When does the £100 late filing fine apply and how does it increase?

HMRC charges an automatic £100 late filing fine immediately after the 31 January deadline if you have not filed. After three months, daily penalties of £10 can apply for up to 90 days. At six and 12 months, there are further penalties of £300 or 5% of the tax due, whichever is higher.

What if I cannot pay my tax bill now?

File your return to stop late filing penalties growing, then pay what you can. You can apply online for a Time to Pay plan for debts up to £30,000, typically over as long as 12 months. Interest continues, but setting a plan helps avoid additional late payment penalties.

Does Making Tax Digital replace the annual tax return?

MTD introduces quarterly updates plus an end‑of‑period statement and a final declaration. The cycle still confirms your yearly position, but submissions are spread through the year. You must keep digital records and use compatible software. The goal is fewer errors and more timely information, not a move to real‑time tax.

Do landlords fall under Making Tax Digital in April 2026?

Yes, if your combined self‑employment and property income is over £50,000. Landlords under that threshold are not required to join in April 2026. HMRC plans to expand to those with income over £30,000 from April 2027. Check for exemptions if you are digitally excluded.

Global Market Insights

UK Tax Deadline Fallout February 2: HMRC Fines, Digital Rules Ahead

ByDanny Kontos February 3, 2026February 3, 2026

The tax filing deadline has passed, and many UK taxpayers now face consequences. If you missed HMRC self assessment by 31 January, the automatic £100 late filing fine applies and can escalate fast. HMRC extended phone and webchat support amid heavy demand, but backlogs remain. From April 2026, Making Tax Digital starts for those with more than £50,000 in self‑employment or rental income. We explain penalties, practical steps this week, and how new digital rules could affect small-business cash flow and drive demand for software and advice.