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Effect of changes on tax credits or benefits

Any change in your income or circumstances may affect your entitlement to benefits or tax credits. Read more in the pages below.

• Changes that affect your benefit

• Changes at home and work - keep your tax credits up to date

The rest of this page deals with reporting changes that affect your tax.

Change of address

If you move, let HMRC know as soon as possible. This will prevent the loss or late arrival of:

You may also avoid automatic penalties and surcharges for sending in your tax return late or paying your tax late because the forms went to the wrong place.

Your employer or payroll will not tell HMRC that you have changed address.

• Find out how to report a change of name or address on the HMRC website Opens new window

Changes to income

If you're on PAYE (Paye As You Earn) but don't normally complete a tax return

Let HMRC know about changes to income not dealt with through PAYE. For example changes to savings income or income you receive outside your job or pension, or starting to get rental income.

HMRC may be able to change your tax code so that you pay the right amount of tax through PAYE.

However in some cases HMRC may ask you to complete a tax return and pay extra tax through Self Assessment. They will write and let you know if they need you to complete a separate tax return.

If your taxable income has gone down you may be due a refund.

• More about who needs to complete a tax return

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 HMRC.

You may need to complete a tax return and pay any tax you owe through Self Assessment.

• Find out whether you should be paying Income Tax

If you already complete a Self Assessment return

If you have or expect a significant decrease in income you can let HMRC know right away; they may be able to adjust your payments on account down to reflect the revised amount.

• Use form SA303 to claim to reduce your payments on account Opens new window

Gains above your Capital Gains Tax allowance

You must tell HMRC if you make a capital gain which is greater than the Capital Gains Tax allowance for the current tax year. You may need to complete a tax return if you don't do so already. This might apply, for example, if you sell shares or a second property.

• More about Capital Gains Tax and the Capital Gains Tax allowance

Start or stop receiving state benefits

If you start or stop getting state benefits, such as Jobseeker’s Allowance, Carer’s Allowance or Employment and Support Allowance, it may affect your tax bill.

The sooner you get in touch with HMRC and tell them, the sooner they can adjust your tax code to make sure you always pay what’s due.

• More about which state benefits may affect your tax

Your company benefits change

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.

To avoid a large tax bill at the end of the year, you can tell HMRC about any other taxable benefits you start to get right away (for example medical insurance or loan subsidies). You can also report changes to existing benefits. HMRC will adjust your code number and start collecting the extra tax through PAYE sooner.

• More about tax on company cars and other benefits

Contact HMRC

Who you need to contact within HMRC depends on your circumstances.

• Check HMRC contact points Opens new window

More useful links

• Working and paying tax

Useful contacts

• Money, tax and benefits contacts