{"id":1318,"date":"2026-07-15T07:29:02","date_gmt":"2026-07-15T07:29:02","guid":{"rendered":"https:\/\/www.bsassociate.co.uk\/blog\/?p=1318"},"modified":"2026-07-15T07:29:03","modified_gmt":"2026-07-15T07:29:03","slug":"mtd-penalties-2026-27-key-rules","status":"publish","type":"post","link":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/","title":{"rendered":"Making Tax Digital Compliance in 2026\/27: Five Penalty Rules You Cannot Ignore\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">&#8220;There are no penalties in the first year&#8221; is the line doing the rounds in every London landlord WhatsApp group and freelancer Slack channel right now.&nbsp;It&#8217;s&nbsp;not wrong exactly, but&nbsp;it&#8217;s&nbsp;dangerously incomplete. HMRC&#8217;s soft landing for Making Tax Digital covers far less than most people&nbsp;assumes, and the gap between what taxpayers think is protected and&nbsp;what&#8217;s&nbsp;protected&nbsp;is where penalty letters come from.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We work with sole traders, contractors, and landlords across&nbsp;UK&nbsp;who are moving into MTD for Income Tax this year, and the same misunderstandings come up&nbsp;repeatedly. So instead of another generic rundown of HMRC&#8217;s rulebook,&nbsp;here&#8217;s&nbsp;what we&nbsp;are&nbsp;telling&nbsp;clients: the five rules that matter, why the easement is narrower than it sounds, and where people commonly trip up.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a broader look at whether MTD applies to you at all, see our earlier guide on&nbsp;<a href=\"https:\/\/www.bsassociate.co.uk\/blog\/mtd-for-income-tax-uk-sole-traders-landlords-2026\/\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for Income Tax for UK sole traders and landlords in 2026<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rule 1: &#8220;No Penalties&#8221; Only Ever Meant Quarterly Updates<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s&nbsp;the misunderstanding we hear most often: taxpayers believe the entire 2026\/27 tax year is penalty-free. It&nbsp;isn&#8217;t. The easement is specific and&nbsp;narrow;&nbsp;it applies only to the four quarterly update submissions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Miss a quarterly deadline in 2026\/27 and nothing happens to your points record. Miss your Final Declaration, due 31 January 2028, and you are hit exactly as hard as anyone under the standard rules, because the Final Declaration sits outside the easement entirely.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Take Priya, a graphic designer in Hackney with combined freelance and rental income above the&nbsp;mandation&nbsp;threshold. She assumes, like many, that her whole first MTD year is a write-off zone where deadlines&nbsp;don&#8217;t&nbsp;really matter. She files her Q1 update three weeks late without concern, which is fine under the easement, but she carries that same relaxed attitude into January 2028 and files her Final Declaration ten days late too. That one submission earns her a penalty point&nbsp;immediately, because the soft landing never covered it.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The takeaway: build your calendar around every deadline as if it counts, because one of them absolutely does.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rule 2: Submission and Payment Are Two Completely Different Games<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This is the second trap. People conflate &#8220;no penalty for late filing&#8221; with &#8220;no penalty for late paying.&#8221; These are unrelated systems under MTD, and the payment side has no soft landing attached to it at all.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Late payment&nbsp;penalties scale with time, not with a flat fee:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nothing is charged in the first fifteen days after your payment due date\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Between day 16 and day 30, a penalty applies to\u00a0whatever&#8217;s\u00a0still outstanding, calculated at an\u00a0annualised\u00a0rate\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>From day 31 onwards, a second penalty starts\u00a0accruing\u00a0daily on top of the first, and keeps running until you clear the balance\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Interest is&nbsp;separated&nbsp;again, and it has not changed under MTD.&nbsp;It runs from the due date until the day HMRC actually receives your money, regardless of any penalty.