I am currently using adsense of my website, however things have started to get very complicated for me.
Basically googles adsense now requires a tax form to be completed. According to them , even though my business is completly located and operated in the UK because my website is hosted in USA ( florida ) i am required to obtain a Taxpayer Identification Number (TIN).
I had a look at the directions for obtaining a TIN ( http://www.irs.gov/businesses/small/international/article/0,,id=96696,00.html ) and its a complete headache. To be honest i wouldn't know where to begin, i only understand uk tax laws.

If i did manage to obtain a PIN ( after several weeks of hassle ) what would be the implications of this?
Does this mean i would have to fill in usa tax forms each year or even pay for the processing of these forms?

I am seriously considering moving my website to a uk hosting company which is another headache since i am very happy with my current hosting company.

Does anyone know of a way round this problem?

Would be interested to hear the answer to this, I cant see any reason why you would need to pay tax in both countries merely because one of your suppliers is out of the UK. It makes a total mockery of worldwide trade.

I emailed google about this matter. I was pleased by their quick response. For anyone worried about this, this is what they said.

Generally, utilizing a third-party United States (U.S.) web hosting
service to host your web pages, renting web servers that are located in
the U.S., or having your payment sent to a U.S. Post Office Box or mail
forwarding address, do not of themselves constitute a U.S. presence.
However, if you own equipment (such as web servers) located in the United
States or have employees located in the United States that are involved in
any way with the revenue earned through your participation in the AdSense
program, this would be considered a U.S. presence.

So basically if you rent a server and not own it you are not considered a U.S business presence.

What a relief!