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The Po Box ultimate guide

The Po Box ultimate guide

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Estimated reading time: 13 minutes

Mailbox

You’re looking for a Po box. Not sure where to start? In this post, we will tell you the pitfalls and market hype surrounding what should be a simple choice. We will supply you with all the information you need to make an informed decision. If you know what you need, then skip this page and head over to our Po Box page.

 

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Table of Contents
  1. What is a PO box address?
  2. The difference between a Mail box and a PO box?
  3. The cost to open a box
  4. The digital box solution
  5. Is your mail secure?
  6. Can you post to a Po Box for free?
  7. Sending scanned mail as email attachments
  8. Can you use a Po box as a business address?
  9. What is a Virtual Po Box address?
  10. Can you share a box?
  11. What you need to know about sharing a Royal Po box
  12. What is Royal Mail redirection?
  13. Verification
  14. Protect your privacy with a Po box
  15. What a Po box doesn’t do
  16. Conclusion

What is a PO box address?

The simple answer is: A Post Office Box is to receive mail items. But as always, there’s more to it than a simple answer..

So, let’s start at the beginning. The abbreviated term Po box is often mistakenly translated to a ‘postbox’. A postbox is a physical box where members of the public can deposit a letter or a small parcel that’s collected by the postal service. Whereas, a post office box is a location within a building that is uniquely addressable for the delivery of those items.

postbox

The postbox

Post-office-box

The Post Office Box

Confused? then read on ..

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Register your free box address

The difference between a Mail box and a PO box?

There is no difference; they are the same. The phrase Mail box is predominantly used in American English, whereas PO box is British English.  British and American English are often used interchangeably and can lead to some confusion.

As previously explained, the phase ‘Po box’ is not a ‘postbox’. This is also correct in saying a ‘Mail box’ is not a ‘Mailbox’ –  which is also a physical box used to collect mail.  The phrase, Po box, and Mail box are often interchangeably used to mean the same thing – a private box to deliver mail items.

As we are a UK Based company, we will use the term Po Box in future references.

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The cost to open a box

It can be quite expensive to open Po box. The Royal Mail which is the largest Po Box supplier in the UK is charging £426 at the time of this blog post. This is quite an outlay for anyone.

As you know, the term Po box is traditionally associated with physical storage to receive mail.
However, with the invention of computers and the internet, boxes are now represented as a registration entry in a database and a directory on a server to store files – a virtual Po Box. This opens up multiple choices for the customer looking for something more tailored to their requirements.

mail-folder-directory

 

The free box option

Get a free box, where items received incur, pay-as-you-go rates (PAYG). This obviously is only intended for the infrequent user.  Rates for this type of service are typically charged higher to include additional administrative costs incurred, which can soon add up.

The paid box option

In contrast, a prepaid free box would be more suitable if you receive frequent mail.
With more account options available within various packages offered, might be more cost-effective.

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The digital box solution

You are away on holiday in some exotic location with no internet access. You require a service to deal with all your important mail. A modern digital box solution should be able to encompass all your mail requirements.
 
Options should include:

  • Physically store mail.

  • Mail opened, scanned, and uploaded to secure storage.

  • The option to download encrypted mail.

  • To encrypt and upload mail or files.

  • You don’t need to install an encrypting application on a public pc.

  • A business partner to be able to access mail.

  • To give access to multiple persons and be able to set access privileges.

At OfficeClerk we understand customers’ varied requirements. We offer a wide range of services to help the busy individual or company solve those problems that can soon add up to a big headache.

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Is your mail secure?

Mail securely stored, this you need to check. Not thrown into an unlocked cabinet accessible by anyone.

secure-mail

 

Physical storage

Our mail is secured in steel cabinets. Protected by CCTV and alarmed and only accessible by authorised staff. 

Online Storage

Our online storage facility has AES-256 bit encryption as standard. Additionally, utilise our online encryption tool to encrypt any mail you download/upload. Further Securing your valuable data.

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Register your free box address

Can you post to a Po Box for free?

No, you cannot send mail without it paid. Mail received to a Po Box without any postage will incur a reversal change and the owner of the Po Box will need to pay for it and claim it back from the original poster. That is true for any mail sent through the postal system.

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Sending scanned mail as email attachments

Sending your mail as an email attachment is a cheap alternative. It appears to be acceptable to the unwary but is fraught with security issues. Security software for mail servers and home PCs, can and will delete attachments without warning.

The 2020 Verizon Data Breach Investigations Report (DBIR) found that the mail attachment is a top malware vector. It’s an ongoing battle for web service providers to keep their networks safe. They update their mail server filters regularly. In effect, your mail is deleted without you knowing.

Email-Not-Secure

Read our blog post on what HMRC has to say about attachments in emails.


We value your custom and would never opt to take the easy way out by sending your mail as attachments.

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Can you use a Po box as a business address?

You can use a box address as a business address, it depends on what the provider is offering and licensed to do.

For example; Royal Mail rent boxes, but you’re not able to state their address is your trading address (day-to-day trading address – you are not physically there), only your business trading address. Furthermore, corporate entities (Ltd Companies) cannot use a box address as their registered office.

The UK Government states you can use a box address for a registered company, but it must be a physical address and it must be physically located within a building that is easily deliverable.

This is further clarified in Companies House own blog post:-
“You can only use a PO Box address if you also provide the full address of the physical building, including post code.”

