Martiko is in the very early stages of a new business and trying to understand the tax rules. Martiko plans to operate mainly online and is unsure if that is taxed similarly to a more traditional premises based business. Martikos friend Anko has advised him that he should consider the basis of income receipts, VAT and the trading structure. However, Martiko is confused and wishes to understand when and how he needs to record income and expenses and how he will be taxed and whether he needs to worry about VAT.

Required: Advise Martiko of the trading options (briefly) and which may be suitable to him, how he will be taxed and whether / how he needs to register for VAT.