It depends how long you've been trading as if it's not long and you can prove you are being careful within your budget competitive with your prices offering what your clients want getting in more than spending out ect they will class you as a start up. How I see it is I've got a year pretty much to earn a large wage or if my business can't do that I will be classed as a hobby business as it doesn't give me a good enough wage. They don't ask how much your turn over has increased any major purchases you've had due to expansion or repair and maintenance, if you have employees ect. It's very black and white and they are very cagey about how they make the decision and what the criteria is! It's ridiculous. So basically I have a year to work my ass off even more! Luckily christmas was very good for me and the clients have mostly rebooked for jam or feb which is keeping the momentum going, still a worry though.