income Tax for Making Tax Digital.
- Does this calculator cover late payment penalties too?
- No. Late payment penalties are a separate regime based on how late you pay, not how late you submit. This tool covers late submission points and charges only.