Guide to Starting a Home Bakery Business in the UK

Guide to Starting a Home Bakery Business in the UK

Starting a home bakery can be a dream come true for anyone who loves baking and wants to turn their passion into a profitable business. With over 7 years of experience running my own home bakery, I’ve learned the ins and outs of what it takes. From mastering food safety regulations to creating a loyal customer base, I understand the challenges and joys of baking from home. In this guide to starting a home bakery business, I’ll share things you need to know about starting your own home bakery business in the UK. Whether you’re just getting started or looking to refine your process, these tips will help you build a compliant, safe, and successful business.

1. Registering Your Business

Register with HMRC

  • You will need to register with HMRC.If you are running the business on your own, you will can register as a sole trader.

Register with Your Local Council

  • Notify your local council at least 28 days before you start your bakery. They will inspect your kitchen to ensure it meets food safety and hygiene standards.
  • Be aware that different local councils may have specific requirements, so contact yours directly for guidance and support.

2. Food Safety and Compliance

Training and Certification

  • Complete a Food Safety and Hygiene training course with a minimum of Level 2 certification. You can find these on the internet and they usually cost about £20.
  • It is highly recommended to complete the Food Standards Agency’s (FSA) food allergy training as well.

Safer Food Better Business

  • Download the “Safer Food Better Business” pack provided by the FSA. This pack includes all the paperwork an inspector will need to see, such as cleaning schedules and temperature logs.
  • Maintain a cleaning schedule that is filled out daily, including temperature checks for fridges and freezers.
  • Prove the accuracy of your thermometer monthly by testing it in boiling water (it should read 99-101ºC). Keep a record of this to prove it.
Purple allergen stickers

Allergen Management

  • Keep a detailed record of all recipes and the ingredients in them, including clear allergen labeling. Allergens must be in bold text, and ‘may contain’ allergens should also be included.
  • For pre-packaged foods, provide a full ingredient list on the packaging. Custom orders (e.g. cakes) should include a purple allergen sticker which you can buy online.
  • Keep an allergen matrix and food safety records accessible at all times to ensure customer trust and compliance with inspections.
  • Specify the type of allergens for nuts and gluten where applicable (e.g., ‘cashew nuts’ or ‘wheat gluten’).

Cleaning Products

  • Keep a record of all cleaning products used. Ensure they meet the correct British Standards (BS EN 1276 and BS EN 13697), which certify their effectiveness.

Traceability

  • Maintain a list of suppliers. Some councils require you to keep records of batch codes for all ingredients for tracing potential issues back to the source easier.

. Insurance and Property Considerations

Public Liability Insurance

  • Obtain public liability insurance. If you are selling at markets, most markets requiring a minimum of £3 million coverage.
  • Get product liability insurance to cover issues related to your baked goods.

Property Permissions

  • If you rent your property, obtain written permission from the landlord to run a home business.
  • If you have a mortgage, check with your lender to ensure running a business from home is allowed.

Home and Car Insurance

  • Notify your home insurance provider about your business activities.
  • If you use your car for work purposes (e.g. deliveries) inform your car insurance provider.

4. Financial Considerations

Income and Expenses

  • Keep detailed records of all income and expenses for your annual self-assessment tax return.
  • Track ingredient costs, utilities, packaging, marketing expenses, and any other costs associated with your business.

Pricing Your Products

  • Factor in ingredient costs, packaging, labour, overheads, and desired profit margins when pricing your products.

5. Expanding Your Home Bakery

Marketing and Branding

  • Create a memorable business name and logo to represent your bakery.
  • Use social media platforms like Instagram and Facebook to showcase your products and attract customers.
  • Consider setting up a website for online orders and to provide information about your business.

This is just a guide to get you started, but it can help you get your home bakery on it’s way to being compliant with UK regulations while building a strong foundation for a successful business. Best of luck with your new venture!

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