If you operate your business from your home, rent a desk from a co-working space or you have access to an office space on a part-time basis, you’ve probably considered investing in a PO Box. After all, your home isn’t particularly suitable for receiving business mail (especially if there’s a lot of it), while you won’t want to send important correspondence to an office you only work from some of the time.

However, although a PO Box can solve some of these challenges, there is another, more beneficial option to consider.

In this article, we’re going to take a closer look at why a PO Box probably isn’t the best option for your business, including seven specific reasons you should consider a registered office address service instead - and one of them is a business deal breaker with the HMRC.

What is a PO Box (and why choose to use one)?

A PO Box is a postbox service provided by Royal Mail that allows individuals and businesses to receive mail without publicly disclosing their physical address. They’ve been around for years and might seem a bit old-fashioned, but they do have their uses.

Instead of deliveries going directly to your office or home address, post is sent to your PO Box at the local Royal Mail sorting office, where you can either collect it in person or have it forwarded to your main address.

In addition to protecting the privacy of their home address, there are a few reasons why businesses have historically chosen to use a PO Box. For example, if a business changed premises frequently but needed a consistent mailing address, or if they were worried about sensitive correspondence being left unattended at an office, they might invest in a PO Box.

However, when it comes to the PO Box vs virtual address debate, it’s worth noting that a PO Box can’t be used as a registered company address with Companies House, as it isn’t considered a physical location. This means a PO Box is no longer an option for businesses that want to avoid disclosing their home or office address. And that’s the key reason we mentioned earlier - the HMRC doesn’t allow them to be used as an official business address.

How to decide if a PO Box is right for your business

Deciding whether a PO Box is right for your business starts with understanding what you actually need from a business address.

If you’re simply looking for a secure way to receive mail because your current office isn’t suitable for deliveries, a PO Box might be a convenient solution. However, if your goal is to project a professional image or protect your home address, a virtual London office address is a PO Box alternative that is usually the better option. Unlike a PO Box, a virtual address can be used as your registered company address and gives you a credible business location that looks professional to clients and other key stakeholders.

It’s also important to consider compliance with other service providers, as many banks, payment providers and online marketplaces (including Amazon) require a verifiable physical address to meet Know Your Customer (KYC) regulations. Unlike a virtual office address, a PO Box won’t meet these requirements.

Finally, think about your long-term growth plans. PO Boxes are limited in functionality and don’t scale with your business, whereas a virtual office can grow alongside you, offering call handling, virtual office mail forwarding, and even meeting space as you expand. For most businesses, a PO Box is a temporary fix, but a virtual office address is the flexible and future-proof choice.

The 7 reasons why PO Box rental might not be a good fit for your business

Although PO Boxes used to be a popular service for startups and small businesses, there are seven reasons why they’re probably not a good fit for your company.

1. Not valid for a company’s registered office

The Economic Crime and Corporate Transparency Act 2023 requires an ‘appropriate address’ to be used as the registered business address for UK companies. As a result, PO Boxes are no longer valid for use as your business’s registered address. This is the deal breaker - it isn’t recognised by the HMRC and Companies House.

2. Weak proof-of-address for banks & KYC

To set up a business banking account, you’ll need to provide a document that proves you’re based in a physical location, such as a utility bill or lease agreement. As a result, most banks will not accept a PO Box as your primary address for opening an account.

Although this isn’t an issue from a privacy perspective, it does mean all of your business bank correspondence will be sent to your home address and potentially get mixed up with all of the other post you receive at your house.

Know Your Customer (KYC) regulations are also a factor, as numerous service providers also require a genuine physical address to comply with anti-money laundering and counter-terrorism financing laws.

3. Not suitable for Google Business Profile or local SEO

If your business sells products or services in a specific geographical area you should create a Google Business Profile, which will be the foundation of your local SEO strategy. This profile will include all of the important information about your business that customers might want to know, such as your telephone number, email address, website address and business address.

