1. Can You Legally Sell Products from Home in the UK?
Yes, selling products from home is legal in the UK, as long as you follow local laws and regulations. You must:
- Register as a sole trader or limited company
- Inform your local council if customers or deliveries affect your neighbourhood
- Meet product safety, trading standards, and consumer protection rules
If selling food, additional hygiene regulations and Environmental Health checks apply.
2. Registering Your Home Business
To start legally:
- Register with HMRC as a sole trader or limited company
- If earning over £90,000 annually, register for VAT
- Obtain insurance (public liability, home business insurance if applicable)
- Get permissions if you rent or have a mortgage (landlord or lender approval)
3. What Can You Sell from Home?
Popular product categories include:
- Handmade goods (jewellery, candles, crafts)
- Print-on-demand products (T-shirts, mugs, wall art)
- Beauty products (cosmetics, skincare, soaps)
- Food or baked goods (if compliant with food laws)
- Home décor or furniture
- Digital products (eBooks, courses, templates)
4. Where to Sell Your Products
You can sell via:
- Online Marketplaces: Etsy, eBay, Amazon Handmade
- Your Own Website: Use platforms like Shopify, Wix, or WooCommerce
- Social Media: Facebook Marketplace, Instagram Shops, TikTok
- Local Markets: Fairs, craft shows, car boot sales
- Direct to Customers: Via referrals or local advertising
5. How to Set Up a Home-Based Store
Steps to launch:
- Pick a niche and validate product demand
- Create your product or source suppliers
- Take quality photos and write descriptions
- Set up your sales channel
- Price products to include materials, labour, packaging, and shipping
- Plan delivery: via postal services or drop-off
- Market your brand with SEO, social media, and email
6. Packaging and Shipping Tips
- Choose eco-friendly, cost-effective packaging
- Use Royal Mail, Evri, or DPD for UK-wide deliveries
- Offer tracking and returns to build trust
- Factor in postage costs into pricing or offer free delivery thresholds
7. Taxes and Record Keeping
You’ll need to:
- File Self Assessment tax returns
- Keep records of sales, expenses, and inventory
- Pay Income Tax and National Insurance on profits
- Possibly charge VAT if registered
Use software like QuickBooks or FreeAgent to simplify bookkeeping.
8. Marketing Your Home Business
Promote effectively by:
- Creating a strong brand name and logo
- Using Instagram, Pinterest, and TikTok for visual products
- Running Facebook and Google ads
- Building an email list with discounts or freebies
- Partnering with influencers or micro-creators
9. Pros and Cons of Selling Products from Home
Pros:
- Low overhead costs
- Flexibility and independence
- Direct access to customers
- Opportunity to scale online
Cons:
- Requires self-motivation and time management
- May need home adaptations (storage, workspace)
- Limits depending on landlord or council rules
- Competition from established sellers
Frequently Asked Questions
1. Do I need a licence to sell from home?
Usually no, unless selling food, cosmetics, or operating in regulated sectors. Always check with your local council.
2. Can I use my kitchen to make products?
Yes, if inspected and approved for food safety by Environmental Health (for edible goods).
3. Do I need insurance?
Public liability and product liability insurance are highly recommended.
4. How much money can I earn before paying tax?
You can earn up to £1,000 annually as a trading allowance before needing to register with HMRC.
5. Can I run a business from a council house?
Yes, with written permission from your housing provider or landlord.
6. What’s the easiest product to start selling from home?
Handmade crafts or print-on-demand items are popular beginner options with low startup costs.
Conclusion
Selling products from home is a flexible and rewarding way to start your own business in 2025. With the right planning, tools, and legal setup, you can turn your passion into profit from your kitchen table, workshop, or living room. Start small, grow smart, and let your home business thrive.