Choosing a suitable address as a registered office is one of the first decisions you will make when setting up a limited company in the UK. Some people use their accountant’s address as a registered office. However, there are a number of reasons why this is not the best choice, which we discuss below.
Disadvantages of using an accountant’s address as a registered office
Using your accountant’s address as a registered office may seem like a good choice, given that important tax notices and filing reminders from HMRC will be delivered to your registered office.
However, your accountant is not the one who is legally responsible for your company’s statutory filing and reporting requirements, even if you pay then to complete and file your accounts and tax returns. It is you, the company director, who is ultimately responsible and liable.
By using your accountant’s address as your registered office, a number of disadvantages and risks present themselves. It is important to take these into consideration when deciding on the best address for your company.
1. Loss of control
You lose control over access to your government mail. This important statutory correspondence from Companies House, HMRC, and other government agencies will be delivered and opened by your accountant or one of their employees.
You will not get to view this mail yourself, so you won’t know what is delivered, and when. As the company director, you must retain control. This includes having full access to all statutory company mail.
2. Not mail handlers
Accountants are not professional mail handlers. Receiving your company’s statutory mail is not your accountant’s main focus. This means that mistakes may be made – and these mistakes could be costly to you and your company.
3. Not all mail is relevant to your accountant
Only some of the mail delivered to your company’s registered office will be relevant to the work that your accountant carries out on your behalf. There is, therefore, a risk that other important correspondence may be overlooked. This could lead to missed filing reminders, legal notices, and important compliance news, which could have severe consequences for you and your company.
4. Reliance on a third party
It is incredibly risky to rely on your accountant to notify or remind you of filing deadlines, reporting obligations, and other duties that fall upon you as a director. The buck stops with you, so you need to minimise the risk of vital information and responsibilities slipping your mind.
5. Lack of independence
If you decide to change your accountant at some point, you will also have to change your registered office address at Companies House. Additionally, you will need to update your registered office details on your website and all of your business stationery, which can be time-consuming and costly.
6. A costly service
Regardless of what your accountant suggests, using their address as your registered office is not a free service. Accountants charge high hourly rates for their professional services and valuable expertise – they don’t do extra work for free, and nor should they be expected to. Therefore, the cost of handling your mail will be hidden in their fees.
Benefits of a modern registered office service with digital mail handling
Using a professional registered office means that you will enjoy the benefits of a modern digital mail service. At 1st Formations, our London Registered Office Address Service provides a number of advantages for limited companies registered in England and Wales.
1. Professional service
All statutory company mail delivered to your registered office is handled by a dedicated, professional team whose sole focus is to receive, process, scan, and forward clients’ important mail.
2. Immediate access
Your official government mail is made available to you online via your secure customer portal. You can access this at any time, from anywhere. Every item of official mail from HMRC, Companies House, and other government agencies is delivered to you by email on the same day that it is received at our London office.
3. Retain control
You retain control of your statutory correspondence. This removes the risk of penalties, fines, and reputational damage as a result of mail being overlooked by your accountant or one of their employees. There is no reliance on your accountant to handle your mail or inform you about important matters requiring your attention.
4. Independence
You maintain professional boundaries and practical independence from your accountant. If you decide to use a different accountant or do your own bookkeeping and accounting in the future, there is no need to change your registered office.
5. Cost-effective option
You will only pay accountancy fees for specialist accountancy work and advice, not mail handling duties. The cost of our prestigious Registered Office Address Service in Covent Garden, London is only £39.00 (+ VAT) per year. This is a fraction of the cost that an accountant will include in their fees for providing registered office and mail-handling services.
6. Corporate image
You will enjoy the prestige and professional credibility that a recognisable, central London address affords, even if you and your business are located elsewhere. Linking your company to a prominent address enables you to present a superior corporate image to customers, business partners, suppliers, and other professional associates.
Your registered office address, which is publicly available on the Companies House register and easily searchable online, is not restricted to wherever your accountant’s office is situated.
7. Continuity
You can use the same London address as your registered office, service address, and business address. Doing so will ensure that all mail is delivered to one place, handled by a dedicated mail team, and available to view in a single online portal.
Making the best choice for your limited company
As a limited company director, you alone are responsible for complying with government notices and reminders, not your accountant. If your accountant does not fulfil a statutory obligation on your behalf or fails to inform you about mail requiring your attention, you have no recourse.
It is your legal responsibility to read every piece of government mail that is delivered to your company, so you must retain control and ensure that you always have immediate and unlimited access to this important correspondence.
If you’d like to speak to someone about our range of company address services in London, please get in touch with our Customer Service Team and they’ll be delighted to help.
Join The Discussion