Adjusting Your Self Assessment Tax Return After Changing Your Business Address Mid-Year

If you are a sole trader and change your business address partway through the tax year, you need to ensure your Self Assessment tax return reflects your business details accurately. The tax year runs from 6 April to 5 April the following year, and your business is treated as a single entity for that entire period.

What You Need to Know About Address Changes

HM Revenue and Customs (HMRC) uses the information on your tax return to assess your Income Tax liability. If your business address changes during the tax year, it is important to update HMRC promptly to keep your records accurate. However, when completing your Self Assessment return, you do not need to split your income or expenses by address.

• Notify HMRC of your new business address separately: Inform HMRC of your address change as soon as possible, either through your online account or by contacting them directly. This ensures all correspondence reaches you at the correct address.
• Filing your tax return: Use your current business address in the sections asking for business details on your tax return. There is no requirement to report multiple addresses within the same tax year.
• Record keeping: Maintain clear records showing the dates you operated at each address. This is useful if HMRC requests clarification or if you claim any expenses specifically related to one location.

Practical Example

Suppose you operated your sole trader business from 10 High Street from 6 April until 31 October, then moved to 25 Market Road from 1 November onwards. When completing your Self Assessment tax return for the tax year ending 5 April, you should:

1. Use your latest business address (25 Market Road) in the tax return form.
2. Keep evidence of the move date in your records, such as utility bills or lease agreements.
3. Notify HMRC separately of the address change as soon as you move.

You do not need to divide your income or expenses between the two addresses on the tax return itself, as your business is treated as a single entity for the tax year.

Exceptions and Additional Points

• If you run multiple trades or businesses from different addresses, you may need to report each trade separately. However, for a single sole trader business changing address, one return with the updated address is sufficient.
• Changing your business address does not affect your Self Assessment registration or the deadlines for filing and payment.
• Always keep supporting documents for your records, especially if you claim expenses related to premises or utilities, to demonstrate the period each address was in use.

For the most accurate and personalised advice, or if your situation is complex, you can contact HMRC directly or consult a professional. The official Self Assessment guidance on GOV.UK does not require splitting income or expenses by address but emphasises keeping records and notifying HMRC of any changes.

Official reference: https://www.gov.uk/self-assessment-tax-returns. Always check the latest official guidance. Related forms: Browse our form category.

Important: This article provides general information. Government rules, forms and procedures can change, and this article may not reflect the latest updates. Check current GOV.UK guidance or the relevant authority before relying on it. ITG & Co. is independent and is not affiliated with a government department.