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Registering company at your home address

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    Registering company at your home address

    Hi all,

    I am planning to start a "trading" company - ie I plan to sell software I write from company website. Now, I dont need office to develop software so my bedroom is the most perfect place for (at this stage). So some questions:

    1. What are the implications of registering LTD at your home address (I co-rent private house with my friend)?

    2. Also, tenancy contract is typical - no running business, now I wonder whats the best way to tackle it.

    3. How would being Director of your own co affect your car insurance - particularly with irregular (very rare) visits to clients side to upsell consultancy related to software sale. Ok, I know it will go up, but by how much - 100%???

    4. Since the company is going to earn money from sales of software to mulptiple companies, would that 100% cover me from IR35?

    5. Again, since I plan to earn money mainly from trading activity would I have issue with IR by paying myself lots of dividends with salary being just below 40% threshold?

    #2
    Taking the easy one first.

    3) Business cover for the car doesn't cost very much so long as you are not commercial travelling. I think it increases the premium by about £30 in my case.

    You could find out by playing with the various insurance websites and changing parameters to see what difference it makes to the quote.

    Comment


      #3
      cheers zeit - my insurance is due to for renewal this month, actively playing with different suppliers, so far so good - got quote down from £1350 to £818

      keep the answers coming people!

      thanks

      Comment


        #4
        I think it's termed "Class One" business cover.

        You may find that the cheapest companies don't offer it.

        Comment


          #5
          Re: Registered Office

          1. Registered at home

          DON'T.

          Main reason -You could get stung for business rates as you are renting the bill will probably be sent to your landlord which will be a bit of a giveaway that you are breaching your terms, probably also the reason for those terms so expect to be on the street pretty quickly after he gets the bill.

          You have to put this address on all your business correspondence (this includes your website) by law - Business Names Act 1985. Do you want the entire world (including burglars looking for juicy stuff like laptops) to know where you live? Register your office at your accountants, it costs bog all (I think I pay about £50 p.a. to rent the space for the brass plate!).

          Do not make the mistake of thinking a P.O. Box will keep you anonymous, anyone can ask the Royal Mail for the address behind and box and they HAVE to tell them. Plus a Box number costs more than I pay the bean-counter.

          Comment


            #6
            Re: Registered Office

            well, so far I've read that I will only be stung by business rates IF I get business visitors to the house OR have dedicated area for work (like separate room) - so long as I use my bedroom's PC and no visitors I will not be stung by business rates. I have no equipment beside my PC and fax so I am pretty sure I should avoid business rates - I am renting property as a professional and I what capacity I operate (via LTD, self employes or employed) should not matter to landlord - I am certainly going to check it.

            Well, the entire world will know my address because it used in domain names - including my personal site.

            Anyway, what bothers me more than having address is that I do not want to rent office - its not mail box issue its an issue that I can work being employed by my own company in my house - ie working from home.

            Thank for input - keep it coming.

            Comment


              #7
              Re: Registered Office

              You're right about terms of use AtW. Provided you're not bringing clients home (down Wabbit, down...) and have a sofa bed in your guest room/office, you'll be fine.

              Comment


                #8
                Re: Address

                Don't know if this is of any use, but my co's registered address is at my accountants whilst the correspondence address is my home.

                I also have a dedicated "office" where I do any home-based work.

                The scenario was the same when I rented and I had a similar "no business" clause in the rental contract, but this did not seem to raise any problems when I asked the agency/landlord

                Importantly though, I received no business visitors and the company does not pay direct rent for the room in use (I was told that the latter would attract business rates)

                As with all unprofessional advice, this is based on my own experience and I may be talking utter nonsense.

                Comment


                  #9
                  Re: Address

                  cheers all - it checks out. My main concern is to be able to work at home employed by my own company, registration can be elsewhere with correspondance coming to home. I am paying for rent as private tenant not as business so it should not be a problem. Will check with landlord anyway, just before he comes for regular 6 months renewal

                  Comment


                    #10
                    Planning permission another factor

                    My first house had a clause in the deeds that it could not me used for business purposes, it was a planning restriction.

                    My solicitor advised me that it was there to stop people filling their gardens with old cars, building equipment and supplies, create a lot of coming and going by delivery wagons and customers, and so on.

                    But so long as I had a desk and computer in the back bedroom and didn't have loads of punters constantly visiting, and kept it low profile, I would be OK.

                    Comment

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