Starting a business from home is something many people are diving into as the world around us changes. In fact, around 37% of new food-based businesses registered since March 2020 have been based in domestic kitchens.
If you have a passion for food and a flair for whipping up delectable creations, then starting your own business selling foodstuffs could be perfect for you. However, if you are selling food to the general public, be it cakes, cookies, sweet treats, meals or more, then you need to make sure you take the following steps on board to ensure you are not only legal but giving your new venture the best chance of success.
Permits and Licences
First of all, you must have registered with your local authority at least 28 days before trading and ensure you have contacted the relevant authorities and agencies to ensure correct permitting for the type of business you intend to run. At a minimum, you need to have appropriate health and safety training, and while a food safety certificate isn’t legally required, it is recommended you have one. Level two is often thought to be the minimum standard you should aim for. You also need to comply with the Food Standards Agency guidelines to pass inspections to receive the highest standards possible.
Takeaway Food
If you are selling your food products for consumption off-premises, whether posting out for delivery or using third-party services such as Just Eat or Deliveroo, then there are additional standards and legal requirements you need to meet to ensure food is transported safely and handled correctly. Not only do you need to be using the correct takeaway packaging, but know the laws regarding shipping food to consumers, correct delivery techniques and transportation options such as thermal bags for hot foods, and refunds and customers’ rights regarding the food they have purchased.
Self Assessment
Registering as self-employed, be it a sole trader, limited company or partnership, is essential. HMRC needs to be informed of your trading so you can pay your taxes and ensure you are operating legally to avoid hefty fines.
You can earn £1,000 before you need to start paying taxes, and you need to file a self-assessment every financial year.
Food Waste Management
If you are preparing, cooking or selling food from your home, you must ensure that anything that isn’t sold or is unsuitable for human consumption is disposed of correctly. For example, bakery goods are suitable to send to landfill but not to be used for animal feed. Catering waste needs to be handled correctly and disposed of via the correct channels, all of which you can find out from your local authority or by contacting food waste collection services like WasteManaged.
When you dispose of different types of food waste, you need to use the proper disposal tools, and it is safe and secure.
Conclusion
The number of home-based food businesses has risen dramatically since the start of the pandemic. While there is a thriving market for home-baked goods and meals on demand, making sure you are operating legally and adhering to all the correct food standards will ensure you are keeping both yourself and your customers safe.