Quick answer
If you’re below the four-point threshold, each penalty point expires 24 months after the deadline you missed. Once you reach four points, they don’t expire individually. To reset them, you need to submit everything on time for 12 months and send any outstanding submissions from the previous 24 months.
Below the threshold
A point is removed automatically 24 months after the missed deadline, as long as you haven’t reached the threshold.
At the threshold
At four points you get a £200 penalty, and another £200 for each further missed deadline. To remove all your points you must:
meet every submission deadline for 12 months
send any submissions that were due in the previous 24 months
What earns a point
Each missed quarterly update deadline (for tax years after 2026/27) and each missed tax return or final declaration deadline earns one point. There are no points for late quarterly updates in 2026/27.
See the full MTD penalties guide.