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Month: November 2023

When to incorporate

This is a question we get asked frequently.  Currently sole traders have to pay personal tax on their profits, Class 2 national insurance on profits over £50,000 at 2% and Class 4 national insurance on profits between £9,501 and £50,000 at 9%.  Sole traders have to pay a payment on account if their annual tax bill exceeds £1000.


Limited companies do not have to pay payments on account or national insurance but have to pay 100% of their corporation tax 9 months and 1 day after the year end at a rate of 19% on profits.


Limited companies can have shareholders unlike soletraders.  When taking the combined personal tax and corporation tax liability for limited companies vs tax and national insurance for soletraders, the rough tipping point is if you have profits of £12,000 or more, it could work out to be more efficient for tax purposes to be a limited company.


What is a registered office and do I need one?

What is a registered office address?

A registered office address is a legal requirement of all Limited Companies and Limited Liability Partnerships (LLPs) incorporated in the UK. Its purpose is to provide Companies House and HMRC with an official address for delivering statutory mail and legal notices. It must be a full, physical postal address in the same part of the UK where your company is registered i.e. England and Wales, Scotland or Northern Ireland. Both residential and non-residential addresses are permitted but many people prefer to keep their homes private.

Your registered office does not have to be in the same part of the country where your main trading activities are carried out, nor do you ever have to visit it. It is simply for receiving official mail and storing statutory records for inspection purposes.


Why do I need a registered office for a limited company?

  • Legally required under UK company law
  • Official mailing address for statutory correspondence.
  • Details are placed on public record to create corporate transparency.
  • Statutory records and registers must be kept and made available for inspection at the registered office.

You can change your registered office at any time after company formation as long as it stays in the same UK country.


Can I use my home as a registered office?

You may use your home for this purpose but it is not mandatory, nor is it the best choice. Ideally, you should use a non-residential address for reasons of privacy and professionalism.

The benefits of a non-residential registered office are:

  • Due to the public disclosure of corporate information, the use of a residential address could result in unwanted visitors and unsolicited mail at your home.
  • More likely to be perceived as an established, credible business if you have a professional registered office address.
  • Draws a clear line between work life and home life.


If you would like Harmonea to be your Registered Office address, please contact us.Facebooktwitterredditlinkedinmail