This tax year, 2026/27, HMRC isn't giving penalty points for late quarterly updates. From 6 April 2027 it does. Every missed deadline is one point, and when you reach four points you get a £200 penalty. Miss another one after that and it's another £200.

That's the whole system. Here's how it plays out.

Four deadlines a year, four points

You send a quarterly update four times a year. Missing one gives you one point. HMRC only gives you one point per deadline, even if you have two businesses and send both late.

The tax return counts too. A late final tax return is a point on the same scale, so it's not only the quarterly updates you need to watch.

So four points isn't a lot. It's one bad year.

A courier's year, as an example

Picture a self-employed courier who starts the 2027/28 year with the best intentions. The receipts for the van go in the door pocket. The invoices from the depot sit in WhatsApp.

  • August 2027: busy season, update sent a week late. One point.
  • November 2027: still no records up to date. Two points.
  • February 2028: the same pile of receipts, now bigger. Three points.
  • May 2028: fourth deadline missed. Four points, and a £200 penalty.

Nothing dramatic happened in that year. The courier just didn't get round to it, four times. That's how most people will get caught.

Is there anything else to pay?

Yes. Late payment is a separate matter. Points are only about sending things in on time. If you send your tax return on time and pay late, HMRC charges penalties and interest on the unpaid tax as well. The rates are on the gov.uk penalties page.

Can the points go away?

HMRC's guidance sets out when points are removed, and it depends on keeping your updates on time afterwards. We'd rather you never collected them. If you've got one already, check your HMRC online account rather than guessing.

Does this apply to me?

If your self-employment and rental income together are over £30,000, you start on 6 April 2027. Over £20,000 you start in April 2028. Our Making Tax Digital page has the full picture.

How to avoid the points

Send each update on time, from records that are up to date. The update itself is short. It's totals for income and expenses since 6 April.

The hard part is having the records ready. It's the 5am start, the full day in the cab, and then a bank app you open once a month. That's where we come in. You send us the photos, and we keep the books and send the updates. Have a look at our bookkeeping service, or the pricing page if you want to see what it costs. If you'd rather talk it through, get in touch and Alex or Anca will answer.

Sources: HMRC, Penalties for Making Tax Digital for Income Tax and Use Making Tax Digital for Income Tax: send quarterly updates. Correct as at September 2026.