Given that a Po box can be represented in different ways i.e. virtual address, care of (c/o), shared Po Box – can be represented as a registration entry in a database and a directory on a server to store files.

And that a company’s statutory records are generally kept at the registered office for inspection (not taking into account SAIL addresses). It’s not acceptable for this type of Po box to be used as it’s not physically accessible.

Some providers may offer their box addresses to use as business addresses, registered offices, and trading addresses. You need to check carefully their terms and conditions and know exactly what you are getting. A physical Po Box or a virtual Po Box. It can be difficult to understand, but there is a distinct difference.
 
Our office, passed by HMRC as a Company Service Provider allows us to offer our services to the sole trader needing a business address, the individual wanting to incorporate a company or a registered office address.

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What is a Virtual Po Box address?

A virtual box address is a place where you are not physically located. It’s an address with a Po box included and where you can have your mail delivered. Don’t confuse it with a fully accessible virtual office.
The dictionary definition of the word ‘Virtual’ is:
“almost a particular thing or quality”
https://dictionary.cambridge.org/dictionary/english/virtual

virtual-po-box

If you do not have physical access, then in reality it’s a box address you can only remotely access with your pc over the internet.


Some industry knowledge for you:
It might come as a surprise to learn that some mail service providers rent virtual offices. That office and virtual Po box are then marketed as a premium street address they own. When in fact, it’s a virtual office address. Also, beware a third party is handling your mail.
There is nothing illegal in what they do, but make sure you know what you are getting when you sign up as often it’s not obvious to the uninformed.

At OfficeClerk, we own our own building, we do not claim to have multiple locations and market them as our own premium addresses. When you rent a box from us, it’s in our own building and not a virtual address.

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Register your free box address

Can you share a box?

As long as there is one primary account holder who has passed KYC verification – know your customer – and is responsible for the box address, there is generally no issue with shared access. We offer the ability to add extra names to an account together with a forward address to anywhere in the world.

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What you need to know about sharing a Royal Po box

There are a lot of people who rent Royal mail boxes, even though they are quite expensive. You can share a box, but what you need to take into consideration is an oversubscribed box – shared by a lot of people. This should normally not be a problem with a small amount people.
But let’s say for example; a company rents a Po box from Royal mail. We will call this company ‘We Rent Post boxes to You’
 
The original format of the address would be something like this:
 
We Rent Post boxes to You
Po box 12345
London

So, the company We Rent Post boxes to You informs their clients they can use the address:
 
Mr. Smith
Po box 12345
London
 
But there is the problem if you have two people called Mr. Smith, or worse, if a person is sending mail assumes Mr. Smith owns that Po box and addresses the envelope to:
 
Po box 12345
London

Where is my mail?

po-box-frustration

As you can see this can lead to mail not being delivered to you because the two names are the same.


Think very carefully about what your chosen mail provider is actually offering you. A personal box address or a shared Royal mail box. Beware of the subtle difference of who is actually accepting delivery. In this case Royal mail and as far as they are concerned, it has been correctly delivered and reported as such on their systems.

Our systems are designed to allow authorised shared access to your personal box to ensure your mail is correctly delivered.

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What is Royal Mail redirection?

You’re away from your home for a while, or you’ve sold your home.
So, now you face the problem of where all your mail is going while you’re unavailable.
 
Your mail could fall into the wrong hands. You could become the victim of identity fraud with dire consequences.
 
The simple solution is to use the Royal Mail redirection service and instruct them to redirect your mail to a Po box. It’s a chargeable service available to individuals and businesses. Set your redirection period to 3,6 or 12 months.
 
You can redirect your mail overseas, but this would cost more than renting a Po box located in the UK. Also, you have the added benefit of not worrying about your mail in a foreign postal system.

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Verification

The need to verify yourself when opening a box is just as important as opening a bank account. It’s not as though the supplier is being awkward, it’s the law of the land. Officeclerk requires all individuals, that being corporate or personal to verify their identities.

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Register your free box address

Protect your privacy with a Po box

With the explosion of the internet, came many opportunities.
But as with all things good, there are downsides. This primarily is the need to keep yourself safe and protect your privacy.
Many websites need an address when signing up, which can lead to the unwanted attention of your home address. By using a free Po box, you can in a single stroke protect yourself.

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What a Po box doesn’t do

There are many claims of how a Po box offers you protection. Most of this is marketing hype. A few scenarios where a Po box will not protect you.

  • Use your box address to hide illegal activity.

  • Use your box address to avoid paying people you owe money.

  • Use your box address to abuse a person.

  • Use your box address to avoid the serving of legal documents.

A Po box is primarily a convenience and is not a way to anonymise yourself. All bona fide companies offering Po box services must identify their customers – know your customer (KYC) – before conducting any business with them. Remember, any Po Box is traceable back to the owner.

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Conclusion

We now hope you have a better upstanding of the pitfalls and market hype that can surround getting a Po box and give you the information you need to rent a Po box, whether you are a person or a corporate entity.

The Author

jan

Jan

Janice is a founding member and enjoys writing informative articles to help entrepreneurs find the resources they need to grow their businesses.

Interested in reading more….

