Selling hosting to a friend - any possible implications?

Hi there :) I have a friend who wants to host their website on my server as I have a VPS that runs all of my websites on there generating passive income from Adsense. Of course the money that comes from boils down to my Google rank and I was wondering if having too many sites coming off one IP/server could negatively affect them? I'm also wondering how that income works, do I just put it alongside my normal income, or does it come off as tax free because the server will cost more than I will make from him? He's mentioned use a tax calculator and sent me to www. .uk/ but I haven't found it much use so far. Any ideas for either question would be super helpful!
Thanks :)
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Since you said that you are planning to host your friend's website on your server - my suggestion is that you can definitely host it and there will be no any issues as long as you both to have some sort of agreement. And about the Income-tax sorry I don't have any idea on it! For that you can contact any IT consultancies. And if you are looking to share your VPS server resources with others then recommend you HostingRaja because there are the best in providing best hosting solutions to any business.
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