HMRC has published a guide to penalties for those joining MTD for income tax in 2026 and 2027.
It should be noted that at the time of writing there is an apparent error in the paragraph of the guide headed “When late payment penalties apply”.
In the table, under the heading “Penalties for 2027 to 2028 tax year”, the penalty rates for “Payment 31 days or more late” should both be 4% (according to para 2.46 of the Overview of tax legislation and rates (OOTLAR) published on 5 December 2025). HMRC web posting, 12 March 2026