UK Ltd Companies: the definitive guide in setting one up

UK Ltd Companies: the definitive guide in setting one up

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Estimated reading time: 15 minutes

company-formations

You want to set up (incorporate) a limited company in the United Kingdom (UK). There’s plenty of information available on the internet, but it can be confusing and technical to read and understand. We’ll explain all you need to know about forming companies, registered offices, directors’ service addresses, and much more in easy and simple terms you can understand.

Get your all inclusive Company Formation
here

You’ve made the decision that you either need or want to form or incorporate a company as it’s more commonly known. There could be a variety of reasons why you have decided. It could be you are a successful sole trader, the size and nature of your business can change quickly and you need to expand to attract investors. The individual who has taken advice because of increased exposure to risk, that you need to open a company and limit your liability.

Either way, before you take the plunge you want to know more.

We’ll start at the beginning, or you can skip any section that does not interest you and go directly to the section that most interests you by using the table of contents.

Table of Contents
  1. What is a limited company?
  2. The director
  3. The company secretary
  4. The company registered office
  5. Directors’ service or correspondence address
  6. People with significant control (PSCs)
  7. Shares
  8. Dividends
  9. Conclusion

What is a limited company?

Legally

In its simplest form, it’s a legal framework used to construct (incorporate) companies. Located within the UK, we use a law called the Companies Act 2006 to govern this framework.

One such company you can form is limited by liability. There are other company structures such as, limited by guarantee and limited liability partnership. However, we will focus on the limited by liability company framework.

The companies act states

“A company is a limited company if the liability of its members is limited by its constitution“

Meaning when forming or incorporating a company, documents called ‘memorandum of association’ and ‘articles of association’ are used to govern and guide it, using the rules set down in these constitutional documents.

The most common way of incorporating a company is using the default basic standard model of articles. By using these articles, any individual who acts for the company does so in the knowledge the company has agreed it will shoulder any liabilities as set down in its ‘memorandum of association’ and ‘articles of association’.

The company when formed (incorporated) and registered at Companies House, has gone through a legal process resulting in the law recognising it as an entity in its own right.

Think of it as a person who has just come into existence. And that it’s responsible for its own liabilities (debt) and assets (profit).

As this person (entity/company) cannot talk or make decisions, we need a living breathing person to act for it. We’ll call this person a director.

Read about how to set up as a sole trader and the differences between a sole trader and a limited company.

Company formation all inclusive package directly from OfficeClerk

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The director

A company can have many directors

Called a board of directors and headed (chaired) by another director, but for now, we will use one for the sake of simplicity. They must be over 16 and not necessarily reside in the UK or have a controlling stake.

The company needs to record each director in its own register. This can be a simple text file, as long as you keep a record.

The director must ensure the timely filing of company accounts, annual tax returns, and any other statutory documents. Allocating this to the company secretary is normal, but ultimately it’s the director’s responsibility.

Qualities of a director

A director should be an upstanding individual who will put the interests of the company first. Even though the company is limited by liability, that does not mean the company can be led astray and saddled with huge liabilities. There’s a huge difference between bad decisions and outright criminal activity and fraudulent trading. If a director has committed criminal activity they can be pursued legally as an individual.

company-directors

 

Disqualified directors

It should be noted that a director cannot be appointed if disqualified from holding such a post through misconduct. You can search if a director is disqualified.

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The company secretary

Optional

Though it’s usual for large PLC (public limited company) corporations to have a company secretary. It’s not required to have an appointed secretary for private Ltd companies since 2008 in the UK. But you may decide the size and complexity of your proposed company warrants a company secretary.

Role

The role of the company secretary is to assist the director in being compliant with statutory filings. This role is a responsibility of compliance rather than the traditional clerical duties of a secretary.

Any individual assigned this position, a position of trust, must be fully acquainted with what a company must do to be compliant. It’s not unusual for the director to assume this role. And it’s common in the case of one-person and very small companies.

Forbidden

It’s not allowed to appoint the company’s auditor which has to remain neutral to any circumstance that could affect the outcome of an audit. The company accountant is often offered this position as they have the necessary knowledge and experience in guiding directors.

It should be noted, however, that it’s still the director’s responsibility to ensure all compliance is being administered. Though in cases of outside negligence being proved, the director can be exonerated.

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The company registered office

Required by law

It’s a legal requirement for the company to have an office. This is typically called the official registered office of the company and it’s listed on the public record at Companies House. It’s where the company can receive correspondence, that being official or otherwise.

There are some addresses you cannot use for a registered office. i.e. a certain type of Po Box. The address used for the registered office also needs to be a verified address, checked through the Royal Mail postcode checker.

Publicly available

Since it’s publicly available on Companies House, you need to be careful what address you use. You can use any address you are lawfully allowed to use. From using your garage where you trade from to your grandmother’s cottage (not recommended), as long as it’s a genuine address you can use it as a registered office.

Consider carefully

What you need to consider is this address is where the public can inspect your records. That is, your statutory records, not your day-to-day accounts you would use to send to your accountant.

Be aware, that the public cannot walk in unannounced. They must make an appointment and give 2 working days’ notice. And they can only inspect them for a maximum time of 2 hours.
Companies (Company Records) Regulations 2008.

Your company registered office here for only £18

“Inspection: private company
4.—(1) A private company shall make its company records available for inspection by a person on a day which has been specified by that person (“the specified day”) provided that—
(a) the specified day is a working day; and
(b) that person gives the company the required notice of the specified day.

