Selling Home Baked Goods in the UK: What You Need to Know (2026)

Is it legal to sell home baked goods in the UK?

Yes — selling food made at home is legal in the UK, but you must comply with food safety law. There is no specific "cottage food" exemption in the UK as there is in some US states. Home bakers are subject to the same food hygiene and labelling regulations as any other food business.

Step 1: Register as a food business

Before you start selling, you must register your home as a food business with your local authority. This is free and must be done at least 28 days before you begin trading.

You can register online via your local council's website. Search for "food business registration" plus your council name. Once registered, your premises may be subject to a food hygiene inspection.

Step 2: Get a food hygiene certificate

While not legally required, a Level 2 Food Hygiene certificate is strongly recommended for anyone selling food. It demonstrates that you understand food safety principles and is often required by markets, events and online platforms. The course takes around 2–3 hours and costs £10–£20 online.

Step 3: Understand your labelling obligations

If you package your baked goods before selling them — wrapping cakes, boxing biscuits, sealing bags of brownies — your products are classified as pre-packed for direct sale (PPDS) and must comply with Natasha's Law.

This means every product must carry:

• The name of the food
• A full ingredients list in descending order by weight
• All 14 major allergens highlighted in bold within the ingredients list

A handwritten label saying "contains nuts" is not sufficient. You need a proper ingredients list. Read our full Natasha's Law guide →

Step 4: Get public liability insurance

Public liability insurance protects you if a customer suffers harm as a result of your products — for example, an allergic reaction. It's not legally required, but it's strongly advisable. Many markets and events require it as a condition of trading.

Specialist food business insurance typically costs £50–£150/year for a home baker. Providers include Hiscox, Simply Business and Protectivity.

Step 5: Register as self-employed

Once you start earning money from selling food, you must register as self-employed with HMRC and complete a Self Assessment tax return each year. You can earn up to £1,000 per year from a hobby without declaring it (the trading allowance), but once you exceed this you must register.

Step 6: Price your products correctly

One of the most common mistakes home bakers make is underpricing. To price correctly, you need to know the true cost of each product — ingredients, packaging, labels, and your time.

A simple formula: add up all costs per unit, then multiply by 3–4 to get a retail price that covers overheads and generates profit. If your ingredients and packaging cost £1.50 per cake, your retail price should be at least £4.50–£6.00.

See our recipe costing guide for a full walkthrough.

Where to sell home baked goods

• Farmers' markets and food markets — good for building a local customer base and getting direct feedback
• Online via your own website — Shopify or Squarespace make this straightforward
• Social media — Instagram and Facebook are effective for food businesses with strong visual products
• Local shops and cafés — approach local independent retailers about stocking your products
• Etsy — works well for gift-oriented baked goods like biscuit boxes and celebration cakes
• Not on the High Street — similar to Etsy, good for premium gifting products

Managing your recipes and labels as you grow

When you're making a handful of products, managing recipes and labels in a notebook or spreadsheet is manageable. As your range grows, it becomes a compliance risk — outdated labels, inaccurate allergen information, and unknown margins.

FoodCore is used by home bakers and small food producers across the UK to manage recipes, calculate costs and generate Natasha's Law compliant labels automatically.