We propose a theoretical approach for calculating effective electric and magnetic properties of composites, with field dependent restructuring of the filler. The theory combines the effective medium approximation, extended to a field-dependent (variable) percolation threshold, with an approximate treatment of the nonlinearity of material properties. Theoretical results are compared with experiments on magnetorheological elastomers, which in the context of investigated phenomena are often called magnetoactive elastomers (MAEs). In MAEs with soft polymer matrices, the mutual arrangement of inclusions changes in an applied magnetic field. This reorganization of the microstructure leads to unconventionally large changes of electrical and magnetic properties. The obtained theoretical results describe observed phenomena in MAEs well. For the magnetodielectric effect, qualitative agreement between theory and experiment is demonstrated. In the case of magnetic permeability, quantitative agreement is achieved. The theoretical approach presented can be useful for the development of field-controlled smart materials and design of intelligent structures on their basis, because the field dependence of physical properties can be predicted. •The method of movable percolation threshold is proposed.•The effective properties of composites, with the restructuring of the filler, are calculated.•The mechanism of magnetodielectric effect in magnetoactive elastomers is proposed.•The nonmonotonic field dependence of magnetic permeability in magnetoactive elastomers is explained.