If your circumstances change

Find out what you need to do to keep your details up to date and when you need to tell HMRC about a change.

After signing up for Making Tax Digital for Income Tax, you may have a change in your circumstances.

You’ll need to tell HMRC about the changes. This may be a one-off notification, or to report new information relating to a change.

There are some changes you must tell HMRC about using your online account. For example, if you need to add or cease a source of self-employment income, property income or both. There are other changes that you do not need to tell HMRC about, such as changing your software, but you may still need to take some action.

You’ll be able to report most changes to us using your HMRC online services account or agent services account.

Adding a new self-employment or property income source

When to add a new source of self-employment or property income source

You only need to add income you earn as a sole trader. You do not need to add partnership income, income from a limited company or employment income, but you will still need to include those in your tax return if you have them.

You do not need to start keeping digital records or sending quarterly updates for a new self-employment or property income source straight away, even if you are already using Making Tax Digital for Income Tax. You only need to do this after you have sent a tax return which included the income for the first time. This means you will:

  • not need to create digital records or send quarterly updates for that income source until the start of the next tax year
  • report the income in your tax return using your compatible software

For example, if you need to use Making Tax Digital for Income Tax and start a new self-employment or property income source on 1 July 2026, you will include this income for the first time in your 2026 to 2027 tax return. You must submit your 2026 to 2027 tax return by 31 January 2028. After you have submitted that tax return, you will need to start creating digital records and sending quarterly updates for this income source from 6 April 2028.

You can still choose to report the new income in Making Tax Digital for Income Tax from when the income starts. To do this, you can select the option in your software to switch to sending quarterly updates from the date the income starts.

If you are a landlord

If you’re already a UK landlord and start renting out another property in the UK, this is not treated as a new income source. This is because the property will form part of your existing property business. Your: 

  • UK properties are treated as one ‘UK property business’ — this includes UK furnished holiday lettings income from April 2025
  • non-UK properties are treated as one ‘foreign property business’

Where the new property forms part of an existing property business, you need to create digital records for any related income and expenses from when you start to receive rent from the property. This applies to both UK and foreign property businesses.

How to add a new self-employment or property income source

If you start a new self-employment or property income source, you’ll need to: 

  1. Check that your compatible software can report your new income source. 

  2. Add it to your HMRC online services account.

If you’re an agent, this can be done through your agent services account.

You will be asked for details about your new income source, such as the start date. For property income sources, this is the date you started to receive rental income.

After you have added the income source, you should check your software to make sure the new income source is there. If it is not there, you may need to refresh it in your software. You can then send quarterly updates for your new income source.

Adding other income sources

There are some records you do not need to keep digitally but can choose to do so. Keeping these records digitally can help you maintain a more complete view of your tax affairs, as your estimated tax bill will include the income source.

If your compatible software has the option, you can choose to report other income sources during the tax year, such as income from:

  • employment (PAYE)
  • a partnership
  • dividends (including those from your own company)
  • state, private and occupational pensions

If you choose not to report these income sources during the tax year, you must include all of them in your tax return before you submit it using your software.

Ceasing income sources

Ceasing a self-employment or property income source

Ceasing a self-employment or property income source means that your business has stopped trading or you have stopped receiving income from properties. 

You can use your HMRC online services account or agent services account to tell HMRC when this happens by entering the date the business or property income ended. You must tell HMRC by the quarterly update deadline for the period the business or property income stopped. The ceased source will then be included in your tax return.

Ceasing a single self-employment or property income source

If only one of your income sources ceases, you must tell us using your HMRC online services account or agent services account and complete all outstanding quarterly updates for that source from when the income was active. You will: 

  • no longer receive quarterly update reminders for that source, if you have opted to receive digital communication
  • still receive a reminder to submit your tax return for the year 

You must continue creating digital records and sending quarterly updates for any continuing sources of self-employment or property income. 

For example, if your self-employment or property income ceased in May 2026, you must send the quarterly update due by 7 August 2026, but you will not need to submit any further quarterly updates for that income. The income from the ceased source will then be included in your 2026 to 2027 tax return.

If you stop renting out a UK property but still rent out other properties, then your property business is continuing, and you do not need to tell HMRC.

Ceasing your only source of self-employment or property income

If you are ceasing your only self-employment or property income source, you must: 

  • use your HMRC online services account or agent services account to tell us the date the income source ceased 
  • send the final quarterly update for the period that includes the date the income ceased 
  • include the ceased income in your tax return — you must still send your tax return for the tax year the income ceased, using Making Tax Digital software

After the tax year in which the income ceased, you will not need to use Making Tax Digital for Income Tax unless you start a new qualifying self‑employment or property income source. You will still need to store your digital records to support your tax return. You can find out how long to keep your records.

Ceasing other income sources

If you stop receiving other types of income, such as from employment, a pension, dividends or savings interest, you do not need to take any action in your HMRC online services account or agent services account.

You must tell us about these changes through your tax return for the tax year the income stopped.

Acting on behalf of someone who has died

If someone who has been using Making Tax Digital for Income Tax dies, then their obligations stop. Their personal representative must tell HMRC about the death and must make sure any outstanding tax returns are completed.

For more information, read returns for someone who has died.