(4) When the person gives notice of the specified day he shall also give notice of the time on that day at which he wishes to start the inspection (which shall be any time between 9 am and 3 pm) and the company shall make its company records available for inspection by that person for a period of at least 2 hours beginning with that time.”

The fact the public has the right to physically examine your documents would be unlikely as all records are freely available over the internet directly from Companies House. But, you need to be aware this is still a right that exists.

If you don’t fancy the idea of using your own designated company registered office you can always use a..

SAIL address

Single Alternative Inspection Location. Simply put, it’s an alternative address you register with Companies House, where you keep those documents. However, keep in mind it has to be located within the same jurisdiction where your company was incorporated, that being England and Wales, Scotland, or Northern Ireland.

Why would you use a sail address?
The most common scenario would be a company that has one main (head) office and several satellite offices that are trading under different incorporated companies. The head office would be the location of all the satellite offices’ documents. Therefore, the head office would be down as a sail address of these companies.

Remember, you need to register this office with Companies House as an alternative location by completing an ADO2 form and posting it to them. You can also do this through the Companies House web filing portal

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Directors’ service or correspondence address

Required by law

The director is required to have a service address or a correspondence address it is sometimes referred to as. The service address is where any documents directly relating to the director are sent. This is available to the public through the public register.

Why does a director require a separate address from the company?

A person can be a director of many companies. If something goes wrong with a company they are a director of, i.e. Companies House filings are not submitted, legal documents are served on the director, or there is something wrong with the company’s mail not getting through to the registered office. Then they can be contacted through an alternate address.

Verified

The directors’ identity will be verified by Companies House. So, it’s important accurate information is supplied. Also, any service provider you use to provide company services will also need to verify identities.

Home address

The director also needs to supply their home address. It’s kept on a private register and not available for public viewing. Only the police and authorised bodies have access to it.

It should be noted, however, that if a director cannot be contacted through their service address. Companies House or HMRC will send any official mail to their home address as a last resort. Though this is not the case for the general public.

Directors service address here for only £18

Removing your home address from companies house public register

Companies House in 2015 made 170 million records available for free. Obviously prior to this date directors’ addresses were not available for public viewing. Many used their home address on paper filings not realising this was going to happen.

Companies House blog post quotes:

“we provide the public with free access to all digital data free of charge via the Companies House Service (CHS) and an application program interface (API). Some 170 million company records were available free.”

However, you can apply to Companies House for it to be removed from each document for a fee of £32 per document by completing SR01 application form.

There are other circumstances where you can request for your home address to be removed because you are in danger or threat of attack.

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People with significant control (PSCs)

Who is in control of the company (beneficial owners)?

It’s a legal requirement to identify exactly who’s in control. This can be the director, but what if there is a nominee director, or another entity, such as another company.

Even though a PSC is by definition an individual, another company can have control as they are classed as a legal entity.

A published guidance on the register of people with significant control by the UK government states.
Chapter 2, paragraph 2.21 “A legal entity must be put on the PSC register if it is both relevant and registrable in relation to the company“

persons-of-significant-control

Version: 3
Published June 2017


There is further guidance on the UK government website to help you understand.

In summary, you will need to identify which of these criteria applies:-

  • Someone who holds more than 25% of shares in the company

  • Someone who holds more than 25% of voting rights in the company

  • Someone who has the right to appoint or remove the majority of the company’s board

  • Someone who otherwise has the right to exercise significant influence or control

Someone who holds more than 25% of shares in the company

If any person or entity (corporate) with more than 25% of the company’s authorised share. That is, if the company has 100 authorised stock and has issued 26 to a person or entity and nobody else has a number greater than that.

This could also apply to 1 share out of 1 share of authorised stock issued to a director. That would equate to 100% held by the director.

Someone who holds more than 25% of voting rights in the company

If any person or entity can control the company at a general meeting, either through being a majority shareholder as explained above. Or having shares that have certain voting rights attached to them.

Special shares can have more than one vote attached, therefore a person can still be below 25%, but in essence, It’s like having more shares.

Someone who has the right to appoint or remove the majority of the company’s board

If any person or entity can fulfill any of the above criteria, then this will apply. This can also be the case if there is not one controlling shareholder – everyone has the same amount of shares below 25% – but a shareholders agreement is in place that gives one director overall control over the board.

Someone who otherwise has the right to exercise significant influence or control

Significant control can be asserted in different ways. This can be in the form of a signed letter by a nominee director who has over 25% share but has relinquished their control to another person. Therefore that person who does not fit into any of the above criteria will have control through the authority stated in the letter.

It could also be an investor who has invested large amounts of money but threatens to pull out if their demands are not met. Therefore, exercising control over the company through influence.

Why do you need to state who has significant influence or control?

The answer to that question is anti-money laundering (AML), tax avoidance, and identifying fraud. On 10 January 2020, the Fifth Anti-Money Laundering Directive (5MLD) came into force in the UK through the Money Laundering and Terrorist Financing (Amendment) Regulations 2019.

This was implemented to stop criminals from using various methods to commit fraud, i.e. using a multitude of companies to form complex corporate structures, making it extremely difficult who was actually controlling a particular company.

What if my company doesn’t have any PSCs?

It’s possible, but highly unlikely a company does not have any persons of significant control. Companies House has obligations to enforce this requirement. Failure to provide accurate information on the PSC register and failure to comply with notices requiring someone to provide information are criminal offences, and may result in a fine and or a prison sentence of up to two years.

