Changes in your personal life, address or income can affect how much tax you pay and the allowances or benefits you receive. Keeping HMRC informed helps reduce the risk of an incorrect tax code, an unexpected bill or an overpayment.
Changes to Your Personal Details
You should tell HMRC if you change your name or move home. Wait until you have moved before updating your address. You can usually report these changes through your personal tax account or the HMRC app. If you complete a Self-Assessment tax return, HMRC will also update the details connected with it. Find out how to update your personal details through HMRC.
Relationship and Family Changes
Tell HMRC if you marry, form a civil partnership, divorce, separate or stop living with your partner. Reporting the change promptly helps HMRC apply the correct tax treatment.
If you receive Child Benefit, you must report relevant family or relationship changes to the Child Benefit Office separately. This includes getting married, entering a civil partnership or starting to live with a partner. Read the HMRC guidance on relationship and family changes.
You should also contact HMRC if your spouse or civil partner dies. Tell them about the death and any resulting change to your income. The Tell Us Once service may help you notify several government organisations after a death.
Changes to Your Income
Your employer or pension provider will normally tell HMRC when your employment or pension income changes. However, you remain responsible for reporting other changes to your taxable income.
You may need to contact HMRC if you start or stop receiving income from self-employment or property. You should also report relevant changes involving taxable benefits, company benefits such as a company car, or income that takes you above your Personal Allowance.
HMRC may also need to know about gains from selling shares or property that is not your main home. Income arising from inherited property, money or shares can also create tax responsibilities. Check which income changes you must report.
Self-Assessment Payments on Account
If you make Self-Assessment payments on account and expect your tax bill to fall, you can ask HMRC to reduce them. This may apply when your profits or other income decrease, your tax relief increases or more tax will come from another source.
Estimate your expected liability carefully before requesting a reduction. If you reduce the payments too far and your final tax bill exceeds your estimate, HMRC may charge interest on the shortfall. Review the guidance on reducing payments on account.
Why Prompt Reporting Matters
Updating HMRC as soon as possible helps keep your tax records accurate. Depending on the change, HMRC may adjust your tax code, request a Self-Assessment return, issue a refund or calculate additional tax.
Different taxes and benefits may require separate notifications. Reporting a change for Income Tax does not always update your Child Benefit or business tax records.
Unsure whether HMRC needs to know about a change? Get in touch with Cobble today for clear, practical tax advice.