The purpose and requirements of different types of addresses can be confusing for new business owners, whether operating as self-employed or trading through a limited company. This blog discusses the trading address, including what it is, when you might need one, and how it differs from a registered office address and a service address.
Key Takeaways
- A trading address is a commercial or residential address where a business carries out its day-to-day activities.
- It may or may not be the same as a company’s registered office or director’s service address.
- Trading addresses are not disclosed on public record unless used as registered offices, service addresses, or SAIL addresses.
The trading address explained
Whilst there is no legal definition, a trading address is the physical location where a business conducts its regular trading activities and receives non-statutory mail from clients, suppliers, service providers, lenders, and other business contacts.
A trading address can be commercial or residential. Depending on the nature of the business, it may be an office, retail unit, hospitality venue, studio, factory, warehouse, or private residence.
Any business can have a trading address. This includes freelancers, sole traders, general partnerships, limited liability partnerships (LLPs), and limited companies.
Trading address requirements
Self-employed individuals and general partnerships must provide a trading address for HMRC and keep it up to date in their Self Assessment tax account. This can be a home address or a ‘business address’. If you run your business from home, you can use your residential address for this purpose.
Additionally, if a sole trader or partnership carries on business under any name other than the individual’s surname or the partners’ names, they must disclose an address to customers and suppliers where documents relating to the business may effectively be served. Many businesses will use their trading address.
The address must be:
- Included legibly on all official business documents – letters, written orders for goods or services, invoices and receipts, and written demands for payment
- Shown on business websites if they sell or advertise online – per the Electronic Commerce (EC Directive) Regulations 2002
- Provided immediately in writing to any customer or supplier who requests it
Under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, any business making distance sales must provide details of its postal address before a prospective buyer responds to an advert or concludes an online transaction. This ensures the consumer has the necessary contact information to address any complaints in writing. The postal address may or may not be the trading address.
The Electronic Commerce (EC Directive) Regulations 2002 also require that the address disclosed by any business selling or advertising online is a ‘UK geographic address’.
When registering for VAT, HMRC requires a ‘principal place of business’ (PPOB). For most businesses, this will be their UK trading address, where they receive and deal with orders and operate on a day-to-day basis.
Is a trading address on the Companies House register?
A trading address is not an official Companies House address. Businesses are not legally required to disclose such details on the public register.
The only time a trading address is publicly disclosed on the Companies House register is when it is also used as a registered office address, service address, or single alternative inspection location (SAIL address).
Can I have more than one trading address?
If you operate from a single location (e.g. a home office or commercial premises), you will have one trading address.
Businesses trading from multiple locations (e.g. a chain of stores or different office branches) often have numerous trading addresses, whilst others use only one address as the sole point of contact.
However, you can only register one trading address per business with HMRC at any given time. Therefore, if you trade from multiple locations and want to use different trading addresses, you may have to set up separate business tax accounts with HMRC under different trading names.
Trading address vs registered office, service address, and SAIL address
A trading address does not serve the same purpose as a registered office, service address, or SAIL address. Most businesses have a trading address, whereas the other three address types only apply to companies. We look at each one below to help you understand how they differ from a trading address.
Registered office address
While a trading address is where a business carries out its principal activities, a registered office is the legal address of a UK company (or LLP). Every limited company incorporated in the UK must provide a registered office address for Companies House. It must be situated in the company’s country of incorporation (England and Wales, Scotland, or Northern Ireland).
A registered office is where a company receives official correspondence from government bodies such as Companies House, HMRC, the Insolvency Service, and the courts. The address details are publicly disclosed on the Companies House register.
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Companies do not have to trade from their registered office, nor do any directors or owners need to be based there. However, some companies use the same address as their registered office and trading address.
If you use your trading address as a registered office, it will become publicly available information. This has the potential to create the following problems if you trade from your home address:
- Raises the likelihood of uninvited visitors
- Opens your private residence up to junk mail
- Increases the risk of ID fraud
- Gives the impression that your business is small
- Draws attention to the fact that your company is home-based
You may assume these issues are unavoidable since the registered office is on public record anyway, but this isn’t always the case. You do not have to use your residential address as a registered office or trading address, even if your business is home-based. Alternative options are available, which we discuss later in the post.
Service address
A trading address and a service address have entirely different purposes and requirements. A service address, also known as a ‘correspondence address’, is the legal address of a company subscriber, director, secretary, person with significant control, or LLP member.
Every such person is legally required to provide service address details to Companies House to receive official mail relating to their role in a company. It can be a residential or commercial address anywhere in the world, but it is disclosed on public record.
Some smaller companies use the same address as a registered office, service address, and trading address. However, this is not advisable if the address is residential.
SAIL address
A single alternative inspection location (SAIL address) is an optional address that a company can use if it wants to keep its statutory registers available for inspection at a location other than its registered office.
This need for this type of address typically arises if a company’s registered office is not a convenient or suitable inspection location. Some companies may use their trading address as a SAIL address if it’s more appropriate than the registered office.
However, a SAIL address must be based in the same country as the registered office. It will also appear on the Companies House register.
Address services from 1st Formations
At 1st Formations, we offer three prestigious address services in Covent Garden, London, suitable for limited companies and LLPs:
- London Registered Office Address Service – available for £39.00 per year
- London Service Address – available for £26.00 per year
- London Business Address – available for £96.00 per year
These are perfect for keeping your home address off the public register, creating a professional image, establishing a well-appointed professional presence, and enhancing your company’s credibility.
Each address service provides the forwarding of mail by scan and email on the same day.
Can I use a 1st Formations address service as a trading address?
We’re afraid not. None of our address services are suitable for use as a trading address. However, you can use our London Business Address to receive non-statutory mail.
Can I use a 1st Formations address as a ‘principal place of business’?
No, you can’t use any of our address services as your principal place of business for VAT registration purposes. Normally, a PPOB is where a business receives orders and operates on a day-to-day basis.
So, there you have it…
What is a trading address? It is the location where a business carries out its trading activities. We hope you have found this post helpful.
Please leave any questions in the comments section below. The 1st Formations Blog offers a wealth of business insights and advice, including guidance on setting up a limited company in the UK.
Please note that the information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While our aim is that the content is accurate and up to date, it should not be relied upon as a substitute for tailored advice from qualified professionals. We strongly recommend that you seek independent legal and tax advice specific to your circumstances before acting on any information contained in this article. We accept no responsibility or liability for any loss or damage that may result from your reliance on the information provided in this article. Use of the information contained in this article is entirely at your own risk.
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