Key points to consider are:

  • Identify the people with significant control (PSCs) over the company and confirm their information

  • Record the details of the PSC on the company’s own PSC register within 14 days

  • Provide this information to Companies House within a further 14 days

  • Update the information on the company’s own PSC register when it changes within 14 days

  • Update the information at Companies House within a further 14 days

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Shares

Ordinary share

As explained previously, shares play an important part in not only the control of the company but raising capital and sharing the profits.

Shares are best explained by thinking of them as slices of the company. The more slices you own, the more control and dividend payments you are entitled to.

When you first incorporate your company, you would allocate at least 1 (paid up) ordinary share of £1.00. There are many classes of share, but the simplest one is the ordinary share.

That share will give you as sole owner, complete control, as you have 100% of the allocated share capital.

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Dividends

Dividend payment

Paying yourself a dividend from the profits will involve issuing a dividend payment for the amount you want to pay yourself. i.e. £25,000 dividend to be paid out to one share. This should only be paid from the profits after corporation tax has been deducted, and any other liabilities the company needs to pay.

Board meeting

A board meeting is required to authorise any decisions made for the company, this includes paying out dividends. Though not strictly required for one-person companies, it’s always a good idea to keep records (minutes) of what you have decided.

The typical format of minutes would look like this.

Your Company 123 Ltd
Registered office address

Held on (date of meeting)
Present: Yourself

It was resolved that the Company pay a final dividend of £25,000 per Ordinary Share in respect of the year ended (the company financial year end) to those shareholders registered at the close of business.

There being no further business, the meeting was closed.
Signed
(your name)
——————————
DIRECTOR (date of meeting)

Tax voucher

Issue a tax voucher to keep as proof of your payment to HMRC and enter into your self-assessment on the relevant date.

Your Company 123 Ltd
Registered office address
Dividend for the year ended (the company financial year end) payable to shareholders registered at the close of business.

Shareholder: (your name)
No. Ordinary Shares: 1 Dividend Rate: £25,000 Dividend Payable: £25,000
(your name)
——————————
DIRECTOR (date of meeting)
Keep this voucher in a safe place.

Use an Accountant

This is not financial advice, you should always consult a professional accountant before paying yourself any money from your company. This only demonstrates the basic format that should be used when paying yourself dividends.

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Conclusion

We now hope you have a better upstanding of setting up a UK Limited company, whether you are a person or a corporate entity. It can be daunting at first, but with careful planning and accurate record keeping can result in many benefits and a professional image to your customers.

The Author

jan

Jan

Janice is a founding member and enjoys writing informative articles to help entrepreneurs find the resources they need to grow their businesses.

Interested in reading more….

Correspondence address – Residential address. The Difference?

Correspondence address – Residential address. The Difference?

Home » Blog

Estimated reading time: 6 minutes

residential-correspondence-address

You need to know what is the difference between a UK residential and a correspondence address. In this blog post, we’ll explain.

Personal Correspondence Address

Get Yours Now
Table of Contents
  1. Residential Address
  2. Correspondence Address
  3. So what is the actual difference between them?
  4. In what situations could a correspondence address be used?
  5. Conclusion

With so many address types to purchase it can often become confusing. You can purchase a company registered address, director service address, sole-trader business address, and correspondence address, you can even obtain a free Po Box address and the many reasons you might need to get one.

Each one has its use case, if you want to know more about business addresses you can read our blog post on how to set up a business. If you would like to learn more about the Po box, then read our Ultimate Po Box guide.

Inevitably, this choice can become bewildering, questions do pop up and one of them is:

What is the difference between a residential and a correspondence address in the UK?

In this post, we’ll explain clearly the difference, all that you need to know about a correspondence address, and where you might want to use one.

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Residential Address

Firstly, let’s understand what actually residential means. According to Merriam-Webster, the general definition is: used as a residence or by residents. Meaning a building where you live on an official basis.

What is meant by an official basis is that your verified home is in the UK, a place where you permanently live. Expats, or to be precise expatriates – persons who move away from the UK. Can have their home in both the UK and a foreign country at the same time.

Furthermore, the building where you live in the UK. It must be liable to pay council tax – it cannot be a disused building. Also, be recognised on the Post Office national address database as a deliverable address. You can check the viability of any address within the UK on the Post Office website.

It’s worth bearing in mind. If you have been physically present in the UK for 183 days or more in a tax year, your home was available to use for at least 91 days and spent time there for at least 30 days in the year. Then, you will be classed automatically as a resident in the UK for that year and will be liable to pay income tax. More information is available by browsing the UK Government RDR3: Statutory Residence Test (SRT).

Permanent residency and a resident for tax purposes

It might not be obvious, but permanent residency and a resident for tax purposes are two different legal statuses. You can stay in temporary accommodation, or with friends and be liable for UK income tax – you can live abroad and still be a UK resident for tax – dual residence. But being a resident for tax purposes does not mean you are a permanent resident.

You could be subject to double taxation, you need to check carefully your status.

residential-home

 

When all the criteria are fulfilled, you can call it your official residence in the UK. In other words your home.

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Correspondence Address

Broadly explained, a correspondence address is where you can have your mail delivered. Because, you are not, or cannot, or are not able to become a permanent resident or citizen. Becoming a UK resident, or a citizen can be very time-consuming.