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The practical effect: a balance left unpaid for a&nbsp;full quarter cost&nbsp;meaningfully more than the same balance cleared within the first fortnight, because the second penalty compounds daily rather than sitting as a one-time charge. If quarterly cash flow is going to be tight while you adjust to MTD reporting, our guide to&nbsp;<a href=\"https:\/\/www.bsassociate.co.uk\/blog\/mtd-for-income-tax-quarterly-deadline\/\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for Income Tax quarterly deadlines<\/a>&nbsp;covers how to plan around that.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rule 3: Your First Year Buys You Double the Normal Grace Period<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Not every rule in the new system works against you. For your first year under MTD&#8217;s penalty regime, the window before&nbsp;a late payment&nbsp;penalty starts is doubled, from the standard&nbsp;15 days&nbsp;to&nbsp;30 days.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Practically, if your balancing payment falls due on 31 January, you have until early March to either pay in full or agree a Time to Pay arrangement with HMRC before the clock starts on penalties. From year two onward, that window halves back to&nbsp;15 days, so this concession is genuinely a one-off cushion, not a permanent feature.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One detail worth knowing: contacting HMRC before the grace period ends can pause penalties entirely from that point. Contact them after&nbsp;it&#8217;s&nbsp;already expired, and penalties pause from whenever you reach out, rather than being wiped retroactively. Acting early is always&nbsp;a&nbsp;stronger position.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rule 4: The Points System Punishes Patterns, Not Mistakes<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.gov.uk\/guidance\/penalties-for-making-tax-digital-for-income-tax\" type=\"link\" id=\"https:\/\/www.gov.uk\/guidance\/penalties-for-making-tax-digital-for-income-tax\">MTD&#8217;s late submission penalties<\/a> work nothing like the old\u00a0self-assessment\u00a0fine-per-slip model.\u00a0Instead, every missed deadline adds a point to your record, similar to how driving penalty points accumulate.\u00a0A single point on its own carries no financial cost.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The threshold where a \u00a3200 fixed penalty kicks in depends on how often&nbsp;you&#8217;re&nbsp;required to report:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Filing frequency<\/strong>&nbsp;<\/td><td><strong>Points threshold<\/strong>&nbsp;<\/td><td><strong>Financial penalty<\/strong>&nbsp;<\/td><\/tr><tr><td>Quarterly (most MTD users)&nbsp;<\/td><td>4 points&nbsp;<\/td><td>\u00a3200, then \u00a3200 per further late submission&nbsp;<\/td><\/tr><tr><td>Annual only&nbsp;<\/td><td>2 points&nbsp;<\/td><td>\u00a3200, then \u00a3200 per further late submission&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A useful protection here: even if you&#8217;re required to submit more than one update for the same period (say, one for a sole trade and one for a rental property), a late filing across both only ever earns a single point for that deadline, not two.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Points&nbsp;aren&#8217;t&nbsp;permanent. They expire automatically after&nbsp;24 months&nbsp;if you&nbsp;haven&#8217;t&nbsp;crossed your threshold. If you have crossed it, getting back to a clean record takes sustained good&nbsp;behaviour,&nbsp;generally 12&nbsp;months of on-time quarterly filing, plus clearing anything still outstanding from the prior two years. Under the old system, a late return was a one-off inconvenience. Under MTD, a pattern of lateness has lasting consequences, which is exactly the&nbsp;behaviour&nbsp;change HMRC is designing for.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rule 5: Volunteering Early Comes&nbsp;with&nbsp;Its Own Safety Net<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Some taxpayers are choosing to join MTD voluntarily before their&nbsp;mandation&nbsp;date arrives, often to get comfortable with the software ahead of time. HMRC extends a separate protection to this group: no penalty points for late quarterly updates until the taxpayer&#8217;s actual&nbsp;mandation&nbsp;date is reached, regardless of when they chose to start.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That protection has a hard stop, though. Once&nbsp;mandation&nbsp;kicks in, whatever easement applied to voluntary status ends, and the standard rules for that tax year take over from that point forward. If early adoption is something&nbsp;you&#8217;re&nbsp;weighing up,&nbsp;it&#8217;s&nbsp;worth mapping your specific&nbsp;mandation&nbsp;date against your income thresholds first, since guessing wrong here can mean losing the protection sooner than expected.