In this section:
- Check you're paying the right tax
- How to correct mistakes in your tax
- Tax when starting, leaving or retiring from work
- Reporting changes that might affect your tax
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 us know about any changes right away so that we can work out whether you need to pay extra or less tax. By contacting us early you can avoid paying too much tax or owing tax at the end of the year.
Changes you must tell us about
You'll need to tell us if you:
- get married or form a civil partnership
- start getting a second income (or third, or more)
- 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 us 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 so 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:
- you are claiming MCA
- either of you claims Blind Person's Allowance and some or all of this was transferred to the other spouse or civil partner
Read more about Blind Person's Allowance
Starting/stopping self-employment
You must tell us that you're self-employed within three months of starting or we may charge a £100 penalty.
If you stop being self-employed let your Tax Office know as soon as possible.
Find out about tax for the self-employed and how to register
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 us about any company benefits you get until the end of the tax year, unless it's a company car. We'll 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. We can change your tax code and make sure you don't pay too much tax.
Read more about company benefits in your tax code
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. We'll send you a form P161 Pension Enquiry to fill in and we'll want to know:
- your date of birth so that we can give you your correct allowances
- how much your State Pension is and the date you'll start getting it
- your total expected income for the tax year in which you will first draw your pension
More about tax on your State Pension
Why it's important to fill in your Pension Enquiry form
Starting/stopping to get 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 we can adjust your tax code to make sure you always pay what's due.
How to report changes to your income
If you're on PAYE (Paye As You Earn) but don't normally complete a Self Assessment tax return
Let your Tax Office know about changes to income - even if you've received the income outside your job or pension and it's not dealt with through PAYE , for example rental income.
We may be able to change your tax code so that you pay the right amount of tax. If we do this you'll get a PAYE Coding Notice explaining the changes to your code.
In some cases we may ask you to complete a tax return and pay any extra tax through Self Assessment.
If your taxable income has gone down you may be due a refund.
Understanding your PAYE Coding Notice
Find out more about other income in your tax code
If you don't normally complete a tax return and you're not on PAYE
If an increase in income takes your taxable income above your Personal Allowance and any Blind Person's Allowance you're entitled to you must contact your Tax Office.
You may need to complete a tax return and pay any tax you owe through Self Assessment.
Find out about the Personal Allowance
Find out about Blind Person's Allowance
If you already complete a tax return
If you have or expect a significant decrease in income you can let your Tax Office know right away - they may be able to adjust your 'payments on account' to reflect the revised amount.
Learn more about the ways you can pay Income Tax
