Does a late MTD update still count if you catch up in time
During the 2026/27 soft landing, a late quarterly update earns no penalty point at all, whether or not you catch up before the next deadline. Outside it, or for the Final Declaration which it never covers, catching up doesn't erase a point already earned.
During the 2026/27 soft landing
For the April 2026 cohort's first year, late quarterly updates earn no points at all. This covers quarterly updates only, in the 2026/27 tax year only. It does not cover the Final Declaration, which earns points from day one, and it does not cover late payment.
Outside the soft landing
One missed deadline earns one point, whether or not you file the next update on time. Catching up is always worth doing, but it does not retroactively remove a point you've already earned for the one you missed.
How points actually go away
Two separate mechanisms remove points, neither of which is "catching up next quarter." Each point expires on its own, roughly 24 months after the deadline it was earned for. HMRC counts this in whole months, not to the exact day. Separately, once you reach the 4-point threshold, a reset needs both 12 months of on-time quarterly updates and Final Declarations, and everything outstanding from the previous 24 months filed.
Common questions
If I catch up next quarter, does the point for the one I missed go away?
No. Filing your next update on time does not undo a point already earned for a missed one. Points only go away through automatic expiry or the threshold reset described above.
Does the 2026/27 soft landing mean I never get a point for a late quarterly update?
Only for the 2026 to 2027 tax year, and only quarterly updates, for the April 2026 cohort. Every year after that, and the Final Declaration in any year, works on the normal points system.
Is catching up still worth doing even if it does not erase a point?
Yes. Staying on time from here protects you from earning further points now, and helps you meet the 12-month on-time requirement if you ever do reach the reset threshold.
Does paying late work the same way as filing late?
No. Late payment is a completely separate track with its own percentage-based charges, not penalty points. Points are about submission deadlines only.