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-Rules-1024x683.jpg\" alt=\"MTD Penalty Rules\" class=\"wp-image-1320\" srcset=\"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-Rules-1024x683.jpg 1024w, https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-Rules-300x200.jpg 300w, https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-Rules-768x512.jpg 768w, https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-Rules.jpg 1536w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What This Looks Like for a Typical London Taxpayer<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Multiple income streams are the norm rather than the exception across&nbsp;the UK, a consultancy plus a buy-to-let, or freelance design work topped up by a second rental property. Combined gross income across those sources is what&nbsp;determines&nbsp;your&nbsp;mandation&nbsp;date, so&nbsp;uk&nbsp;taxpayers with mixed income often cross the threshold earlier than they&nbsp;expect and&nbsp;end up needing more than one quarterly update per period.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The clients who navigate this most smoothly&nbsp;aren&#8217;t&nbsp;the ones leaning on the easement.&nbsp;They&#8217;re&nbsp;the ones who use this first, lower-stakes year to build the reporting habits that MTD will demand permanently from year two onward. By the time penalties are genuinely&nbsp;living&nbsp;for quarterly filing, on-time submission is already routine rather than a new discipline to learn under pressure.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Talk to&nbsp;Brayan &amp; Spencer Associates&nbsp;Before Your First MTD Deadline<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Every taxpayer&#8217;s&nbsp;mandation&nbsp;date, income mix, and filing frequency is different, and the penalty rules shift depending on all three. Rather than guessing where you stand, our team can confirm your exact obligations, set up your digital record-keeping, and manage your quarterly submissions and Final Declaration for you.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Get in touch with our MTD team:<\/strong>&nbsp;visit&nbsp;<a href=\"https:\/\/www.bsassociate.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">www.bsassociate.co.uk<\/a>&nbsp;or call&nbsp;<strong>0207 183 5956<\/strong>&nbsp;to book a consultation ahead of your 2026\/27 deadlines.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Browse more guidance in our full&nbsp;<a href=\"https:\/\/www.bsassociate.co.uk\/blog\/category\/making-tax-digital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital blog category<\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Frequently Asked Questions\u00a0<\/strong><\/h3>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1784097046074\"><strong class=\"schema-faq-question\"><strong>Is the entire 2026\/27 tax year penalty-free under MTD?<\/strong><\/strong> <p class=\"schema-faq-answer\">No, only the four quarterly updates are covered by the soft landing. Your Final Declaration, due 31 January 2028, is not protected and carries a penalty point if filed late.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784097057982\"><strong class=\"schema-faq-question\"><strong>If\u00a0I&#8217;m\u00a0not\u00a0penalised\u00a0for a late quarterly update, do I still need to\u00a0submit\u00a0it?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">Yes. HMRC requires all four quarterly updates to be filed before\u00a0you&#8217;re\u00a0able to\u00a0submit\u00a0your Final Declaration, even though no points are issued for lateness during 2026\/27.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784097069603\"><strong class=\"schema-faq-question\"><strong>Does the soft landing protect me from\u00a0late payment\u00a0penalties too?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">No.\u00a0Late payment\u00a0penalties\u00a0operate\u00a0on a separate system and are not covered by the quarterly\u00a0update of\u00a0easement at all.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784097086144\"><strong class=\"schema-faq-question\"><strong>How much longer do I have to pay in my first year under MTD?<\/strong><\/strong> <p class=\"schema-faq-answer\">Thirty days from your payment due date, rather than the standard\u00a015 days\u00a0that\u00a0apply\u00a0from your second year onward, provided you pay in full or arrange a Time to Pay agreement within that window.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784097101091\"><strong class=\"schema-faq-question\"><strong>How many late filings does it take before I&#8217;m actually fined?