Strict immigration rules state to become a UK citizen you need to be 18 years old, of “good character” and lived in the UK for over 5 years. A UK VISA at most is only available for up to 6 months at a time.

Using temporary correspondence address is your only option, as you don’t need to prove you live there. As long as the address is a physical address, and is within the UK on the Post Office database. You can use it as a correspondence address.

Note: Verified with a supplier of this type of address. This is not the same verified as a permanent resident.

All providers by law are required to verify their customer’s identity – who they are conducting business with. Usually, it’s abbreviated to KYC – know your customer.

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So what is the actual difference between them?

It’s basically down to the legal status of an address. As a permanent resident, you can use your address to apply for a passport, bank account, credit card, or company director, because you have verified you live there, it’s your home.

Using a correspondence address, you don’t need to prove you live there as it’s only a temporary address. But you cannot apply for any of the aforementioned.

If you apply for a UK driving license, you need to prove your identity. As proven your identity requires certain documents, such as a passport, or other verified accepted documents. Using a correspondence address will obviously pose a problem. You would need to use your verified residential address in those circumstances.

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In what situations could a correspondence address be used?

A correspondence address for a person who needs complete privacy

Corresponding addresses differ from using a Po Box. Read our Ultimate Po Box guide. A Po box can be shared, in essence, your mail could be mistakenly picked up, or sent to another person. That will not happen with a dedicated address.

This poses a problem for the individual who needs to ensure complete privacy. Using this type of address is more private as it’s addressed to them personally. There is no issue with shared access. At OfficeClerk, we only scan the front of the envelope and mark it as private and confidential. The scan is then uploaded to our secure storage. The letter or package is then forwarded to the customer.

correspondence-address-mail

Your eyes only !!

The student to receive something personal

You’re at university and need your parents to send something personally. The confidentiality of a correspondence address would be the best solution. It will ensure it reaches you and is not accidentally collected by another person, as in a shared Po box.

You have a pen pal

Writing to a pen pal is still active today. Receiving a personal handwritten letter is a pleasure so many enjoy. This method of communication, often regarded as snail mail is still around despite the rise of social media. There is even a national celebration day planned for 1st June 2023.

There are abundant websites that enable you to search for a pen pal. The need to keep your home address secure is in your mind, but at the same time not want to give out a Po address to your newfound friend.

Then use the more personal touch of a correspondence address. It also has the added benefit nobody will see your confidential correspondence.

You are supporting a prisoner

Supporting the well-being of a prisoner as a volunteer is very rewarding. You may have signed up for a charity, but you need to ensure your safety is paramount. ttde o n

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Conclusion

We now hope you have a better understanding of the difference between correspondence and residential addresses and where you might use them.

The Author

jan

Jan

Janice is a founding member and enjoys writing informative articles to help entrepreneurs find the resources they need to grow their businesses.

Interested in reading more….

Free UK Po Box: Reasons why you should get one

Free Po Box: Reasons why you should get one

Home » Blog

Estimated reading time: 9 minutes

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You’re searching for a Free UK Po box. In this blog post, we’ll give you 5 reasons why you should get one. If you know exactly what you need, then skip this page and head over to this page.

FREE Po Box

£0.00/Yr

* T&C Apply

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Table of Contents
  1. Why you need a free UK Po Box
  2. Reason 1: To avoid unwanted visitors at your home
  3. Reason 2: For those who move around frequently
  4. Reason 3: If you’re homeless
  5. Reason 4: You’re in temporary accommodation
  6. Reason 5: A sole trader who does not require a full business address
  7. Conclusion

Why you need a free UK Po Box

free-po-box

 

There could be multiple reasons why you need a temporary address. Situations occur in life that is very frustrating if you are not adequately prepared. Unforeseen situations can lead to devastating consequences and life-changing in some cases. It’s a good idea to try and look ahead and see if any of the reasons we explore may pertain to yourself.

If you find any of the reasons might, or could be related to your future, or present predicament. Then you will have information on how you can go about helping yourself. Remember, it’s always best to close the stable door before the horse can bolt, rather than the opposite way around.

We will explain some of the reasons why you should get a Po box. If you want to know more about the Po box, then read our ultimate guide.

Reasons you should get one are:

  • To avoid unwanted visitors to your home.

  • An address for those who move around frequently.

  • A fixed address if you’re homeless.

  • An address if you’re in temporary accommodation.

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Register your free box address

Reason 1: To avoid unwanted visitors at your home

You hear a knock at the door and open it

Standing there is a person trying to sell you something. This can be a nuisance, annoying, frightening even intimidating to the vulnerable person. How did they get hold of your address? What makes those people think you would be interested?

Some of these people could be fraudulent, they may attempt to sell you counterfeit goods or gather information about your property. They may try and pass themselves off as employees of a utility company and use this as a way to gain your confidence and access to your home.

A ‘Conman‘ as they are most commonly known as, are confidence tricksters. They are very skilled in what they do. They can and do pass themselves off very easily as people you would trust.

You might also be surprised to hear that the details you supplied to a website when you signed up are often sold to third parties called data brokers. Selling your details is big business despite the risk of up to 20 million euros in fines.

burgled-home

 

 Professional burglars will assess your home before breaking in.

