Making Tax Digital for Income Tax
MTD for Income Tax penalties: the points system and the 2026/27 soft landing
How the new points-based penalty regime works and what the soft landing does not cover.
MTD for Income Tax uses a points-based late-submission system: one penalty point per missed deadline. At four points (for mandated taxpayers) HMRC charges £200, with a further £200 for each later miss. **Soft landing 2026/27**: no penalty points for late quarterly updates in the first year for April 2026 joiners. The grace period does NOT cover the final declaration (due 31 January 2028) or late-payment penalties (2% after 15 days, 4% after 30 days). Points reset after a 12-month compliance period with all submissions up to date. **Read the full guide at [rraccountants.uk/mtd-income-tax-penalties](https://rraccountants.uk/mtd-income-tax-penalties).**
Resources
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