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">Four points for quarterly filers, or two points for annual filers, before a \u00a3200 fixed penalty applies. Each further late submission after that adds another \u00a3200.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784097113197\"><strong class=\"schema-faq-question\"><strong>Can penalty points be removed from my record?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, they expire automatically after\u00a024 months\u00a0if you stay under your threshold. If\u00a0you&#8217;ve\u00a0exceeded it, clearing your record requires a sustained run of on-time filing,\u00a0generally 12\u00a0months for quarterly filers.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;There are no penalties in the first year&#8221; is the line doing the rounds in every London landlord WhatsApp group and freelancer Slack channel right now.&nbsp;It&#8217;s&nbsp;not wrong exactly, but&nbsp;it&#8217;s&nbsp;dangerously incomplete. HMRC&#8217;s soft landing for Making Tax Digital covers far less than most people&nbsp;assumes, and the gap between what taxpayers think is protected and&nbsp;what&#8217;s&nbsp;protected&nbsp;is where penalty [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1319,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[48],"tags":[72,45,47,49,51,66],"class_list":["post-1318","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-making-tax-digital","tag-accountancy-firm-london","tag-making-tax-digital","tag-making-tax-digital-for-income-tax","tag-making-tax-digital-for-income-tax-self-assessment","tag-making-tax-digital-software","tag-tax-advisers-in-london"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Making Tax Digital Penalties 2026\/27: 5 Key Rules to Know<\/title>\n<meta name=\"description\" content=\"MTD Penalties 2026\/27 explained: what&#039;s covered, what isn&#039;t, and how to stay compliant. Get expert MTD help from BS Associate today.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Making Tax Digital Penalties 2026\/27: 5 Key Rules to Know\" \/>\n<meta property=\"og:description\" content=\"MTD Penalties 2026\/27 explained: what&#039;s covered, what isn&#039;t, and how to stay compliant. Get expert MTD help from BS Associate today.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/\" \/>\n<meta property=\"og:site_name\" content=\"BS Associates Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/brayanandspenceruk\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-15T07:29:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-15T07:29:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Pat Sharma FCA, ACCA\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@brayanspenceruk\" \/>\n<meta name=\"twitter:site\" content=\"@brayanspenceruk\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Pat Sharma FCA, ACCA\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/\"},\"author\":{\"name\":\"Pat Sharma FCA, ACCA\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/#\\\/schema\\\/person\\\/9bdce0b26bd5202673c3ea5073ad533f\"},\"headline\":\"Making Tax Digital Compliance in 2026\\\/27: Five Penalty Rules You Cannot Ignore\u00a0\",\"datePublished\":\"2026-07-15T07:29:02+00:00\",\"dateModified\":\"2026-07-15T07:29:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/\"},\"wordCount\":1659,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/MTD-Penalty-.png\",\"keywords\":[\"Accountancy Firm London\",\"Making Tax Digital\",\"Making Tax Digital for Income Tax\",\"making tax digital for income tax\u00a0self assessment\",\"making tax digital software\",\"Tax Advisers in London\"],\"articleSection\":[\"Making Tax Digital\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#respond\"]}]},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/\",\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/\",\"name\":\"Making Tax Digital Penalties 2026\\\/27: 5 Key Rules to Know\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/MTD-Penalty-.png\",\"datePublished\":\"2026-07-15T07:29:02+00:00\",\"dateModified\":\"2026-07-15T07:29:03+00:00\",\"description\":\"MTD Penalties 2026\\\/27 explained: what's covered, what isn't, and how to stay compliant. Get expert MTD help from BS Associate today.