MTD ITSA Penalty Calculator
Calculate your HMRC penalty points and financial penalties under the Making Tax Digital Income Tax points-based system. Updated for the 2026/27 soft landing and carry-over rules.
About MTD ITSA penalties
What are MTD ITSA penalties?▾
MTD ITSA (Making Tax Digital for Income Tax Self Assessment) penalties use a points-based system. You receive 1 penalty point for each missed quarterly update or final declaration deadline. When you accumulate 4 points, a £200 financial penalty is charged for every further missed submission.
What is the MTD ITSA soft landing for 2026/27?▾
HMRC has confirmed that no penalty points or financial penalties will be issued for missed quarterly updates in the first year of MTD (2026/27). This soft landing gives taxpayers time to adjust. However, the soft landing does not cover the final declaration deadline (31 January 2028).
When do MTD penalty points expire?▾
If your total is below the 4-point threshold, points expire automatically 24 months after the missed deadline. Once you reach or exceed the threshold, automatic expiry stops. To reset, you must catch up all outstanding submissions from the previous 24 months and then file everything on time for 12 consecutive months.
Who needs to use MTD ITSA from April 2026?▾
From 6 April 2026, self-employed people and landlords with total qualifying income over £50,000 must use MTD-compatible software and submit quarterly updates to HMRC. Those with income over £30,000 follow from April 2027, and over £20,000 from April 2028.