Taxpayers who miss essential deadlines can be hit with fines.
Failure to file a Self Evaluation tax return on time will incur a penalty (Picture: Getty)
HM Income and Customs (HMRC) can be sending £200 fines to taxpayers after a change to tax return guidelines now means some folks should file 4 instances a 12 months.
As of April 2026, self-employed staff and landlords incomes greater than £50,000 from self-employment and property are required to file a tax return each three months as an alternative of yearly to tell the tax workplace of any extra tax they owe. The brand new system goals to assist folks save time when submitting their tax returns by spreading the workload extra evenly all year long. So reasonably than submitting one tax return in January, folks should as an alternative ship quarterly updates to HMRC.
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The change means there at the moment are 4 deadlines in a tax 12 months that round 864,000 self-employed staff and landlords at the moment are obligated to satisfy as of April – and people who miss the deadlines and file late can be hit with fines.
HMRC launched its new ‘Making Tax Digital’ (MTD) system on April 6 for sole merchants and landlords, requiring folks to maintain digital information all year long.
Underneath the brand new regime, when a taxpayer misses a submission deadline they may incur a penalty level and be liable to pay a set penalty of £200 after they have reached a factors threshold primarily based on their submission frequency.
The Institute of Chartered Accountants in England and Wales explains: “The brand new late submission penalties are factors primarily based. If the submission frequency is annual, as soon as the taxpayer reaches two factors, they are going to be charged a £200 penalty. An additional £200 penalty can be charged if one other annual tax return is submitted late.
“As soon as a taxpayer is remitted to make use of MTD revenue tax and is required to make quarterly submissions, a £200 penalty is utilized as soon as they’ve obtained 4 factors.”
Taxpayers will even incur prices primarily based on late funds of tax, with the brand new late fee penalty consisting of two separate costs – one payable 30 days after the fee due date primarily based on a set proportion of the steadiness excellent and one payable from day 31 that may accrue each day, primarily based on the sum excellent.
HMRC has confirmed that fines gained’t be issued if quarterly updates are missed in 2026/27, however taxpayers will nonetheless be topic to a penalty for late tax returns on the finish of the tax 12 months.
Confirming the costs for those who miss a deadline for sending an replace, HMRC stated: “Should you miss quarterly replace deadlines you might get a late submission penalty — these are factors primarily based. Should you attain a penalty level threshold, you’ll get a £200 penalty. The purpose thresholds depend upon whether or not you’re required to make use of Making Tax Digital for Revenue Tax otherwise you’re volunteering.
“HMRC is not going to apply penalty factors for late quarterly updates throughout the 2026 to 2027 tax 12 months. You will have to ship your quarterly updates earlier than you’ll be able to submit your tax return. Penalty factors will nonetheless apply for late tax returns for this tax 12 months.
“If you don’t ship your quarterly replace by the related deadline, you’ll get a late submission penalty level. Should you attain 4 factors, you’ll get a £200 penalty. Penalty factors will even apply for late tax returns.”
These becoming a member of MTD in April 2026 will nonetheless file their tax return for the 2025 to 2026 tax 12 months within the normal manner by January 31, 2027, as this covers the interval earlier than MTD begins. The primary MTD tax return, protecting the 2026 to 2027 tax 12 months, can be due by January 31, 2028.
Whereas no penalty factors can be charged for late submission of necessary quarterly updates throughout the 2026/27 tax 12 months, tax consultants warn that deadlines will nonetheless be in place, and people who delay getting ready danger confusion, missed submissions and mounting issues in a while.
Taxpayers in MTD will want digital information in place for the entire 12 months, and to have submitted some data in quarterly updates in an effort to file their tax return for the 12 months.
Emma Rawson, Director of Public Coverage on the ATT, stated: “It’s useful that penalties gained’t apply within the first 12 months, however folks shouldn’t see that as a motive to attend. Making Tax Digital brings a number of new deadlines and new guidelines.”
HMRC added: “HMRC is not going to apply penalty factors for late quarterly updates throughout the 2026 to 2027 tax 12 months. You will have to ship your quarterly updates earlier than you’ll be able to submit your tax return. Penalty factors will nonetheless apply for late tax returns for this tax 12 months.
“If you don’t ship your quarterly replace by the related deadline, you’ll get a late submission penalty level. Should you attain 4 factors, you’ll get a £200 penalty. Penalty factors will even apply for late tax returns.”
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