One of the most important questions to answer when starting a business in the UK is where you’ll locate it. At face value, this might seem like a minor consideration. After all, starting a new business involves many complicated steps, like dealing with the commercial register, sorting legal procedures, choosing a business structure, establishing funding—the list goes on.

Using a home address for business in the UK

When it comes to choosing an address for registering your new business with Companies House, the government-affiliated body for storing information on all limited companies and LLPs, you might be tempted to choose your personal home address. However, using a home address for business in the UK is a bad business move for many reasons. For example, Companies House makes all registered office addresses a matter of public record.

In this article, we’ll pick apart the most important things you should know before using a residential home address for business in the UK and why you shouldn’t. We’ll also explore the pros and cons of the alternatives that are available to you. Let’s go.

Can I Register a Business at my Home Address?

Yes. Legally speaking, there’s no UK law that bans using a residential address for business purposes. When it comes to choosing where your business will operate—whether that’s from your home, a rented office or a virtual workplace—the ball is fully in your court.

Given the current trend towards working from home, many small businesses in the UK are taking advantage of the benefits it offers, such as spending less time in the office, reducing or eliminating commuting time, reducing overhead costs, passing business registration easily, and more.

So, if you choose to base your business in your home rather than a dedicated office space, will you need to publish your home address as a registered office on the ever-public Companies House?

Unfortunately, a PO Box address isn’t a valid option (and there are some PO Box alternatives anyway), and it’s impossible to ask Companies House to remove your business’ registered company address, even if it’s your home address, if you decide to relocate to an office space in the future. This means that you risk breaching your privacy, while using your home address arguably makes your business seem less professional in the eyes of suppliers and customers.

However, did you know it’s possible to use a different address for your business while operating from home? Before we see how, let's dive into the disadvantages of using a home address for business and explore the UK official business registration requirements.

Advantages and disadvantages of using home address for business

It’s completely legal to use your home address for your new business - but should you? There are a few reasons for business owners to consider registering their home as a commercial address, but do the pros of this outweigh the cons?

Let’s take a look at the advantages and disadvantages of using your home as a commercial address so you can make a more informed decision.

6 Main Disadvantages of Using Home Address for Business

Here are six reasons why you may want to explore available alternatives to using your home address as your official commercial address:

1. Privacy

When you register a limited business with Companies House, it will be publicly logged on their register. The Companies House register can be used by the public to search for addresses online for free. The UK government recommends that you carefully consider what personal information you decide to register, especially because you cannot remove a registered address from the register. You can, however, change your registered business address later on.

2. Family

If you register a business at your home address, it means everybody is welcome at your home – customers, business associates, begrudged buyers, scam artists, and even Companies House reps. Before choosing your home address as your registered business address, consider the impact that will have on your family’s privacy. Imagine enjoying lunch with your family when the doorbell rings with a stranger at the other side of the door demanding payment or wishing to complain. This is often considered as one of the biggest issues with using your home address as a commercial address.

3. Legal Requirements

As mentioned before, your registered address needs to be in the same country as your business. But what if your business is in England and your home address is in Scotland? The registered address won't be accepted, which will cause a headache when registering your business.

4. Unexpected Visitors and Cold Callers

HMRC representatives, clients and cold callers can appear at a registered commercial address at any time. So, if you want to avoid people turning up unexpectedly at your private residence, it would be best not to register it as your business address.

5. Professionalism

If your business address makes it obvious that it's in a residential area, some potential clients might be put-off and feel that you lack professionalism and legitimacy. A home business address often comes with less credibility and authority — not through any fault of your own, but simply through bias. On the other hand, by choosing a business address in an area that’s established as a location for businesses, you’re more likely to present your business as a successful brand.

6. Mail Handling

Having your personal and business mail delivered to the same address can get confusing. You may end up with too much post to keep up with, and having important communications slip through the cracks is not a professional look, and could lead to significant consequences. For example, if you're using your home address for business taxes but miss some correspondence, you might end up with a hefty fine after an unpaid balance.

Are there any advantages of using my home address for my business?

We’ve outlined the six reasons behind why we don’t recommend using your home address for your business address, but are there any advantages at all? There are really only two reasons that make it worth even considering: cost and ease.

Using a private residence as a commercial address will save on the cost of setting up a PO Box or PO Box alternative solution, while you’ll also receive all of your business mail straight to your home, rather than having to go and pick it up from another location. The latter might be particularly important if you have a physical disability, or if you don’t live close to a post office or alternative solution provider.

It’s arguably faster to set up a business with a home address because there are fewer steps involved in that process compared to setting up a PO Box or PO Box alternative.

