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What is MTD penalty points?
Under Making Tax Digital, late submissions are handled by a points system: each missed deadline adds a penalty point, and once you reach the threshold HMRC charges a financial penalty. Late payment of tax is penalised separately.
Why it matters to landlords
Quarterly updates and the final declaration both count. Points expire after a period of compliance, and once at the threshold you need to submit on time for a run of deadlines to reset them.
The simplest protection is to send each update a little early. Your quarterly figures do not need to be perfect, because they can be corrected later in the year.