I been running my website for a couple of months now and am starting to see a significant turnover. My website sell advertising to local businesses and sells tickets for nights out in the local area. I make a very small amount revenue from adsense. I know the legal form of the business etc but what do i need to do to register my business in the UK. How do I inform the inland revenue that I have another source of income? Thanks for your advice in advance. Jamie
You need to tell the IR you have another source of income and then start filling out tax returns every year. I'd suggest going to a high street bank, opening a business account and getting some free advice there but decline or defer any insurance or credit cards they try to sell you.
I'm guessing the business is just you -- you're not in a partnership or anything like that? If that is the case, that makes you self employed and you'll need to register as such with HMRC. Although if you only work on the website in your spare time (i.e. you have a full time job) and/or your profit is low, you may not need to register and can just put it as 'other income' on your normal tax return. It really is rather complicated, so I suggest you read through the stacks of information on HMRC's website. If however you want to form an actual company (LLP, Ltd, Plc, etc.) that's different and you'll need to read the information at Companies' House.