Making Tax Digital penalties: your guide to the new rules

Filing frequency	Points threshold (number of points that will trigger a £200 fine)	Good compliance period (to reset points)
Annual	2 points	24 months
Quarterly	4 points	12 months
Monthly	5 points	6 months

Payment timing (in relation to deadline)	Penalty incurred	Notes
Within 15 days	No penalty	Interest still applies
Within 16-30 days	3% of outstanding tax bill	Interest continues to accrue despite penalty
Longer than 31 days	Additional 3% (total penalty of 6%)	Plus daily interest at HMRC’s late payment rate
Time to Pay agreement	Penalties are usually halted	Must be agreed with HMRC before penalties apply