I'm in a bit of a illegal hole at the moment. (I'm in UK) I started selling parts for a hobby in October to see if I could, and I could. I've since grown sales to around 3K a month and although I haven't taken any cash out of the "business" it has made a profit. (All profits are turned into stock)
I want to now legalize this business and continue trading (register business, company business bank account, shareholders, etc…)
What implications might I have with a backdated business startup? Do i have to pay taxes on profit even though it's not taxed and is used as a business expense as such?
Please go easy on me – I know this is technically illegal and I have had a lapse on doing this for way too long.