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097046074\"},{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097057982\"},{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097069603\"},{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097086144\"},{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097101091\"},{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097113197\"}],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/MTD-Penalty-.png\",\"contentUrl\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/MTD-Penalty-.png\",\"width\":1280,\"height\":720,\"caption\":\"MTD Penalties 2026\\\/27 - 5 Key Rules Every Taxpayer Must Know\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Making Tax Digital Compliance in 2026\\\/27: Five Penalty Rules You Cannot Ignore\u00a0\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/\",\"name\":\"BS Associates Blog\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/#organization\",\"name\":\"Brayan & Spencer Associates\",\"alternateName\":\"BS Associates\",\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/11\\\/bs-logo1-1-e1700552244584.png\",\"contentUrl\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/11\\\/bs-logo1-1-e1700552244584.png\",\"width\":113,\"height\":74,\"caption\":\"Brayan & Spencer Associates\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/brayanandspenceruk\\\/\",\"https:\\\/\\\/x.com\\\/brayanspenceruk\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/brayanandspencerassociates\\\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/#\\\/schema\\\/person\\\/9bdce0b26bd5202673c3ea5073ad533f\",\"name\":\"Pat Sharma FCA, ACCA\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/0089077462875653326cd8816d1f80eba5bfa89f7b8891b4ac6eb4850c57424e?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/0089077462875653326cd8816d1f80eba5bfa89f7b8891b4ac6eb4850c57424e?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/0089077462875653326cd8816d1f80eba5bfa89f7b8891b4ac6eb4850c57424e?s=96&d=mm&r=g\",\"caption\":\"Pat Sharma FCA, ACCA\"},\"description\":\"Pat Sharma FCA, ACCA Pat Sharma is a Fellow Chartered Accountant (FCA) and ACCA-qualified tax advisor with over 15 years of experience supporting small businesses, contractors, landlords, and limited companies across London. As the founder of Brayan &amp; Spencer Associates, Pat specialises in proactive tax planning, cloud accounting, and HMRC compliance for UK businesses.\",\"sameAs\":[\"https:\\\/\\\/www.bsassociate.co.uk\"],\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/author\\\/admin\\\/\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097046074\",\"position\":1,\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097046074\",\"name\":\"Is the entire 2026\\\/27 tax year penalty-free under MTD?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No, only the four quarterly updates are covered by the soft landing. Your Final Declaration, due 31 January 2028, is not protected and carries a penalty point if filed late.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097057982\",\"position\":2,\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097057982\",\"name\":\"If\u00a0I'm\u00a0not\u00a0penalised\u00a0for a late quarterly update, do I still need to\u00a0submit\u00a0it?\u00a0\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. HMRC requires all four quarterly updates to be filed before\u00a0you're\u00a0able to\u00a0submit\u00a0your Final Declaration, even though no points are issued for lateness during 2026\\\/27.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097069603\",\"position\":3,\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097069603\",\"name\":\"Does the soft landing protect me from\u00a0late payment\u00a0penalties too?\u00a0\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No.\u00a0Late payment\u00a0penalties\u00a0operate\u00a0on a separate system and are not covered by the quarterly\u00a0update of\u00a0easement at all.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097086144\",\"position\":4,\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097086144\",\"name\":\"How much longer do I have to pay in my first year under MTD?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Thirty days from your payment due date, rather than the standard\u00a015 days\u00a0that\u00a0apply\u00a0from your second year onward, provided you pay in full or arrange a Time to Pay agreement within that window.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097101091\",\"position\":5,\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097101091\",\"name\":\"How many late filings does it take before I'm actually fined?\u00a0\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Four points for quarterly filers, or two points for annual filers, before a \u00a3200 fixed penalty applies. Each further late submission after that adds another \u00a3200.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097113197\",\"position\":6,\"url\":\"https:\\\/\\\/www.bsassociate.co.uk\\\/blog\\\/mtd-penalties-2026-27-key-rules\\\/#faq-question-1784097113197\",\"name\":\"Can penalty points be removed from my record?