However, although you can promote a PO Box address to customers on your website and other owned channels, it is not acceptable for your Google Business Profile, which must be a genuine physical address. Without a verifiable location, your business won’t rank in local search results for the queries that matter most to your business.

4. Poor brand signals with clients, suppliers and marketplaces

Although you can use a PO Box on the majority of your customer-facing collateral, including for invoices, website, business cards and customer returns, they don’t build consumer trust.

People understand that PO Boxes aren’t permanent or genuine physical addresses for a business, and if a consumer can’t see where you’re actually based, they’re less likely to trust you. 81% of consumers say that a lack of trust is a deal breaker when making purchasing decisions.

5. No advanced mail handling features

A Royal Mail PO Box offers two options: either collect your mail from the local post office branch (where your PO Box will be based) or have it physically forwarded to the address on your application.

By contrast, a Hoxton Mix virtual office address service includes AI-powered mail scanning and handling as standard. After receiving your business mail, we’ll scan and upload it to your secure customer portal within one business day, while our AI agent HaiRoTM will categorise and summarise the mail, and also notify you that a new post is available to view.

What’s more, we can also forward the physical mail to any address worldwide—you’re not limited to the address you applied with.

6. Hidden costs and friction

Despite a PO Box offering limited features when compared to a virtual office service, they’re not actually cheaper to rent. A PO Box starts from £45/month, compared to our registered office address service, which starts from just £19/month, while many other providers also charge less for their virtual office packages.

What’s more, a PO Box comes with hidden costs and user friction, particularly the time and money required to collect your post from the local sorting office if you choose the Collect service.

7. Access limitations

With the PO Box Collect service, you have to go to your local collection point to receive your business mail, but access times are restricted and vary from branch to branch.

These access limitations could cause an issue if something urgent has been delivered to your PO Box and you can’t pick it up until the following day, or if the service is disrupted by a Bank Holiday.

By contrast, our online customer portal is accessible 24/7, meaning you never have to wait until the following day or until after the weekend to access your company correspondence.

Why you should use a virtual office instead

A virtual office is a smarter, more cost-effective alternative to a PO Box for modern businesses.

Unlike a PO Box, a virtual office address can be used as your registered office address, protecting your family’s privacy while enhancing your professional image with customers, suppliers and other stakeholders. A virtual office also helps you stay compliant with UK banking and Know Your Customer (KYC) regulations that require a genuine physical business location, while you can also use it with your Google Business Profile, boosting your visibility in local search results—something a PO Box can’t offer.

With Hoxton Mix specifically, you also benefit from advanced features such as AI-powered mail handling and an online customer portal, allowing you to manage your business post securely and conveniently from anywhere in the world.

With all of these advantages, you’d expect a virtual mailbox to be more expensive than a PO Box, but they’re actually much more affordable. Our virtual office services start from just £19 per month, compared to a Royal Mail PO Box starting at £45 per month.

What’s more, as your business grows, you can easily scale with flexible service add-ons such as hourly meeting room hire, a director’s service address, a virtual business phone number and exclusive discounts on business essentials via our Marketplace.

FAQ

Can you use a PO Box for a business?

As a business, you can use a PO Box to receive mail and parcels from clients, customers or suppliers. However, it cannot be used for official correspondence from HMRC or Companies House.

Can you use a PO Box for a registered business address?

No. As of 4th March 2024, it has not been possible to register your business with Companies House using a PO Box address—you must use a genuine physical location, whether that’s a virtual office, physical office or your home address.

Are PO Boxes cheaper than a virtual business address?

Prices vary from vendor to vendor, but a Royal Mail PO Box is more expensive than a Hoxton Mix virtual office address with AI-powered mail handling. PO Box Deliver (Royal Mail delivers your mail to the address on your application) and PO Box Collect (you collect your mail from your PO Box) both cost £45 per month, while our Registered Office Plan starts from just £19 per month.