Challenges with using an Accountant for your Registered Office

When setting up a limited company, you must submit several addresses to Companies House. Some appear on the public register, including the company's registered office. A company without a commercial office address may opt to give an accountant's address as the company's registered office.

Although this address protects the owner's privacy, it's not among the best choices. This blog discusses the disadvantages of using an accountant's address and the advantages of using a professional address service as your limited company's registered office.

The Disadvantage of using Accountants for your Registered Office

Using an accountant's address for your registered office may sound like a great choice, since tax notices and filing reminders will be sent to this address. But your accountant isn't legally liable for the company's statutory filing and reporting obligations. Therefore, even if you pay them to complete and return taxes and file the accounts, that's a director's duty.

Before choosing an accountant address for your registered office, consider the following:

1. An accountant isn't a mail handler: your accountant isn't a professional mail handler, so receiving your company's mail isn't their primary focus. This could result in mistakes that could lead to hefty fines for your company.
2. You will lose control: Once your mail is forwarded to your accountant's address, you lose access to the company's government letters. Your accountant or employee will open the statutory correspondence from HMRC or Companies House.
3. Lack of independence: if you change the company's accountant, you must change the registered office. You must also change your registered office details at the Companies House, on the website, and your company statutory. This can be costly and time-consuming.
4. All your mails aren't relevant to your accountant: only a fraction of the mails sent to your accountant are pertinent to their duties. This means the accountant may overlook other necessary correspondence. This could result in missed vital compliance news, filing reminders, and legal notices, which could cause the company to face severe consequences.
5. Over-reliance on the accountant: relying entirely on your accountant to remind you of your reporting obligations, filing deadlines, and other directorial responsibilities is risky. You bear the responsibilities, so you must reduce the chance of forgetting vital information and responsibilities.
6. Costly service: using your accountant's address as the registered office comes with an extra cost. Many accountants charge hourly rates for their services and expertise. So, if you use them as your mail handler, expect to include hidden fees in their charges.

Advantages of using Digital Mail Handling Service as your Registered Office

Using a digital mail handling service provider means you will reap the benefits of registered office address services. Here are the advantages:

1. Professionalism

A professional team will handle the statutory mail sent to your company's registered office. This team focuses solely on receiving scans and forwarding vital mail to the client.

2. Independence

You will have independence and maintain professional boundaries from your accountant. If you change your accountant or decide to do your accounting and bookkeeping yourself, you won't need to change the registered office.

3. Consistency

Even with commercial office space, relocating requires updating your address on various platforms like Companies House, email signatures, your site, and business stationery. This process is expensive and consumes time. Opting for a digital mail handling service alleviates this concern, as you won't need to update the address regardless of how often you move business offices.

4. Cost saving

Digital mail handling services are cheaper than leasing an office premise. Even if your company uses co-working office services, they are still more expensive than digital mail handling services. Additionally, you will only pay your accountant's accountancy fee instead of including the mail handling fee.

5. Retain control

With a digital mail handling service, you will retain control of your statutory correspondence. This eliminates the risk of missing deadlines, fines, penalties, and reputational damage that could have occurred if your accountant overlooked your mail. You don't have to depend on your accountant to manage your mail or notify you about crucial matters needing your attention.

6. Immediate access

Once the mail is delivered to your registered office, it is scanned and sent to you through your customer portal. This makes it easy to access mail from anywhere, so you won't miss any correspondence from Companies, HMRC, or any other government agency.

7. Corporate image

A well-known registered address brings prestige and enhances your professional credibility, even if your company operates from a different location. Associating your business with a prominent address allows you to project a superior corporate image to customers and suppliers.

8. Continuity

Using the same professional address provider as your business registered office and service address will ensure all your important mails are sent to one location, handled by a professional mail team, and forwarded to your online portal.

For which Addresses can I use Professional Address Services?

Many professional address services offer address services to companies for:

1. Registered office address: Companies without commercial office premises may use this address during company formation and to receive all official correspondence.
2. Service address: You need to provide your service address. Instead of giving your residential residence, you may use a professional address service for official correspondence. Company secretaries, PSCs, and shareholders can also use the address.
3. Business address: you can also use a professional address service provider for business correspondence purposes.

Which Addresses Must I Provide When Forming a Limited Company?

Here are the addresses to present when forming a limited company.

1. Registered office address

This is the official address for a limited company, which is required when registering with Companies House. It's used for all official documentation and correspondence, and it must be displayed on company stationery, emails, and websites.

Although you can use your director's residential address as a registered office, the address will be published publicly on the Companies House register. Once you've submitted your home address as a registered office address, you can't remove it from the public record.

2. Directors service address

Every director must provide their service or correspondence address to Companies House. This is a mandatory requirement by the  Companies Act 2006. Although you can submit your home address as a service address, it will be displayed publicly in companies' registers. Fortunately, you can change this address later.

3. Directors residential address

All company directors must submit their service or residential address to the Companies House. These home addresses are kept on a private register, meaning it's locked from the public eye.

4. Single alternative inspection location (SAIL) address

You must provide the SAIL address and the company's registered address during company incorporation. A SAIL address permits a company to designate a different address than its registered office address for the public inspection of statutory records. SAIL addresses are publicly accessible on the register and cannot be deleted once listed.

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Final Thought

As a company director, you must comply with government correspondence; it's not your accountant's duty. If your accountant fails to fulfil your statutory obligations or doesn't inform you about HMRC or Companies House mails needing your urgent attention, you have no excuse. It's your legal obligation to read government mail, so you must be in control and ensure you have access to all vital correspondence.

Additionally, you must maintain consistency even after changing an accountant or vacating the business premises. This consistency can only be achieved through professional address service. If you have any questions about challenges with using an accountant for your Registered Office, kindly contact our expert here for help.