When does a commercial web app become a business?

[Z064life]

I'm currently making a web application and it will include P2P auction ability (so users can sell goods to other users - this could be from any country to any country).

The web app is not a registered business but what I want to know is what tax laws do I need to be aware of? I have read that tax is no added to products sold via eBay, but what other considerations are there?


Thanks

[Webber3]

This sort of thing can all be covered by a declaration on a tax return. Any profit your users make from your site is their business and they should declare it on their tax return. Any profits you make yourself from the site need to be declared on your own tax return.

If you start making significant money from the site, it's worth setting up a Ltd company so that you can offset your expenses and any losses you might incur.