Penalties for missed deadlines
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From 2027/28 onwards, missed quarterly update deadlines can add penalty points. The rules mirror those for a late tax return.
- One point per deadline: you get 1 penalty point for each missed deadline. If you miss updates for several income sources on the same due date, you still get only one point for that date.
- Threshold at 4 points: at 4 points within 2 years, HMRC imposes a £200 fixed penalty. Each further missed deadline while at the threshold adds another £200.
- Separate from VAT: Making Tax Digital for Income Tax points do not mix with VAT penalty points.
- Expiry below threshold: if you do not reach 4 points, individual points expire after 2 years.
- Reset after reaching 4 points: to clear the threshold you need 12 consecutive months of on-time submissions and all submissions from the previous 24 months to have been received (even if some were filed late).
2026 to 2027 grace period
If you first had to join on 6 April 2026, HMRC will not give penalty points for late quarterly updates in the 2026 to 2027 tax year. You still must send all updates before your tax return, and a late tax return can still attract points and other penalties.
See the Penalties guide for grace-period detail, how points reset after you reach 4, and late payment rules (which are separate from late submission).
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