Sole Trader Registered address

[MWM1]

I run a small sole trader business on the side of my 9-5 employed work. I am registered as a sole trader with HMRC and my address (which is also on my letterheads) is my home address.

For security reasons, I'd rather not have my address as my personal home address. Can I use any registered address service - where you pay £x per year and they forward mail to you - or do I have to use my home?

Also, most registered address services are London based, whereas I live in the North. As I serve customers from all over UK is there any benefit/disadvantage to having an address in London?

I just want to give a more professional appearance to my company whilst not shouting about where I live.

 

[Ashley_Price]

Welcome to UKBF

I would suggest keeping your home address for HMRC (they have certain regulations on this anyway) but then using a registered address for your business.

There is certainly no problem with doing this, and in fact a friend of mine uses a virtual address at a nearby business centre, as she also trades from home.

Depending on your business though, you might want to put "Visitors by appointment only", so you don't get clients turning up at the virtual address randomly ("I was just passing and thought I'd pop in") and expecting to see you.

 

[MWM1]

Thank you very much for that. If I can keep home address for HMRC and just a separate registered address, that'd be ideal. Would I need to inform HMRC? Also, my bank account is done in my business name but home address - like HMRC could that stay as it is or would that need to change to my registered address?

There are some good value addresses (e.g. £25/yr for a registered address) so it seems a good way of doing it - plus then my Google business listing wouldn't show my home.

 

[Ashley_Price]

You're getting the term "registered address" mixed up. The term "registered address" is usually for limited companies, they have to have an address where official documents and letters can be delivered to, even if they trade from somewhere else.

So, don't think "registered" think "virtual".

Don't worry about the bank and the HMRC, leave your home address for them (and anything else that's official).

Then you have the "virtual address" set up for your business address that you put on your letterheads, etc.

 

[MWM1]

Ah thank you! The term virtual makes more sense now. If I keep HMRC and banking with my home address I'm likely to get very few letters (maybe from google business for verification and that's about it) so that will mean I can cut costs a bit too in mail forwarding.

In terms of registered (sorry, virtual! ) address, do you think it matters if it's near my actual home or if it's in, say, London?

 

[Ashley_Price]

In terms of registered (sorry, virtual! ) address, do you think it matters if it's near my actual home or if it's in, say, London?

It depends on your business. It sounds like you're not expecting to get visitors, so from the point of view it's not a problem. But then if you want to look like you're in London, are you going to get a London virtual telephone number as well?

But then on the other hand, some people like dealing with local firms, so again depending on your business, you might find people within a few miles of you won't use you because they assume you're in London.

Although I can deliver office supplies right across the UK, when I mention to firms in my immediate geographical area that we're based in Lewes, I often get a much better response from them. I had a Lewes-based business initially say to me "We're perfectly happy with our current suppliers", but when I replied "That's okay, I was just calling to introduce myself as we are based in Lewes as well", they said "Oh, right you're in Lewes as well? Okay, send me over your details." They're now a customer.

 

[Mr_P]

Also a a sole trader never refer to your company. It is your business not company.

 

[arnydnxluk]

In terms of registered (sorry, virtual! ) address, do you think it matters if it's near my actual home or if it's in, say, London?

Nope. It only matters if you want to make a certain impression on people who may see the address (although realistically it's often obvious when you're using a virtual office address).

 

[MWM1]

Thank you all for your advice. It's very useful. I'll do some searching and see what I can find. Unfortunately local virtual offices are quite expensive whereas some London ones are as little as £25/yr. I'll have to weigh up the advantages/disadvantages. But, thank you very much. You've helped me a lot

 

[Ashley_Price]

Unfortunately local virtual offices are quite expensive whereas some London ones are as little as £25/yr

Have you checked that includes mail forwarding? Some only allow you to collect the mail, they don't forward it on.

 

[MWM1]

Yes - some offer mail forwarding of upto 10 items/year - other than bank statements (which will still come to my home address) I only get 2 or three these days. But I'll make sure I check when I am searching.

 

[Ashley_Price]

Also a a sole trader never refer to your company. It is your business not company

A bank manager also said you can refer to it as a "firm".

 

[MWM1]

In looking at virtual addresses I came across a few companies that offer either mail forwarding, or scanned mail - where they open and scan your mail and send you the link. Not that I'd get anything too vital sent to me, but is it a generally common thing or is that to be avoided?

 

[Ashley_Price]

Not that I'd get anything too vital sent to me, but is it a generally common thing or is that to be avoided?

I believe there are several firms that offer this, usually, I believe for people who live abroad, as it's quicker than waiting for the forwarded post to arrive.

 

[Gecko001]

The business does not exist as an entity. As a sole trader you are personally responsible for all financial dealings in connection with your business activities. This means that if you owe someone money in connection with your business, they will need an address where they can contact you. This address has to be put on invoices. I think an accommodation address can be used, but may be looked upon as a little suspect by people and businesses with whom you do business.

 

[SimplyMyLove]

Surely you can use these virtual address services, and many of them also provide mail forwarding service at a small charge. However, if you look to expand your business in the future, no matter how small it is now, you might feel like to have the business registered at a physical address that you have some control on, then use a virtual address for the contact details.

 

[Gecko001]

Surely you can use these virtual address services, and many of them also provide mail forwarding service at a small charge. However, if you look to expand your business in the future, no matter how small it is now, you might feel like to have the business registered at a physical address that you have some control on, then use a virtual address for the contact details.

Think of it this way. We all do business with sole traders all the time, whether it is the small builder, solicitor, architect, or ordering something from ebay or other online business. If you have a dispute with that business and do not get satisfaction, you have the right to take that person to court. Thus you need an address for your solicitor to send the rit to. It is as simple as that.

 

[Gecko001]

Think of it this way. We all do business with sole traders all the time, whether it is the small builder, solicitor, architect, or ordering something from ebay or other online business. If you have a dispute with that business, it is in fact a dispute with the sole trader, and if you do not get satisfaction, you have the right to take that person to court. Thus you need an address for your solicitor to send the writ to. It is as simple as that.