HMRC to introduce new ‘penalty points’ system in 2026
HMRC’s new ‘penalty points’ system for 2026 – how it will work
- HMRC is introducing a new 'penalty points' system for taxpayers, replacing the previous automatic fine structure for missed deadlines.
- The system will initially be trialled this month with around 100 taxpayers as part of the Making Tax Digital scheme.
- For quarterly submissions, four penalty points will result in a £200 fine, while for annual submissions, two points will trigger the same penalty.
- Full implementation begins in April 2026 for sole traders and landlords with annual income over £50,000, gradually expanding to lower income thresholds in subsequent years.
- HMRC states the new system is 'simpler and fairer', designed to penalise persistent non-compliance rather than occasional missed obligations.
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