What are the penalties for Making Tax Digital?

What are the penalties for Making Tax Digital? Each missed Making Tax Digital deadline earns one penalty point, and at 4 points HMRC charges £200. Late tax gets a separate penalty: 4% at day 15 and 4% at day 30 for 2027-28. A late update earns one penalty point, not a fine. Once you reach 4 points, HMRC charges £200, and another £200 for each later missed deadline while you are at the threshold. No. GOV.UK says there are no penalties for missing a quarterly update deadline in the 2026-27 tax year. You still have to send the updates before you can file your tax return, and late returns and late payments are still penalised. Below 4 points, each point is removed automatically 24 months after the missed deadline. At 4 points, you clear them all by filing on time for 12 months and sending anything outstanding from the previous 24 months. Read the full answer, with every source, at rightotax.co.uk.