How MTD late submission penalties work
HMRC uses a points-based late submission system for Making Tax Digital. Each missed deadline earns a penalty point; once you reach the points threshold, a £200 penalty applies, and further £200 penalties can follow for subsequent defaults. HMRC has signalled a more lenient approach to late quarterly updates in the first year of mandation, but points and penalties are designed to encourage on-time filing, so it's best not to rely on leniency.
What to do if you've missed one
- Bring your records for the period up to date
- Submit the outstanding quarterly update through your compatible software
- Diary your remaining deadlines so you don't miss the next one
- If you've fallen behind or aren't set up, get help to catch up
Don't forget the payment and final declaration deadlines
The quarterly updates are reports. Your actual tax is calculated at the year-end final declaration and is due by 31 January following the tax year — late payment and late final-declaration penalties still apply separately, so keep those dates in view too.
Fallen behind? We can catch you up
If you've missed a deadline, aren't registered, or are still on the old system, call 0114 327 1480 or email shjenquiry@msc-g.com for a catch-up review.
Frequently asked questions
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Need help with Making Tax Digital?
Ask us anything about MTD, or request that we register or file for you. Call 0114 327 1480 or send a message below.