Missed an MTD deadline? Here's what actually happens.
Last checked: 8 September 2026 · Source: GOV.UK & ICAEW
First: breathe. If this is a quarterly update in the 2026/27 tax year, HMRC's soft landing means no penalty points apply to a late quarterly update this year specifically. You still need to file. But you're not about to be fined for being a few days late.
What to do right now
1
Submit as soon as you can. Filing late with your best estimate is better than not filing at all. You can amend the figures afterward.
2
Check which deadline it was. A late quarterly update in 2026/27 carries no points under the soft landing. A late Final Declaration is not covered by the soft landing.
3
If tax is owed, check the payment clock separately. Late submission and late payment are two different systems. Being on time with one doesn't cover the other.
4
Set up reminders for next time so this doesn't repeat quarter after quarter.
The penalty points system, in full
One point per missed deadline. Capped at one point even if you run multiple businesses due on the same date
4 points (for quarterly filers) triggers a £200 fine, then £200 for every further late submission
Points expire automatically 24 months after the missed deadline, provided you don't hit the threshold in the meantime
The 2026/27 soft landing applies to quarterly updates only, not the Final Declaration
Missing the filing deadline and missing the payment deadline are assessed completely differently:
Days 1–15 late paying: no penalty
Day 31+ late: 3% of the tax owed as of day 15, plus a further 3% as of day 30
Ongoing from day 31: 10% a year accruing daily on whatever remains unpaid
Separately, HMRC also charges interest on late payment from the original due date, reported elsewhere at the Bank of England base rate plus a margin. We haven't independently verified the exact current margin against a primary HMRC source, so treat that figure as indicative and check the live rate on GOV.UK if it affects a real payment decision.
Reasonable excuses
You won't get a penalty point if you have a genuine reasonable excuse. Serious illness, bereavement, a fire or flood, or an HMRC system failure are commonly accepted. "I forgot" is not.
The best fix for a missed deadline is not missing the next one. Get every remaining date, with reminders built in.