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, they expire automatically after\u00a024 months\u00a0if you stay under your threshold. If\u00a0you've\u00a0exceeded it, clearing your record requires a sustained run of on-time filing,\u00a0generally 12\u00a0months for quarterly filers.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Making Tax Digital Penalties 2026\/27: 5 Key Rules to Know","description":"MTD Penalties 2026\/27 explained: what's covered, what isn't, and how to stay compliant. Get expert MTD help from BS Associate today.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/","og_locale":"en_GB","og_type":"article","og_title":"Making Tax Digital Penalties 2026\/27: 5 Key Rules to Know","og_description":"MTD Penalties 2026\/27 explained: what's covered, what isn't, and how to stay compliant. Get expert MTD help from BS Associate today.","og_url":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/","og_site_name":"BS Associates Blog","article_publisher":"https:\/\/www.facebook.com\/brayanandspenceruk\/","article_published_time":"2026-07-15T07:29:02+00:00","article_modified_time":"2026-07-15T07:29:03+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-.png","type":"image\/png"}],"author":"Pat Sharma FCA, ACCA","twitter_card":"summary_large_image","twitter_creator":"@brayanspenceruk","twitter_site":"@brayanspenceruk","twitter_misc":{"Written by":"Pat Sharma FCA, ACCA","Estimated reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#article","isPartOf":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/"},"author":{"name":"Pat Sharma FCA, ACCA","@id":"https:\/\/www.bsassociate.co.uk\/blog\/#\/schema\/person\/9bdce0b26bd5202673c3ea5073ad533f"},"headline":"Making Tax Digital Compliance in 2026\/27: Five Penalty Rules You Cannot Ignore\u00a0","datePublished":"2026-07-15T07:29:02+00:00","dateModified":"2026-07-15T07:29:03+00:00","mainEntityOfPage":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/"},"wordCount":1659,"commentCount":0,"publisher":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/#organization"},"image":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-.png","keywords":["Accountancy Firm London","Making Tax Digital","Making Tax Digital for Income Tax","making tax digital for income tax\u00a0self assessment","making tax digital software","Tax Advisers in London"],"articleSection":["Making Tax Digital"],"inLanguage":"en-GB","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#respond"]}]},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/","url":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/","name":"Making Tax Digital Penalties 2026\/27: 5 Key Rules to Know","isPartOf":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#primaryimage"},"image":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-.png","datePublished":"2026-07-15T07:29:02+00:00","dateModified":"2026-07-15T07:29:03+00:00","description":"MTD Penalties 2026\/27 explained: what's covered, what isn't, and how to stay compliant. Get expert MTD help from BS Associate today.","breadcrumb":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097046074"},{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097057982"},{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097069603"},{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097086144"},{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097101091"},{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097113197"}],"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#primaryimage","url":"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-.png","contentUrl":"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2026\/07\/MTD-Penalty-.png","width":1280,"height":720,"caption":"MTD Penalties 2026\/27 - 5 Key Rules Every Taxpayer Must Know"},{"@type":"BreadcrumbList","@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.bsassociate.co.uk\/blog\/"},{"@type":"ListItem","position":2,"name":"Making Tax Digital Compliance in 2026\/27: Five Penalty Rules You Cannot Ignore\u00a0"}]},{"@type":"WebSite","@id":"https:\/\/www.bsassociate.co.uk\/blog\/#website","url":"https:\/\/www.bsassociate.co.uk\/blog\/","name":"BS Associates Blog","description":"","publisher":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.bsassociate.co.uk\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/www.bsassociate.co.uk\/blog\/#organization","name":"Brayan & Spencer Associates","alternateName":"BS Associates","url":"https:\/\/www.bsassociate.co.uk\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.bsassociate.co.uk\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2023\/11\/bs-logo1-1-e1700552244584.png","contentUrl":"https:\/\/www.bsassociate.co.uk\/blog\/wp-content\/uploads\/2023\/11\/bs-logo1-1-e1700552244584.png","width":113,"height":74,"caption":"Brayan & Spencer Associates"},"image":{"@id":"https:\/\/www.bsassociate.co.uk\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/brayanandspenceruk\/","https:\/\/x.com\/brayanspenceruk","https:\/\/www.linkedin.com\/company\/brayanandspencerassociates\/"]},{"@type":"Person","@id":"https:\/\/www.bsassociate.co.uk\/blog\/#\/schema\/person\/9bdce0b26bd5202673c3ea5073ad533f","name":"Pat Sharma FCA, ACCA","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/secure.gravatar.com\/avatar\/0089077462875653326cd8816d1f80eba5bfa89f7b8891b4ac6eb4850c57424e?