Is it legal and safe to start a web based business without actually registering the business?

Question

just using my own finances. do i need to fill out any paperwork

Answer 1

Well, here's one business idea, working online & offline:

http://www.worldwidecashgifting.net

Answer 2

I believe you have to Register your self-employed Business within a month or so of start to 'trade'** ..

Sooner or later HMRC (the Tax people) will find out & fine you at least £100 ...

If you fail to declare Income & pay any Tax due at the end of the first Tax year you may 'get away with it' for a while .. but sooner or later they will catch up with you & you will have to pay the back Tax & penalties (typically double the Tax you owe - which MAY be zero, since you only pay tax on profits and only when profits exceed about £5000 or so) ..

**Many people have started off selling on ebay .. since they start by selling their own goods second hand, this is not 'trading' ... only when they start BUYING goods (new or used, doesn't matter) with the specific intention of SELLING those goods again (for a profit) does it become a Business ..

NB> If your ONLY job is your business (and you have no other, PAYE, job) you will have to pay your own National Insurance contribution's .. and will typically not be entitled to Sick Pay or Unemployment (JSA) .. check out HMRC web pages