Laws on Selling Homemade Crafts in the UK: What You Must Know

Selling homemade crafts in the UK is straightforward, but the legal requirements catch out many new sellers. There is no single "craft seller licence" — instead, you need to comply with a patchwork of regulations that depend on what you make and where you sell.

This guide covers the legal requirements that apply to most UK craft sellers, with specific detail on the regulations that apply to candles, soap, cosmetics, and other regulated products.

This covers requirements for England, Scotland, and Wales. Northern Ireland has some differences. This is not legal advice.

Product Safety: The Universal Requirement

The General Product Safety Regulations 2005 apply to every consumer product sold in the UK. Your homemade crafts must be safe for their intended use. This is not specific to regulated products — it applies to jewellery, textiles, woodwork, ceramics, and everything else you might sell.

In practice, this means you should:

• Test your products for foreseeable risks (a candle should not crack its container; a ceramic mug should not leach harmful substances)
• Provide clear instructions for use where applicable
• Not sell products you know to be unsafe

Product-Specific Regulations

Some craft products trigger additional regulatory requirements beyond general product safety:

Candles, Wax Melts, Reed Diffusers, Room Sprays

Products containing fragrance oils are chemical mixtures regulated under the GB CLP Regulation. Each scented product must be classified and carry a CLP-compliant label with hazard pictograms, signal word, and hazard/precautionary statements. You can check your existing CLP label with our free CLP label checker to identify any gaps before trading standards or a marketplace does.

See our guide to legal requirements for selling candles and wax melts for the complete checklist.

Soap, Bath Bombs, Skincare, Cosmetics

Products applied to the body are regulated under the UK Cosmetics Regulation. You need a Cosmetic Product Safety Report (CPSR) for each product, prepared by a qualified safety assessor. Our CPSR certification guide covers typical costs, the assessment process, and how to choose an assessor. You must also notify the product through the SCPN service before placing it on the market. Before you send a label to print, check your cosmetic label with our free checker to confirm it covers the mandatory elements.

Toys and Children's Items

Products designed for children under 14 must comply with the Toy (Safety) Regulations 2011. This includes conformity assessment, CE/UKCA marking, and specific safety testing requirements.

Food Products

Homemade food sold to the public must comply with food hygiene regulations. You must register with your local authority's environmental health department at least 28 days before you start trading — this is free.

Textiles

Textile products (clothing, soft furnishings) must comply with the Furniture and Furnishings (Fire) (Safety) Regulations 1988 if they're furnishing items. Clothing must meet flammability requirements and carry fibre content labels.

Business Registration

You must be registered as a business to sell crafts in the UK:

Sole trader — register with HMRC for Self Assessment. Free, and the simplest route for most craft sellers. Register by 5 October in your second tax year of trading.

Partnership — if selling with someone else, register the partnership with HMRC. Each partner files their own Self Assessment.

Limited company — register with Companies House. More administration but provides limited liability. Annual accounts and confirmation statements required.

You do not need a specific licence to sell crafts. The registration is for tax purposes.

Tax Obligations

Income tax: Report your craft income on your Self Assessment tax return. The trading allowance gives you £1,000 tax-free income from self-employment before you need to register, but if you're serious about selling, register early.

VAT: You must register for VAT if your turnover exceeds £90,000 in a 12-month period. Most craft sellers are well below this threshold.

Records: Keep records of all income and expenses. HMRC can investigate at any time.

Insurance

Product liability insurance is not legally required but is effectively mandatory:

• Most craft fair organisers require it
• It protects you if a customer is injured or their property is damaged by your product
• Typical coverage: £1–5 million

Public liability insurance is needed if you sell at craft fairs, markets, or any public event.

Several insurers offer combined craft seller policies covering both product and public liability.

Online Selling Requirements

If you sell online (Etsy, your own website, social media), additional rules apply:

Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013: Online buyers have a 14-day cooling-off period to return products (with some exceptions for personalised items and sealed goods that have been opened).

Electronic Commerce (EC Directive) Regulations 2002: Your website or shop listing must display your business name, geographic address, and email address.

Data protection: If you collect customer data (names, addresses, emails), comply with the Data Protection Act 2018 (UK GDPR). You may need to register with the Information Commissioner's Office (ICO). There is a fee exemption for some small organisations — check the ICO website.

Marketplace-Specific Compliance

Etsy: Requires compliance with local laws. Increasingly checking for CLP labels on chemical products (candles, diffusers). Can delist without warning.

Amazon Handmade: More stringent documentation requirements. May request SDS documents, CLP labels, or CPSR evidence before allowing listings.

Craft fairs: Organisers typically require product liability insurance, and some require evidence of product safety compliance. Check individual fair requirements before booking.

Sources

• General Product Safety Regulations 2005 (legislation.gov.uk)
• GOV.UK — Set Up as a Sole Trader
• GOV.UK — Submit a Cosmetic Product Notification
• HSE — The GB CLP Regulation
• ICO — Register with the ICO