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What is Late submission penalty (MTD)?
Last verified 23 October 2026
A late submission penalty is the points based penalty for missing a Making Tax Digital for Income Tax deadline. Each missed deadline adds a penalty point, and once you reach the threshold HMRC charges a financial penalty.
Why it matters to landlords
You get one point for each missed tax return deadline and, for tax years after 2026 to 2027, for each missed quarterly update deadline. The threshold is 4 points. At that point you are charged a financial penalty, and every further missed deadline brings another financial penalty. Below the threshold, each point expires automatically after 24 months. Once at the threshold, you clear your points only by meeting every deadline for 12 months and sending anything outstanding from the previous 24 months.
There are no penalties for missing a quarterly update deadline in the 2026 to 2027 tax year, but the updates are still required before you submit your return. The new rules apply from the tax year you join Making Tax Digital, and HMRC says that from April 2027 they will apply to everyone who submits a personal Self Assessment tax return.
Example
In 2027 to 2028 you miss the 7 August and 7 November quarterly deadlines, then file everything else on time. You have 2 points and no financial penalty. If you stay below 4 points, each one expires 24 months later.
MTD for Income Tax penalties →
Related terms
- MTD penalty points
- Late payment penalty (MTD)
- Quarterly period (update period)
- Self Assessment deadlines
- Final declaration