When you start a business you must register with HMRC.
Generally HMRC say that you have to register your business when you start to trade although they do not provide a strict definition of what they actually mean by start to trade.
For a limited company HMRC consider the company to be active if it’s carrying on business activity, trading or receiving income.
This is reasonable rule of thumb definition to follow for all businesses and the general advice should always be to register sooner rather than later; keeping the housekeeping of the business on track is the very best way to get things off the ground and whilst business owners may not like the amount of Red Tape imposed on them, it is best practice to keep up to date with the statutory and regulatory obligations imposed.