However, considering the significant number of disadvantages associated with using your home as a commercial address, you’ll need to decide carefully whether the cost saving and convenience make it worthwhile.

What Are the Official Requirements for a Registered Office in the UK?

As a new business owner, you need to have an understanding of the UK government's rules for company addresses. Is it even necessary for you to set one up?

If you're setting up a limited company, then yes, you need to register an office address with Companies House. However, it doesn't have to be part of an actual office building; home and PO boxes are both eligible for this purpose.

But what if you're setting up a different kind of company, like a sole trader? Then, it's only necessary to register a commercial address with the HMRC if you earn over £1,000 in one year. So, in some cases, startup owners might not have to register a self-employed commercial address at all — but it's best to plan ahead in case you exceed that monetary threshold.

Pro Tip: A sole trading company is owned and controlled by one person, while a limited company is legally separate from its owner.

If you need to register an address for your UK business, keep these requirements in mind. The address must be:

A physical address.
Located in the same country your business is registered in — in other words, if your company is registered in England, your office address must also be in England.

A PO Box isn’t an option for your official registered commercial address, but they can be used as an alternative to receiving business mail at your home address.

How to Choose the Best Type of Address to Use as a Registered Office

The reasons listed above are why many people advise against using your home address for business. If you aren't renting an office and are not keen on registering your home address, you still have other options. Here are some alternatives to consider:

Use Somebody Else's Address: This is recommended if you'd like to keep your address private but still wish to avoid the cost of investing in a dedicated solution. Of course, you'll have to get the other person's permission. Consider using the address of the person who is managing your corporation tax.
Virtual Office Address: If you can't get permission to use somebody else's address, a great option would be to set up a virtual office address. With one of these, you can get a virtual office in a prime location for a reasonable price. Some companies like The Hoxton Mix even let you add on dedicated mail handling and pick-up, as well as same-day mail forwarding.
PO Box: A PO Box cannot be used as a registered commercial address with Companies House, but by renting a PO Box you can use the local post office’s address as your business’ mail address. This solves the issue of mixing your business mail with your personal mail, although you will have to go to the post office frequently to pick up your business correspondence—or pay a hefty delivery fee. If that doesn’t appeal to you, then you might want to consider some of the PO Box alternatives.

The Hoxton Mix Solution

Many business owners in the UK opt for virtual business addresses, as they offer the privacy of PO Boxes but with more features and, often, at a lower price. What’s more, they can also be used as your registered business address.

Take, for instance, The Hoxton Mix. You can set up your virtual office right away with no setup fees! If you were to register for a PO Box through Royal Mail, it could take up to 7 working days, and a minimum of 3 months of payment is required up-front.

What's more, with The Hoxton Mix, you get so much more than mail holding and a dedicated virtual business address. We offer fully customisable plans, which all have great benefits:

Mail handling pick-up: no handling fees
Mail handling and forwarding: no postage fees
Mail scanning and digital forwarding: get all your mail on the same day
Scan Pro: get a hard copy in addition to the digital forward

You can even add on meeting room rentals and a London 020 number for a full office experience. Get a prime address for a virtual office in London and build your credibility with prospective clients. Plans start at just 41p per day, and you're not locked into a contract, meaning you can cancel at any time.

What's more, you won't have to register the address with Companies House yourself—we'll do it for you. At The Hoxton Mix, we're prepared to do whatever it takes to help your business succeed.

Need clarity on private limited companies? Check out The Hoxton Mix's comprehensive overview of their advantages and disadvantages.

Final Thoughts

If you're starting a business in the UK, you'll likely need to register a business address — whether it's as a limited company with Companies House or as a sole trader through HMRC. While it's legal to use your home address for this purpose, it can impact your family’s privacy and look unprofessional. However, via alternatives like a virtual business address, you can have privacy and enjoy a registered address in a prime business location. If you'd like to set up a London virtual office with mail handling, get started today at The Hoxton Mix.

FAQ

What are the disadvantages of using a home address for business?

There are a wide range of disadvantages to using your home address as a registered business address in the UK, including privacy implications, a less professional appearance, cold call harrassment and potential legal implications. You’ll also risk missing important business communications when it gets mixed in with junk and non-business mail.

Is it legal to use a home address for business registration?

The short answer is yes. You can register a company at a home address in the UK, provided you’re comfortable with the address being listed as a public record.

Is a virtual address better than a home address when registering my company address?

Using a virtual office address for your business registration eliminates downsides like privacy concerns, while also offering all of the benefits that come with a virtual office solution. You can still work from home, save costs, be professional and upscale as your brand grows.