If your circumstances change
After signing up for Making Tax Digital for Income Tax, you may have a change in your circumstances that you need to report to HMRC.
You’ll be able to report most changes using your existing HMRC online services, or by contacting the dedicated customer support team.
Adding a new income source
To include a new source of self-employment or property income, add it to your HMRC online services account.
You’ll need to provide:
- Details about your self-employment or property income source
- Your start date (if within the last 2 years)
- Your accounting method (this should be the same method used for all income sources)
After adding it in HMRC, check Calceum to make sure the business details have been updated. You may need to refresh your connection. 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, you still need to report it using Calceum before you submit your tax return. If you’re not able to report your new income source through compatible software, you’ll need to opt out of the testing phase.
Ceasing an income source
You can use your HMRC online services account to cease a source of self-employment or property income by entering the date the income source stopped.
After you’ve notified HMRC, you won’t need to send any quarterly updates once the business has ended.
Changing your software
You can change the software you use for Making Tax Digital for Income Tax either after the end of the tax year or during the tax year.
You still need to store your digital records for the correct length of time if you change your software. Make sure you can access your digital records from previous tax years.
Changing after the end of a tax year
You don’t need to import your digital records from previous tax years into your new software. However, you do need to store them securely and be able to access them.
Changing during a tax year
If you use software that creates digital records and change during a tax year, you’ll 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 bridging software that connects to your records, you will need to link your new software to your record-keeping software.
Changing your tax agent
If you change your tax agent, you’ll need to:
- Request your digital records from previous tax years
- Store your records securely and be able to access them
- Make sure your new tax agent is authorised to act for you and use Making Tax Digital for Income Tax on your behalf
- Ensure your new tax agent has access to your previous records
Opting out during the testing phase
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 no longer need to send quarterly updates for self-employment or property income
- Updates you’ve sent 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.
To opt out, use your HMRC online services account. Go to View deadlines and Manage how you report to inform HMRC you wish to opt out.
If you’re an agent, you’ll be able to do this once you’re authorised and can access your client’s HMRC online services account.
Adjusting your payments on account
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. Do this in your HMRC online services account under What you owe and Adjust payments on account.
Amending a tax return
If you’ve submitted a tax return using Calceum and are within the amendment window, contact the HMRC customer support team to discuss how to make an amendment.
If you submitted a paper or online tax return for a previous year, follow the guidance to make changes for Self Assessment tax returns.
If you sign up during the tax year
If you sign up after the tax year started, you can either:
- Catch up now with all digital record keeping and quarterly updates
- Start keeping digital records from the date you signed up and update earlier records later
All digital records must be created and quarterly updates sent before submitting the tax return (due by 31 January following the tax year).
For example, you may choose to catch up later if you do not normally do record keeping until the end of the tax year.
Those who have signed up early to the testing phase won’t receive penalties for late quarterly updates for the 2025 to 2026 tax year. Read more information on the penalties that will apply if you use the service.
If you choose to catch up later
You can send nil returns for earlier update periods that ended before you signed up. Once you create digital records, they’ll be added to the next quarterly update you send.
If you create your digital records after the end of the tax year, you’ll need to resend your fourth quarterly update.
If you become digitally excluded
You may become digitally excluded if your circumstances change. For Making Tax Digital, digitally excluded means it’s not reasonable for you to use compatible software to keep digital records or submit them to HMRC.
If you think you’ve become digitally excluded, find out if you can get an exemption.
If you signed up voluntarily and have become digitally excluded, you should opt out using your HMRC online services account.