Virtual addresses and business rates

The_pc_tech

I am looking at starting a small business from home in my spare time but my parents' mortgage prevents this so I am looking at using s virtual address and mail forwarding service.

I would be trading as a sole trader initially and am most definitely NOT trying to dodge any kind of tax but I wondered what the situation is with business rates if you use a virtual address service as your trading address as obviously if business rates were charged on where I was actually working from the building society would get wind and not be too pleased.

If the business takes off I will move into dedicated offices.

Any advice much appreciated.

lincroft1710

Business (or non domestic) rates are payable on a property or part of a property which is used exclusively for non residential purposes.

Therefore an office block, shop or factory would be subject to business rates. Part of a house used solely as an office or a shop would pay BR on that part. However where there is dual usage e,g. office by day, bedroom by night then BR is not payable.

The_pc_tech

Thanks very much for that to the point advice.

Trying to read or rather wade through HMRC's site is making my brain hurt.

Jellybean1108

If you're planning to have a website, it is a legal requirement to have the address you trade from (I.E your home) on the website. Not a clue about the rest though I'm afraid! xxx

Owain_Moneysaver

Jellybean1108 wrote: »

If you're planning to have a website, it is a legal requirement to have the address you trade from (I.E your home) on the website.

The OP won't be trading from home, though, though they might be working at home. The E-commerce regulations require a geographic address where legal notice can be served. For a registered company the registered office address can be used (and would have to be shown anyway).

You don't have to tell customers where your offices and warehouses (or equivalent) are actually located.

Jellybean1108

The distance selling regulations require an address where all items are shipped from is what I meant

Owain_Moneysaver

Jellybean1108 wrote: »

The distance selling regulations require an address where all items are shipped from is what I meant

No they don't. DSRs require

the geographic address of the business to which the consumer may direct any complaints. In the OFT’s view this means a physical location and therefore excludes a PO Box address

.

E-commerce regs require

• the full name of your business
• the geographic address at which your business is
established
• your contact details, including e-mail address

An address at which the business is established is not the same as where the items are shipped from, which if items are drop shipped by the manufacturer even the seller might not know where that is.

The_pc_tech

I'm starting a web hosting business so no physical product will change hands.

Buzby

The OFT's view is one thing, the law is quite another. A PO Box is fully acceptable as a valid address - but at a cost of £250pa, is not a cheap alternative.

There is a requirement to exhibit valid contact details, but whether physical or virtual it doesn't matter. Mailboxes etc offer a physical address - but there is no requirement any representative is present to attend to any caller.

The_pc_tech

The only reason I am looking into this is the reasons originally mentioned, if it were not for that I wouldn't be.

NeverEnough

There are numerous companies out there offering proper office addresses and mail forwarding - they are street addresses, not necessarily P.O.Boxes.
Not that cheap, but I for one use them for my websites as I have no wish to broadcast my home address to the internet at large - domain registrars require contact details for each and every domain which is registered. The expense would be a legitimate business expense to deduct from your business acounts.

I have had mine for a few years now and with numerous blogsites etc I recommend it for privacy purposes.