Checked against GOV.UK on 14 August 2026
Late payment penalties changed at the same time as late filing, and they are not points based — each late payment is charged on its own. The percentages step up in the second year.
| How late the payment is | 2026 to 2027 tax year | 2027 to 2028 tax year |
|---|---|---|
| Up to 15 days late | No penalty | No penalty |
| 16 to 30 days late | 3% of the tax owed at day 15, or no penalty if it is your first year | 4% of the tax owed at day 15, or no penalty if it is your first year |
| 31 days or more late | 3% at day 15 and 3% at day 30, plus an annual rate of 10% charged daily from day 31 until paid, for up to 2 years | 4% at day 15 and 4% at day 30, plus an annual rate of 10% charged daily from day 31 until paid, for up to 2 years |
Late payment penalties apply to amounts not paid in full by the due date, including a balancing payment on your tax bill and amounts due after an amendment or assessment. They do not apply to payments on account.
From the first day your payment is late, until you pay in full, HMRC also charges late payment interest. MTD did not change how late payment interest works.
If you cannot pay, contact HMRC as soon as possible about a payment plan. If a plan is agreed and you keep to it, penalties are paused from the date you got in touch. You may still be charged if a plan cannot be agreed, or if you do not follow the plan you agreed.
General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC.
General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.