Burglaries, on average, are carried out every 108 seconds in the UK. A published report by the UK Government has stated the average cost to the unfortunate burglary victim can be as high as £3,420.

Burglary items are then laundered through an underworld of unscrupulous individuals, notably called a fence by criminals. Making it very difficult to retrieve your stolen goods by the police.

Inevitably, you will claim your loss from your insurance company, but this will result in your insurance premiums increasing. Couple this with the fact you will need to pay your insurance excess, which can in some circumstances be as much as the item that has been stolen. So, in essence, you are saddled with the loss.

You also need to take into consideration that a stranger has ransacked your beloved home. Rifled through your belongings. Which will only increase your anguish even further.

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Register your free box address

Reason 2: For those who move around frequently

You’re an online blogger or a vlogger who is constantly on the move

You are constantly trying to find the next location to write about, or to film the next video. It’s a demanding job creating new content and you don’t need the extra burden of worrying about leaving your home unattended.

The salesperson who travels long distances

Achieving sales targets can become a challenge in the best moments in sales jobs. A client mailed you some figures. He does not trust emailing them as attachments. You need to gain access to them before the meeting. The easiest solution is to get a free Po box and have them scanned and uploaded. You can access them on our secure storage platform and download the pdf file onto your PC. Solving the problem for you.

sales-person-on-the-go

The long-distance lorry driver

Driving for extended periods is a real strain. The day has just become a nightmare. You have broken your phone and you now need a new one.

Working without a phone in the modern world is impossible in some circumstances. With no access to emails or phone calls could lead to missed deliveries or goods delivered to the wrong place.

Send it to your free Po box and we will forward it to a destination of your choice.

You require access to your mail. You don’t want to reveal you are away from home and where you live.
Friends could accidentally tell the wrong person you are away from home. They in turn can tell their friends.

With most people having access to social media, everyone gets to know you are away, including the people you don’t want to know.

Visiting friends for an extended period of time

We all like to enjoy our holidays, and even better if you combine it with visiting friends, especially if they live in a beautiful part of the country. But what if you decide to stay longer than you planned?

The answer is a free box address. Have your mail redirected before you leave home.

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Reason 3: If you’re homeless

There are over 227,000 people homeless in the UK, according to the Big Issue magazine. As tenants are prosecuted by landlords for non-payment of rent, the resulting evictions have increased this figure, according to a report published by Heriot-Watt University.

With many sleeping on the streets or in dismal alleyways. The need to obtain an address is crucial in order for homeless people to access benefits such as banking, healthcare, and Universal Credit. They could miss out on important letters and appointments which can lead to further hardship.

Having access to a free Po Box would benefit you as a homeless person enormously. You can access your mail online, or with a phone.

If you are one of these unfortunate persons and are in deep despair. There is always help at hand from the wonderful people at the Samaritans who you can contact at any time of the day.

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Register your free box address

Reason 4: You’re in temporary accommodation

You are moving home and waiting for a new house built

It’s an exciting time and you’re waiting for the builders to finish. Undoubtedly delays are inevitable. You could be there for more than you planned. There could be a really wet spell, or getting some unique building materials that your builders need.

On large construction projects, it’s common for the customer to change the internal layout. This will involve communication with your architect to resolve problems and approve plans. Any delay in communication could be costly to you. The builders could charge for wasted time.

Accessing your mail is vitally important.
Have your mail scanned and uploaded to our secure storage facility. Grant access to your architect and builder. You can then discuss any changes, and even make adjustments to the plans yourself before uploading them to your account to be downloaded.

Want to use another system? Our mail system can integrate with other popular document storage platforms. Open a free box and set your account options to upload to another document storage system we support.

Your home sold and you are waiting to complete the sale complete the sale

Conveyances by solicitors can be notoriously slow. It can be very frustrating while they communicate with other parties involved. Missing vital documents can result in you being gazumped – other potential buyers outbidding you. Obviously, this would be very down heartening. To lose the home of your dreams.

In this section, we explored situations you can use a free Po box whilst in temporary accommodation. However, receiving a lot of incoming mail, it would economically make more sense if you purchase a paid plan and save yourself some money. Whatever your decision, our cheap Po Box plans may be just what you need.

Alternatively, you may decide you require a more confidential address. A correspondence address could be used, especially if you are dealing with a solicitor. More information on what is a correspondence address.

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Reason 5: A sole trader who does not require a full business address

You are starting your new business, not sure if you need a full business address. So, opt for a free Po Box. This type of address will be adequate for the very small trader who works from home. Who requires the protection a box address affords but does not expect much, if any business post.

Your free box address can be used to receive small parcels. But it’s not the image you want to portray to your customers, especially if they need to return an item. How your customers see you as a business is very important.

There are other important factors you should consider when using this type of box address. Namely, if the box is a shared free box.

As your business grows and you decide you require a more professional image. Then head on over to our sole-trader page and upgrade your free box account to sole-trader status. You can find more information on the different types of business entities in our blog post.

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Conclusion

We now hope you have a better understanding of when you may need a free Po Box. The many reasons you may encounter.

The Author

jan

Jan

Janice is a founding member and enjoys writing informative articles to help entrepreneurs find the resources they need to grow their businesses.

Interested in reading more….

How to set up as a Sole Trader or form a UK Limited Company

How to set up as a Sole Trader or form a UK LIMITED Company.

