Tax Address of a British Company

For legal reasons, every company must establish a tax address in the country they do business in. There, they will receive mail and notifications of fiscal authorities of the nation the corporation is set up. In this article, I will explain everything an entrepreneur should know about the tax address of a British Company.

What is the Company’s Tax Address?

A company’s tax address is the location fiscal authorities will send the company communication about tax payment, such as reminders of filing the declarations.

There are certain reasons why it is necessary to tell HMRC (His Majesty’s Revenue and Customs) your company’s tax address. Firstly, it is a legal requirement. Secondly, not receiving the letters fiscal authorities send you may end up in tax evasion and, consequently, being charged with penalties or even prison. At last, it is essential for a business’ effective and efficient tax management.

Sometimes people mix up the terms tax address and registered office. It is usual that, in the case of limited companies and limited liability partnerships, it is located in the same address, although this is not necessary. The first one was explained in the previous paragraph. The second one refers to the main offices of a company, where the corporation carries out most of its business activity. The owners must specify both during the register of the company within the Companies House and the HMRC.

Requisites to Establish the Tax Address of a British Company

Establishing a tax company’s address is a required process to keep the corporation within the British laws. Nonetheless, it is not a complex procedure at all. Next, I will mention some of the requisites that you should keep in mind

Choosing a suitable address. It will appear in public registers and in official documents, so you should choose it wisely. We also have to consider that it must be a physical address, so, for example, post office boxes are not valid.
You shall add the tax address during the company’s register in the HMRC. It is necessary to receive notifications about tariffs or for declaring Corporation Tax and VAT. In the next article, you can find more information about how to pay taxes for a British company.
In the event that you would change the business’ tax address, you will need to contact the authorities to modify it in the registers. Otherwise, you might not receive fiscal organization notifications and so, as I explained in the previous section, it could mean penalties and sanctions for the company.

Important Considerations about Establishing the Tax Address of a British Company

Tax Address and Personal Domicile of a British Company

A company can establish its tax address in a personal domicile in which its director or an important partner of the business lives. However, this is not advisable because this address will appear in public registers. This could affect their personal privacy.

Reputation and Expansion of the Business

Having a tax address gives a company extra credibility. This is because providers, clients and partners will be able to check that the corporation functions and that it complies with all legal requirements. Additionally, putting the company’s tax address in one of the business hubs or main cities can help to present a more professional image of our corporation. Also, many companies prefer to work with partners established in stable markets, and the UK falls into this category. Therefore, it can help you find businesses to collaborate with. At last, it will allow an easier access to those markets that have signed trade deals with the UK.

Public and Private Funding

To access governmental loans and subsidies, it is necessary to have a tax address in this country. Banks and other private entities may also ask for this requirement to fund businesses or to participate in them.

Jurisdictions

As it happens with registered offices, you must place the company’s tax address inside the jurisdiction in which it was registered. There are four different jurisdictions in the UK: England and Wales, Wales only, Scotland and Northern Ireland. Nonetheless, it is not necessary to be located in the region where the company does its business activity.