Haha I must say, HMRC has got to be the most well documented jurisdiction I dealt with. I think you are right with HMRC. But I incorporated in one of the tax friendly countries in Eastern Europe. The way I understood the rule is, I only need to try to make an income. And I do. I have a paypall button. But, there’s no rule on the cost/income. I’m just spending money to try to make money, which is what every body does. I just happen to do it with less success.