Home » Blog

Estimated reading time: 8 minutes

sole-trader

You’re starting a business and not sure where to start. In this post, we give you helpful advice on setting up as a sole trader or forming a company. Helpful tips and advice to help you on your journey to success.

Get your all inclusive Company Formation
here

Table of Contents
  1. Where do I start?
  2. What are the different business structures?
  3. Registration as a Sole Trader
  4. Registration as a Ltd Company
  5. Get an accountant
  6. Market your idea
  7. Conclusion

Where do I start?

Brain-storm-your-idea

Brain Storm your idea.

A good place to start is to have a business plan. You can download Free business plans from the Princes’ Trust. This should consist of at least all the goals necessary to ensure you have a successful business.

Summary of the main points you need to consider:

  • A financial strategy.

  • Your customer base.

  • What you are going to sell?

  • How are you going to market your products?

  • A business structure.

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What are the different business structures?

sole-trader

Sole Trader

Registering yourself as a sole trader or forming a company has its pro and cons.

Setting yourself up as a sole trader is the easiest way. All the money you earn is yours after you subtract any valid expense you incur in running your business, the resultant amount after tax is your ‘drawings’ – your personal income. As your earnings are not taxed at source, as in PAYE, you need to keep accurate records and submit a self-assessment tax return.

Is sole trader the same as self-employed?

They’re classed as one and the same. Working for yourself, you’re by definition a sole trader.
Working for another person or company, you’re classed as employed. You can work as self-employed and work for someone else at the same time. This is usually common if a person is part-time or does some other work besides their main employment. What’s important is you inform the tax authorities of your employment status.

Pros and cons of a sole trader setup

The con of being a sole trader is you are personally responsible for any liabilities incurred whilst running your business. The pro is, that you are your own boss and you make all the decisions.

Forming or incorporating a UK company is not difficult and it can protect you from liabilities as the company is a legal entity in its own right and recognised by law as a person with its own obligations and legal rights. You don’t take ‘drawings’ from a company as you do as a sole trader. You’re paid in the form of a salary or PAYE wages. Money is also taken from your company in the form of dividends from the profits of your company.
You can sell shares from your company. This is a good way to raise capital as you can set a price per share as your company grows.

Pros and cons of a company setup

The cons of such a setup are the administration of running a company is high. The pro is, that you portray a professional corporate image and are protected from liabilities. A more comprehensive explanation of how to incorporate limited companies is recommended to read before you go down this path.

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Registration as a Sole Trader

It’s recommended that you open a business bank account. This is a necessary step so you can separate your business earnings from your personal account. You also need a business address. Your home address can be used, but this can expose you to identity theft and unwanted cold callers, especially if your business is online. At least use a Po box address if you are allowed.

Pick a business name, it’s a good idea to use one that reflects what you intend to do. Research the name to ensure that name is not currently used by another person or company.

You will also need to inform the tax authorities, in this case, HMRC. There is plenty of help and guidance on the UK Gov website. It’s also a good idea to educate yourself on income tax rates and VAT rates.
Even though you need to employ an accountant, having some insight is never a bad idea.

Sign up here for your Sole Trader business address

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Registration as a Ltd Company

Firstly, register your company. The name should be significantly different from any other company on the register. You can search on companies’ house to check if your proposed company name already exists on the register. If it does exist on the register, then you will need to think of a new name as any attempt to register will result in a refused registration.

incorporating-a-company

Company

A person of significant control is required – PSC, can control the company, though having more than 25% of shares, or, more than 25% of voting rights in the company, or, the right to appoint or remove the majority of the board of directors.

A director is required to ensure the company meets all of its statutory requirements. Finally, a company secretary is required, this can be the director and is the usual case in small one-man band companies. The director also needs an address for any statutory mail they receive, the company also needs an office address. You can use a Po box address in some circumstances, but it’s prudent to check. A provider who can set up your company usually provides these for you.

As we now know a company is a legal entity, you will also need to open a bank account in its own name. Applying for a bank account will require you to present your business plan to the bank. Also, all the names of the company directors.

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Get an accountant

You need to employ an accountant. Keep all receipts and ensure you keep accurate records by utilising either spreadsheets or dedicated software.
You should always consult a qualified accountant on tax and accounting matters. A good charted accountant will save you a lot of headaches over time.

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Market your idea

You need to market your product. This is where the hard work starts if your new business is to succeed. There are multiple avenues you can explore.

Answer the public

This online site answerthepublic is free to use and enables you to research what people are asking on every topic you can imagine.

ask-the-public

Google Trends

Google also offers free online tools like google trends. This lets you harness the power of Google and see what people are searching for.

google-trends

Social Mention

Social Mention is a real-time search engine. Extracting data from social media platforms.

Social-mention

Other avenues that are worth exploring are setting up a website. This can be time-consuming, but can reap rewards in the long term if it’s well designed. The upside of having your own website is you will be able to forge your own brand and style, but can be expensive.
Facebook and Instagram are other channels that can be used to further your path to a successful marketing campaign. As can word of mouth or better still recommendations.

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Conclusion

We now hope you have a better upstanding of what you need to do when starting your business. Either being a sole trader or incorporating a company.

The Author

jan

Jan

Janice is a founding member and enjoys writing informative articles to help entrepreneurs find the resources they need to grow their businesses.

Interested in reading more….

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