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Reporting changes that might affect your tax

A change to your income or circumstances may affect how much Income Tax you have to pay. It's important to let your Tax Office know about any changes right away so that they can work out whether you need to pay extra or less tax. By contacting your Tax Office early you can avoid paying too much tax or owing tax at the end of the year.

Changes you must tell the Tax Office about

You'll need to tell your Tax Office if you:

  • get married or form a civil partnership
  • start getting a second income
  • become - or stop being - self-employed
  • start or stop getting company benefits - like a company car or medical insurance
  • start getting a company or personal pension
  • start getting the State Pension or other taxable benefits

You'll also have to let your Tax Office know if other income that you get - like savings or rental income - increases or reduces.

All these things and more can affect the amount of Income Tax that you have to pay.  

Marriage or civil partnership where one partner was born before 6 April 1935

Tell your Tax Office if you get married or form a civil partnership and at least one partner was born before 6 April 1935 - you may be eligible for the Married Couple's Allowance (MCA) if you pay tax.  

If you get divorced or your civil partnership dissolves or you separate and you were getting the MCA, you will no longer be eligible. You need to let your Tax Office know.

Death of a spouse or civil partner

If your husband, wife or civil partner dies you need to contact your Tax Office if either of the following applies:

Starting/stopping self-employment

You must tell HM Revenue & Customs (HMRC) that you're self-employed as soon as possible - even if you already fill in a tax return each year. If you don't tell them as soon as you begin self-employment you may have to pay an initial penalty.

If you stop being self-employed let your Tax Office know as soon as possible.

Starting/stopping to receive company benefits

If you start to get taxable company benefits you should tell your Tax Office right away so that you don't get a large tax bill at the end of the year. Employers don't have to tell HMRC about any company benefits you get until the end of the tax year, unless it's a company car.

Your Tax Office will adjust your code number and start collecting all or some of the extra tax sooner.  

You should also tell your Tax Office if you stop getting taxable company benefits. They can change your tax code and make sure you don't pay too much tax.

Starting to receive the State Pension

When you reach State Pension age you don't automatically stop paying Income Tax, but your tax bill may go down. You need to tell your Tax Office - in advance if possible -  when you retire so you don't pay too much tax.

HMRC will send you a form P161 Pension Coding to fill in and they'll want to know:

Starting/stopping state benefits

If you start or stop getting state benefits it may affect your tax bill. The sooner you get in touch with your Tax Office, the sooner they can adjust your tax code to make sure you always pay what's due.

Reporting changes to your income

What income changes you need to report and how you report them depends on your circumstances. Find out what you need to do to report a change by following the link below.

If you change address

If you change address it's important to let your Tax Office know - even if you pay some or all of your tax through PAYE and have already told your employer or pension provider.

Under the Data Protection Act they can't pass on your new address to HMRC.

More useful links

Email scams

Bogus HMRC emails - don't give away your personal details.

 

See also...

 

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