This is a freeview 'At a glance' guide to penalties under the Making Tax Digital regime.

HMRC's Making Tax Digital (MTD) programme has resulted in a re-design of penalties for late filing and payment. 

Subscribers see Penalties: points based system 

Late submission penalties 

Finance Act 2021 introduced a points-based late filing penalty regime which will replace existing late filing penalties for VAT and Income Tax. 

This measure was consulted on in 2018, see Penalties: points based system

Late payment penalties

An amended Late payment penalty regime will be aligned across the main taxes. 


The new late payment and late submission penalty rules will apply as follows:

Interest harmonisation 

The interest rules for VAT align with Income Tax rules from April 2022. 

Useful guides on this topic

Penalties: late submission (proposed points based)
Late returns can be subject to a mix of fixed and tax geared penalties. What penalties apply for late filing? Which penalty will apply and when? 

Penalties: Late Payment (Subscriber guide)
What penalties are charged when tax is paid late? A guide for Subscribers.

Grounds for Appeal: Reasonable excuse
What is considered to be a 'reasonable excuse' when a taxpayer makes an appeal against a tax compliance failure?

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