I would like to repeat once again. .co.uk domains are registered for 2 years but we give domain name free for 1 year only. If you had registered a .com domain name then the domain would have been free but .co.uk domains are registered for 2 years minimum as per policies of nominet and thats the reason we charge for 2nd years registration.
Basic reason behind giving domain name free for 1st year is to allow a potential customer to get started with his / her
website hosting with low cost and establish the web
website hosting in 1 years time span. Most of the customers get their
website hostings established in 1 year and once your
website hosting becomes more successfuly then you have no problem in paying domain renewal fee's for next year.