Are there really no penalties for late quarterly updates in 2026/27?
Checked against GOV.UK on 14 August 2026
Short answer
Correct — no penalty points for late quarterly updates in the 2026 to 2027 tax year. Late tax returns and late payments are not covered.
HMRC has confirmed a first-year concession, but it is narrower than the way it is usually repeated. It covers one thing only: penalty points for late quarterly updates in 2026 to 2027.
What is covered
Covered
Penalty points for late quarterly updates, tax year 2026 to 2027 only.
What is not covered
Late tax returns. Penalty points still apply for a late tax return in 2026 to 2027.
Late payment. Late payment penalties apply as normal, and late payment interest is charged from the first day your payment is late.
The obligation itself. You still have to keep digital records and send the quarterly updates. HMRC's guidance is explicit that you cannot submit your tax return until your quarterly updates are sent.
The separate 30-day grace on payments
In your first year of the new penalties you get 30 days from the payment due date to either pay in full or contact HMRC to set up a payment plan, before penalties start. After your first year that drops to 15 days. You only get the 30-day period once — if you volunteered and are now required to use MTD, you continue on 15 days.
What happens from 2027 to 2028
Late quarterly updates start carrying penalty points. Four points brings a £200 penalty.
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.