Reply to: Is the accountant being awkard?

[BrowneIssue]

Renting and registered address

I have now rented six homes through five letting agents over 12 years whilst a Ltd Co. contractor.

Every tenancy agreement has said "may not run a business from the address".

In each case - being a believer in permission first rather than behave like the government later - I have spoken to the letting agency about it and it has been no problem at all.

What they actually want is to not have members of the public attending the premises as clients.

When I start to explain:

a) the nature of my work (IT contractor working on client sites);
b) that I work as a Ltd Co. therefore need a grand total of one Companies House letter once a year and 4 VAT letters a year sent to me so I need it to be the Registered Address;
c) that the only visitors I will ever get will be a tax inspector about once a decade;
d) that the business activity at the address will consist of doing my accounts

they have always said: "That's OK, We have a few of your sort on the books. That's OK, you carry on. Just let us know if your circumstances change."

I think in one case I did get them to agree to strike out a "cannot register a company at this address" once they knew I had been trading since 1995.

So my advice is, just ask. (And if they say 'no' then you're buggered and have to rent through someone else!)

[Gonzo]

Do you have a bank account yet? The bank will want a real address too.

I had intended to try and not use my home address at all on anything and set up a PO Box.

The bank would not accept the PO Box address for statements though so when it came to the VAT application I no longer worried about it.

[VectraMan]

Do you have a bank account yet? The bank will want a real address too.

If your landlord was somehow informed, that would be a terrible breach of personal privacy by HMRC. And that hardly ever happens.

[max]

Then I guess I could register my home address for VAT, and then sign up to administer the VAT online so I don't get much mail at home.

Will make no difference to the amount of mail. VAT online will give you more control.

Silly question but is there a case that my landlord will get mail through the post stating that my company is registered for VAT under his address?

nope. (unless you leave and don't change the address...but then you will have gone anyways...so no problem)

Relax....and get on with it! You're worrying to much!

[kesm]

Then I guess I could register my home address for VAT, and then sign up to administer the VAT online so I don't get much mail at home.

Silly question but is there a case that my landlord will get mail through the post stating that my company is registered for VAT under his address?

[r0bly0ns]

That is what I think the clause is in the tenancy agreement is for, to stop me using the flat in a non-residential manner that would involve noise or customer visits etc.

Agreed, when I first started working from home I was renting, and I had a clause in my tennacy agreement saying that I could not run any business from home.

I had a quick chat with my landlord and he told me to put the details in writing about how much stock I would be keeping what equipment I would be using and how many visitors to expect, and send it to his lawyer.


I sent off a leter stating how many computers I would be using (pointing out that it would be no more than an average family of 3 may have anyway), that I would hold no stock and would only expect the ocasional visitor.

A couple of weeks later I recieved a reply saying something along the lines of as my business would not causes a nusance to any of my neighbours, and would not act as an additional attraction to burgalers, it was fine.



IMO it's best agreement in writing if you have a similar clause, however as others have said, if the clause is just that you can't register a business then you are fine.

[VectraMan]

I agree with The Great Gonzo. There's a bit of a difference between operating a business that has people visiting all the time, and getting one letter every 3 months.

Don't stress it.

[SueEllen]

Well, the tenancy agreement is between my flatmate and the landlord, not me, but my flatmate did say to me that the landlord is not allowing us to register a company at our home address.

Is there a way that the landlord can find out if I put the home address as the address I register for VAT?

Is common practice for contractors to register their home address in the VAT form and not their company's registered address?

thank you

1. Does not matter. As long as you are not causing a nusiance to your neighbours i.e. running a brothel, having business visitors, your main place of business can be your home address.

2 Yes.

[Gonzo]

I am in the same situation and don't give it too much thought.

The tenancy agreement prohibits registering a company. That's OK, myCo is registered at the accountant's office.

The home address is the one that the VAT people use, although since registering to administer the VAT online I don't think they have sent anything through the post.

Since the nature of the work that I do at home is not going to cause any inconvenience to the neighbours I can't see that the Landlord is ever going to find out. That is what I think the clause is in the tenancy agreement is for, to stop me using the flat in a non-residential manner that would involve noise or customer visits etc.

So I wouldn't worry if I were you. However, if you get evicted because of this I will not be accepting any responsibility.

hth

[kesm]

All sorts of issues here:

1. What does your Tenancy Agreement actually say? Is it: i) you cannot run a business from the property or ii) you cannot have a Limited Company registered at the address.

Well, the tenancy agreement is between my flatmate and the landlord, not me, but my flatmate did say to me that the landlord is not allowing us to register a company at our home address.

Is there a way that the landlord can find out if I put the home address as the address I register for VAT?

Is common practice for contractors to register their home address in the VAT form and not their company's registered address?

thank you

[Ardesco]

Hi all,

I completed my VAT application form. In the form there is a field "principal place of business". I put that as my registered company's address, which is my accountant's office.

The accountant came back saying 'You will not be able to register for VAT with this address as the VAT office are aware that many of our clients use this as a registered office. I will print another front page and complete it with your home address. This means that when you are sent your VAT certificate and subsequent VAT returns they will be sent directly to you so minimising the risk of anything going missing in the post."

Now I am not very happy with this, because my landlord does not allow for a company to be registered to his address.
I should be able to use the accountant's address to register for VAT, shouldn't I?

Many thanks all.

No, he's not.

HTH

[Crossroads]

If I put my registered address down, how will that affect me?

Based on the information provided, it will:
1. Piss off your accountant (not clever).
2. Possibly piss off the VAT man, as it clearly is not your primary place of business. (very not clever).

[Crossroads]

My place of business is my client's office and not my home address.


Well then the only impact I see is that the VAT office will send all communication to my accountant and he will forward to me.

All sorts of issues here:

1. What does your Tenancy Agreement actually say? Is it: i) you cannot run a business from the property or ii) you cannot have a Limited Company registered at the address.

2. If your place of business is your client's office then you shouldn't be claiming any expenses as this would be a BiK.

3. If you place of business is your client's office, it makes me think you are a disguised employee.

The solution:

1. If your tenancy agreement states that you cannot have a Ltd Company registered at the address then no problem, as it is registered using your accountants address.

2. Your "home" is also your PERMANENT place of business. Do not forget that. Your client(s) site(s) are your TEMPORARY work places. Do not forget that either!

[SueEllen]

My place of business is my client's office and not my home address.

Then you can't claim travel expenses.

BTW The reason you can claim travel expenses is that your normal place of business is your address and your temporary place of business is your client's office.

[kesm]

If your main place of business is where you live then the fact that you are claiming travel expenses from that address means that you would be in breach of your tenancy agreement.

My place of business is my client's office and not my home address.


Well then the only impact I see is that the VAT office will send all communication to my accountant and he will forward to me.