Registering as Sole trader when making no sales and offering free services

[businessquest]

Hi - As a newbie with lots of (maybe silly) questions I've just had another brainwave!

I've recently been watching documentaries of young entrepreneurs (without having rich parents/family members). One of which apparently made their first million at 14 or 17 I think (can't remember which is which).

I'm just thinking.. At 14 would they have thought they needed to register as a Sole trader.. If they didn't wouldn't they be fined and their million be taxed leaving only half a mill (correct me if i'm wrong please). I hear so many of these stories about young millionaires but never really hear about all the legal aspects.

Anyway, there was this girl who offered design services for FREE, didn't sell anything physical but earned from advertisements on her site.

Hypothetically thinking, if I was to do the same thing and earn only from advertisements how would this work with HMRC.

Say I ran a blog just for fun, got millions of hits a month and was making money from the advertising only (i.e. Google Ads) would I need to register? Would it be after my first check? IDK.

Thank you!

 

[Williams lester]

Yes you would need to register with HMRC, the income from advertising would be your revenue. This is a business model that I have 2 clients using currently, so is nothing new.

If done well the potential is huge, and can quickly self generate as advertisers fight over the available space inflating ad. revenue and generating massive profits.