New Self Assessment penalties from April 2027: what changes for everyone

Written by the Quidtrail team · Facts last checked 18 October 2026

The short answer: the government has said that from 6 April 2027 the new points-based penalties for late filing, and the new late payment penalties, will apply to individual Self Assessment taxpayers who aren't in Making Tax Digital, not just to MTD users. If you file once a year, a late return earns a point, and 2 points means a £200 penalty. From April 2027, late payment penalties are 4% of the tax still owed at day 15 and again at day 30 (GOV.UK: Budget 2025 OOTLAR, para 2.46; GOV.UK: MTD penalties).

General information, not tax advice. Some details haven't been published yet (see below). Check with an accountant or HMRC for your situation.

Who it affects

Individuals filing Self Assessment who aren't in MTD. That includes landlords and sole traders under the MTD threshold, people with untaxed income, higher earners and so on. The Budget 2025 document says the new regime will apply to "individual income tax self-assessment taxpayers who are not mandated into Making Tax Digital from 6 April 2027" (OOTLAR 2.46).
MTD users are already on the new penalties from the tax year they joined (GOV.UK).
HMRC's MTD guidance also says that "from April 2027, the new penalties will apply to everyone who submits a personal Self Assessment tax return" (GOV.UK).
Returns for partnerships, trusts and estates and non-resident companies currently stay on the old penalties (GOV.UK). We haven't found any confirmation that this changes in 2027.

Old penalties vs new penalties

	Current Self Assessment penalties	New penalties (annual filer)
Late return	£100 straight away. After 3 months, £10 a day up to £900. At 6 and 12 months, 5% of the tax due or £300, whichever is higher (GOV.UK)	1 point per late return. £200 at 2 points, then £200 for each further late return (GOV.UK)
Late payment	5% of unpaid tax at 30 days, 6 months and 12 months (GOV.UK)	Nothing up to day 15. 4% of the tax owed at day 15, 4% at day 30, then 10% a year from day 31 (from April 2027 rates) (GOV.UK; OOTLAR 2.46)
Interest	Charged on late payments	No change to how interest works (GOV.UK)

First-year grace period: the government says that in their first year under the new system, everyone gets an extra 15 days, so 30 days in total, to pay before a late payment penalty is charged (OOTLAR 2.46).

Payment plans: under the new regime, HMRC pauses late payment penalties from the date you contact it if a payment plan is agreed and you keep to it (GOV.UK).

How points work for annual filers

The points system is designed so that a one-off late return doesn't cost you money, but repeated lateness does. The threshold depends on how often you file: 2 points if you file once a year, 4 for quarterly filers (MTD) and 5 for monthly filers (GOV.UK).

For MTD volunteers, who are also annual filers, HMRC's current guidance says (GOV.UK):

a single point is removed automatically 24 months after the missed deadline
at 2 points, you clear them by filing your next 2 returns on time and sending anything outstanding from the previous 24 months

We expect the same approach for non-MTD annual filers, but HMRC hasn't yet published separate guidance for them.

Which tax return is first?

This hasn't been confirmed on GOV.UK. For MTD users, HMRC's rule is that the new penalties apply from the tax year you join, and earlier years stay on the old rules (GOV.UK). If the same approach is used for everyone else, the first return under the new rules would be for the 2027 to 2028 tax year, due 31 January 2029. We'll update this page when HMRC publishes guidance.

What to do now

Keep filing on time. Under the new rules, a single late return costs a point, not £100. But two late returns within the point-expiry window cost £200, and late payment penalties start much sooner than under the old rules: day 15 rather than day 30.
If you can't pay, contact HMRC before the deadline about a payment plan.
Check whether you'll be in MTD anyway. Landlords and sole traders with qualifying income over £30,000 (based on their 2025 to 2026 return) start MTD in April 2027. See Do I need MTD?

Last checked against GOV.UK on 18 October 2026. Not tax advice.

Frequently asked questions

Is the £100 late filing penalty going away?

For people under the new regime, a late return earns a point instead, with £200 at the threshold (GOV.UK). The current £100 penalty still applies to returns under the old rules (GOV.UK).

How many points before I pay £200?

2 if you file once a year, 4 if you're in MTD and send quarterly updates (GOV.UK).

Are late payment penalties going up?

Yes. They rise to 4% at day 15 and day 30 from April 2027, up from 3% (OOTLAR 2.46; GOV.UK).

Sources

Facts last checked: 18 October 2026.