UK HMRC Sets Daily £10 Penalties for Late Tax Returns, Warns of August MTD Deadline

HM Revenue & Customs (HMRC) announced that households that failed to file their Self Assessment tax returns by the 31 January 2026 deadline will face an initial £100 penalty, followed by daily fines of £10 for each day the return remains outstanding, up to a maximum of £900. After six months, an additional charge of 5% of the tax owed or £300 (whichever is greater) will be applied, with a further 5%/£300 charge after 12 months.

In a related update, HMRC highlighted that only about 282,000 of the 864,000 individuals and landlords required to register for Making Tax Digital (MTD) for Income Tax have done so. The authority set an August 7 2026 deadline for the remaining eligible taxpayers to enrol, warning that failure to register could lead to future penalties and a heavy filing burden, as quarterly digital submissions will be required alongside the final annual declaration.