If your circumstances change
How to add and cease your income sources, adjust payments on account or amend a submitted return.
After signing up for Making Tax Digital for Income Tax, you’ll need to tell us about any changes in circumstances. This may be a one-off notification, or to report new information relating to a change.
You’ll be able to report most changes using your existing HMRC online services, or you’ll need to contact our dedicated customer support team.
To include a new source of self-employment or property income in your quarterly reporting, you should add it to your HMRC online services account. This can be done in the Managing your Income Tax updates section. If you’re an agent, this can be done in the Manage your client’s Income Tax details section.
You will need to provide details about your self-employment and property income sources. This includes your start date — for property income sources, this is the date you started to receive rental income. You’ll also need to confirm which accounting method you will use as this should be the same method used for all income sources.
You should then check your software to make sure the business details have been updated. You may need to refresh it in your software. You can then send quarterly updates which will include your new income source.
If you’re not able to keep digital records of the new income source to include in your quarterly reporting, you still need to report it using your compatible software before you finalise your Income Tax position. If you’re not able to report your new income source through compatible software, you’ll need to opt out of the testing phase.
You can use your HMRC online services account to cease an income or business source. This can be done in the Managing your Income Tax updates section. You can do this by entering the date the business or property income source stopped.
After you’ve notified HMRC, you will not need to send any quarterly updates after the business has ended.
If you’ve signed up for Making Tax Digital for Income Tax voluntarily, you can opt out at any time during the testing phase.
If you choose to opt out, you’ll stop sending quarterly updates for business income and expenses using Making Tax Digital for Income Tax. Updates you’ve submitted will be deleted for the tax year you’re opting out for.
You’ll still need to submit a Self Assessment tax return as usual. You should also find out if and when you need to use Making Tax Digital for Income Tax in the future.
You can use your HMRC online services account to opt out. This can be done in the Managing your Income Tax updates section of the Making Tax Digital for Income Tax service. Go to View deadlines and Manage how you report to inform us you wish to opt out.
If you’re an agent, you’ll be able do this once you’re authorised and can access your client’s online service.
Payments on account are advance payments towards your tax bill (including Class 4 National Insurance if you’re self-employed).
If you know your tax bill will be lower than last year, you can reduce your payments on account. You can do this in your HMRC online services account for Making Tax Digital for Income Tax. Access the What you owe and Adjust payments on account for the tax year sections.
If you’ve submitted a return using your chosen software for Making Tax Digital for Income Tax and are within the amendment window, contact the customer support team to amend your return.
If you submitted a paper or online tax return for a previous year, follow the guidance to make changes for Self Assessment tax returns.