I am currently trying to build a website and wonder if it is better to register a domain name with a UK based company rather than one outside of the UK? I recently registered with a US based company, but have since seen a couple of messages posted advising that there can be Data Protection issues involved if you choose to register your domain name outside UK. I am new to this, so would appreciate it if someone could give me some advice.

I would recommend registering your domain through a UK site. The main issue is really with the type of domain you select, as only a .co.uk or a .me.uk will protect your privacy by allowing you to withold your address from showing up in whois searches. You can find out more about personal privacy at Nominet UK which is the official UK domain name registry. The other thing to consider is that US companies do not adhere to EU and UK privacy laws, even if they are signed up to the Safe Harbor agreement this does not give as much protection. If you did want to use an American site which would hide your details, then you could use GoDaddy.com. I have a friend holding the .com of my site there, and absolutely nothing shows about her registration.