On 28 October 2026, the Low Incomes Tax Reform Group (LITRG) welcomed the publication in the Autumn Budget 2026 documents confirming that taxpayers joining Making Tax Digital (MTD) for Income Tax from April 2027 will benefit from a temporary easement from late submission penalties during their first year in the regime. This mirrors the easement granted for the initial MTD cohort (April 2026 joiners). The easement applies to the first four quarterly updates and the final declaration for the 2027/28 tax year.
Key Takeaways
- First-Year Penalty Relief: No late submission penalties for the first four quarterly updates and the end-of-period statement for 2027/28 joiners.
- Late Payment Penalties Still Apply: The easement does not cover late payment penalties; interest on late paid tax remains chargeable.
- Digital Readiness Encouraged: LITRG urges taxpayers and agents to use the easement period to embed digital record-keeping rather than delay compliance.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement