Laws On Selling Handmade Crafts UK That You’ll Be Glad To Be Aware Of
Not many of us wake up on an average day to break the law; however, it’s always a good idea to check just to make sure that we are not doing so inadvertently! Transitioning our crafting skill from a hobby to a side hustle and even a full-time business is remarkably straightforward on a legal level, especially for those who are starting small and looking to expand organically. Basically, you will need to register with HMRC, check you have the appropriate insurance in place and start trading. This is an oversimplification, but at the beginning of this post about laws on selling handmade crafts UK, we want to encourage you and reassure you that the various hurdles and regulations you need to be aware of are not insurmountable but can be tackled one by one and stepped over with relative ease. So, let’s take a look at some of the laws on selling handmade crafts UK.
The first thing you need to do is register with HMRC. You will need to decide whether you do this as a Sole Trader or as a Limited Company. To be a Sole Trader you need to be self-employed, have your own business and register for VAT if your earnings exceed £85,000 per year. You are personally liable if your business gets into trouble, you will need to fill in a tax form every year and you will pay income tax on your profits. As a Limited Company, you will need to choose a company name and a director and ensure oversight of your business. It is a more complicated process, but it does mean your business is classed separately from your assets thus offering more protection if the business gets into difficulties. There is a lot of helpful information online, including on the gov.uk site, so do some research and then you will be able to make a good, informed decision.
The next thing to check out is insurance cover. While product and public liability insurance are not a legal requirement, if you are planning on selling at any craft fairs (an excellent way to sell your crafts, for a multitude of reasons!), you will probably be asked by the organiser to have them in place. Employers’ Liability is, on the other hand, a legal requirement. It will protect you if a claim is made against you, not only by an employee, but also by a volunteer or contractor. Give us a call or drop us a line, and either Sam or Naomi will be able to explain how it works and give you a competitive quote for your new company.
This may be all you need to do to comply with legal requirements. However, depending on your product, there may be various regulations you will need to comply with. The Classification, Labelling and Packaging Regulations will apply to products which contain potentially hazardous ingredients such as candles, diffusers, soaps, or wax melts. Once you have checked these carefully, you can make sure that your packaging and labelling meet the requirements.
The updated General Product Safety Regulations came into effect in December 2024. These do appear a little complicated, but the updated regulations only apply to those wishing to sell within the EU or Northern Ireland. In this case, you will need to appoint a Responsible Person in either of these jurisdictions. They will ensure you comply with the safety regulations specific to these localities. For those selling in England, Scotland or Wales, there are still some labelling regulations you must comply with, such as listing ingredients and allergens. If you make handmade toys, you will need to do a risk assessment to ensure your products are safe for the age group intended and then apply for a CE/UKCA mark. Again, there is help both online and in person to help navigate you through this, and it is not as complicated as it may initially seem.
For those of you who create stunning jewellery out of precious metals, be that gold, silver, platinum or palladium, you will need to apply for a hallmark for your products. This will be your very own mark to put on all your unique creations. You obtain this by registering with a UK Assay Office, which is based in London, Birmingham, Sheffield and Edinburgh.
Hand-made toys are a great product, providing value for money, durability and a unique charm of their own. If you make handmade toys, you will need to comply with the Toy Safety Directive by doing a full risk assessment covering physical, mechanical, chemical, hygiene and radioactive aspects of your product. There is some form-filling involved, but it is a self-assessment. You also need to apply for a CE/UKCA mark. Again, there is help both online and in person to help navigate you through this, and it is not as complicated as it may initially seem.
Candles and cosmetics will need some care with labelling to ensure all ingredients are covered and noted, for example, if you have used essential oils. Check out the General Product Safety Regulations for advice on wording.
Finally, there are regulations around selling your products online, but most of these are fairly common sense and are aimed at making sure you protect both the consumer and yourself it any issues arise. For example, you must think about a refund policy and ensure your descriptions are clear. If you aim for transparency and clarity, you are well on the way!
While it is important to be aware of the laws on selling handmade crafts UK, and we hope this has been of help in pointing you in the right direction, don’t let the paperwork involved put you off stepping out and starting your own business. Once you have a grasp of the regulations you need to comply with, they will become part of your normal processes. So, get going and introduce your beautiful and unique creations to the world!