The personal representative does not need to use Making Tax Digital for Income Tax on behalf of the person. This means they do not need to:

  • create digital records
  • send any outstanding quarterly updates
  • submit any returns using Making Tax Digital software

Amending your tax return

If you need to make a change to a tax return after you have submitted it, you will need to use your compatible software. You can amend a tax return within 12 months of the submission deadline.

When you make amendments in your software, your HMRC online services account or agent services account will be updated, and the changes will be reflected in an updated tax calculation.

If you need to change information before you submit your tax return, you should correct your digital records instead of making an amendment. You can find out what to do in the ‘Correcting your digital records’ section of the create digital records guidance.

If you submitted a tax return in a previous tax year and you were not using Making Tax Digital for Income Tax, use the guidance to make a change to your return.

Opting out

If you have been using Making Tax Digital for Income Tax and your qualifying income has fallen below the relevant qualifying income threshold for 3 consecutive years, then you can choose to either:

  • continue using Making Tax Digital for Income Tax voluntarily
  • opt-out of Making Tax Digital for Income Tax and submit a Self Assessment tax return instead

HMRC will use the information from your fourth quarterly update for the third year to check if you can opt out. HMRC will use the income information in this fourth quarterly update to confirm that your qualifying income has been below the threshold for 3 consecutive tax years. If it has, you will be able to opt out of Making Tax Digital for Income Tax.

For example, if you need to start using Making Tax Digital for Income Tax in April 2026, you will be able to opt out after the end of the 2029 to 2030 tax year, if your qualifying income is:

  • £30,000 or less based on your 2025 to 2026 tax return
  • £20,000 or less based on your 2026 to 2027 tax return
  • £20,000 or less based on your fourth quarterly update for 2029 to 2030

You will need to have sent your fourth quarterly update for the 2029 to 2030 tax year by 7 May 2030. You would then not need to use Making Tax Digital for Income Tax for the 2030 to 2031 tax year.

If you are eligible to opt out, the option will appear in your HMRC online services account or agent services account. You will not need to wait until you send your tax return for the third year to opt out.

If you choose to opt out:

Using Making Tax Digital voluntarily

Reporting a new income source

If you are using Making Tax Digital for Income Tax voluntarily, then you can also choose to start creating digital records or sending quarterly updates for any new income source straight away.

If you choose to include the new income source, you must add it to your HMRC online services account.

If you prefer not to include the new income source in Making Tax Digital straight away, you must still report the income in your tax return.

Penalties for volunteers

You will not receive penalties for late quarterly updates while you are volunteering to use Making Tax Digital for Income Tax. Find out about penalties for Making Tax Digital for Income Tax volunteers.

If you become exempt

If you signed up for Making Tax Digital for Income Tax but have become exempt, you should opt out using your HMRC online services account.

After signing up for Making Tax Digital for Income Tax, you may become eligible for an exemption because your circumstances have changed. This could also happen if you had signed up voluntarily and want to continue using Making Tax Digital for Income Tax.

For example, you may become digitally excluded meaning it’s not reasonable for you to use compatible software to keep digital records, send quarterly updates or submit your tax return.

You should find out if you can get an exemption from Making Tax Digital for Income Tax.

If HMRC has confirmed you’re exempt:

  • you will no longer need to create digital records or send quarterly updates
  • you must still report income and gains in a tax return
  • your penalties will change

If you become insolvent

If you continue to receive self-employment or property income after entering into a formal insolvency procedure, you will need to keep using Making Tax Digital for Income Tax.

If you have late submission penalty points and become insolvent, HMRC will reset your points total to zero.

If you continue to receive self-employment or property income after the tax year you became insolvent, penalty points and penalties will apply to you if you miss a submission or payment deadline as normal.

You can get help if you become insolvent.

Changing your compatible software

You can change the software you use for Making Tax Digital for Income Tax at any time.

You may choose to use different compatible software for different income sources.

If you change your software, you will still need to store your digital records for at least 5 years from the submission deadline for each tax year.

For example, your 2026 to 2027 tax return must be submitted through compatible software by 31 January 2028. You must keep the digital records for the tax year until at least 31 January 2033.

You should also make sure you can access your digital records from previous tax years. For example, you may need to export your digital records from your old software and store them securely.

If you need help with issues relating to your software, contact your software provider. 

If you change your software after the end of a tax year 

You need to store your digital records from previous tax years securely and be able to access them.

You do not need to import your digital records from previous tax years into the new software.

If you change your software during a tax year

If you use software that works with Making Tax Digital for Income Tax to create digital records, you will need to either:

  • import your digital records into your new software for the current tax year
  • recreate the records in your new software

If you use software that works with Making Tax Digital for Income Tax to connect to your records (bridging software) you will need to link your new software to your record-keeping software.

You must remove the link between your old bridging software and your records.

Changing your tax agent

If you change, add or remove a tax agent, digital records from previous tax years will not be transferred automatically between agents. You should make sure you have access to your digital records from previous tax years and store them securely.

You’ll need to make sure that:

  • any tax agent acting for you is authorised to use Making Tax Digital for Income Tax on your behalf
  • you and your tax agent use software that works with Making Tax Digital for Income Tax — speak to your agent for advice on which software to use
  • if you use different software products, these work together to meet your needs
  • the tax agent or agents acting for you have access to the digital records they need, including your previous records
  • if you stop using a tax agent, you remove their authorisation so they can no longer act for you

Find out how to choose agents for Making Tax Digital for Income Tax.