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/0089077462875653326cd8816d1f80eba5bfa89f7b8891b4ac6eb4850c57424e?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/0089077462875653326cd8816d1f80eba5bfa89f7b8891b4ac6eb4850c57424e?s=96&d=mm&r=g","caption":"Pat Sharma FCA, ACCA"},"description":"Pat Sharma FCA, ACCA Pat Sharma is a Fellow Chartered Accountant (FCA) and ACCA-qualified tax advisor with over 15 years of experience supporting small businesses, contractors, landlords, and limited companies across London. As the founder of Brayan &amp; Spencer Associates, Pat specialises in proactive tax planning, cloud accounting, and HMRC compliance for UK businesses.","sameAs":["https:\/\/www.bsassociate.co.uk"],"url":"https:\/\/www.bsassociate.co.uk\/blog\/author\/admin\/"},{"@type":"Question","@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097046074","position":1,"url":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097046074","name":"Is the entire 2026\/27 tax year penalty-free under MTD?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No, only the four quarterly updates are covered by the soft landing. Your Final Declaration, due 31 January 2028, is not protected and carries a penalty point if filed late.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097057982","position":2,"url":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097057982","name":"If\u00a0I'm\u00a0not\u00a0penalised\u00a0for a late quarterly update, do I still need to\u00a0submit\u00a0it?\u00a0","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Yes. HMRC requires all four quarterly updates to be filed before\u00a0you're\u00a0able to\u00a0submit\u00a0your Final Declaration, even though no points are issued for lateness during 2026\/27.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097069603","position":3,"url":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097069603","name":"Does the soft landing protect me from\u00a0late payment\u00a0penalties too?\u00a0","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No.\u00a0Late payment\u00a0penalties\u00a0operate\u00a0on a separate system and are not covered by the quarterly\u00a0update of\u00a0easement at all.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097086144","position":4,"url":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097086144","name":"How much longer do I have to pay in my first year under MTD?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Thirty days from your payment due date, rather than the standard\u00a015 days\u00a0that\u00a0apply\u00a0from your second year onward, provided you pay in full or arrange a Time to Pay agreement within that window.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097101091","position":5,"url":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097101091","name":"How many late filings does it take before I'm actually fined?\u00a0","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Four points for quarterly filers, or two points for annual filers, before a \u00a3200 fixed penalty applies. Each further late submission after that adds another \u00a3200.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097113197","position":6,"url":"https:\/\/www.bsassociate.co.uk\/blog\/mtd-penalties-2026-27-key-rules\/#faq-question-1784097113197","name":"Can penalty points be removed from my record?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Yes, they expire automatically after\u00a024 months\u00a0if you stay under your threshold. If\u00a0you've\u00a0exceeded it, clearing your record requires a sustained run of on-time filing,\u00a0generally 12\u00a0months for quarterly filers.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1318"}],"version-history":[{"count":1,"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1318\/revisions"}],"predecessor-version":[{"id":1321,"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1318\/revisions\/1321"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/media\/1319"}],"wp:attachment":[{"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bsassociate.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}