As an online shop, there are laws that you will still need to abide by.  The Data Protection Act 1998 regulates the use of personal information that you take from the customers. This refers to computer and manual records. The eight data protection principles can be found on the information Commissioners Office website. The Consumer Protection (Distance Selling) Regulations 2000 requires that you ensure the customers can find specific information about your company before they make an order. The buyer must also receive an order confirmation and a “cooling off” period in case they wish to cancel their purchase. The Electronic Commerce Regulations 2002; outlines what information that you must share with customers. It also explains how to advertise and promote your goods online. Under the terms of the Companies Act 2006, on the website, as a registered company, the following information must be displayed; the full name of the company or LLP, the registered office address of the company or LLP, the registered number of the company or LLP, the place of registration of the company or LLP, if the company is being wound up, the VAT number (if VAT registered), membership details of any trade or professional association.

Don’t forget tax! – When you are successful and money starts rolling in, do not forget the tax man. Even as a small business, this needs to be done. HMRC estimate that the clampdown on small business that do not file their tax returns could bring in around £60 million. Penalty for improper record keeping can be up to £3000.