What are the penalties for a late quarterly update?

One penalty point per missed deadline, and a £200 penalty once you reach four points.

It is a points system rather than a fine each time, so a single late update in a year does not cost anything by itself. Four missed deadlines does, and four is exactly one year’s worth.

HMRC is not applying points for late quarterly updates during the 2026 to 2027 tax year while people find their feet. The updates are still required, and you still cannot file the return without them.

Late payment penalties are a separate matter and have not been softened. The position on updates is on gov.uk.