My parents came back from London today after spending the weekend with my sister.

My sister *oh superior lawyer* seems to think that it is against the law to sell online without some sort of license?

She didn't go into much detail and this was just relayed to me by my parents so who knows what happened to the translation along the way, but does this ring any bells for anyone?

Do you need some sort of trading license?

Well, every business needs a liscence. You need to be a registered trader under UK law and pay corporation tax. You need to delcare items or sevrices you sell and pay tax just like anyone else.

- wil

You might want to look at the Business Link site to find out more about the various types of business in the UK, including Sole Trader, LLC, PLC etc.

At the very least you will need to register with the Inland Revenue unless you're already self employed.

Thanks. I'm not referring to me specifically, I just mean in general.

Say I wanted to start a website selling cakes. Just say I'm a lonely old house wife that doesn't necessarily want to register a company, but wants to make a small amount of income.

If she was making under the amount of money required to pay tax then does she need a trading license or not?

I don't know the first thing about UK law, but in the US you could do this as an individual, as long as you reported the income on your tax return. There are some things for which you need to be incorporated or have a license, but for purposes as simple as those you outline, you can easily operate as a "sole proprietor". Still, it may be different in the UK...

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Well, my use of the word "you" was generic too.

This is a tricky area, and whoever was going to be trading would need to visit that site to get the info direct from the experts.

As well as having useful articles, it should also help them find their nearest Inland Revenue office and any voluntary (free) business advice centres in their area.

I've looked into the subject as far as my own needs and circumstances go, but they will be different for anyone else, and I wouldn't want to give advice other than to point them towards someone who knows the laws.

You don't actually need to register at Companies House to be a Sole Trader, for example, but there are disadvantages to that form of business as the owner is liable for all costs in the case of bankrupcy or legal litigation.

It depends on the amount of income, what the product or service is etc. whether they need a license. An obvious example where they would need a license is if alcohol was being sold.

Many other products and services that require a license are less obvious though.

I'm also fairly sure they need to contact the Inland Revenue even if their profits are/will be under the tax threshold, as they would have to fill in an exemption form. It isn't just tax they handle these days you see, they also collect National Insurance contributions.

Thanks.