Setting Up a Ceramics Business - Legal Considerations

🎯 How to Legally Set Up Your Pottery Business in the UK

Often, this excitement can turn to overwhelm when people start to try and figure out the legal steps they need to take to make their business compliant with the law. It can be a frustrating hang-up, especially for creative people who just want to get on with making!

I want to stress that although it can seem confusing at first, the steps you need to take are fairly straightforward once you understand them, and once you set it all up correctly you won’t have to think about it much again.

We’ll cover how to register your business, meet safety standards, and protect both yourself and your customers  with a step-by-step approach.

Really, the main things you need to do are:

1. Register your business 
2. Open a business bank account
3. Track your finances and file tax returns
4. Get insurance
5. Make sure your products are safe and compliant

In the UK (at time of writing), you can make up to £1000 in side income without needing to declare it. Therefore, until you have made some sales and are getting near that number, you don’t need to do this.

You can choose to either do it straight away to get it out the way, or (as I’d probably recommend) wait until you have proven the concept and know that you are going to make a proper business out of it.

🧾 Step 1: Choose the Right Business Structure

Before anything else, you’ll need to decide what kind of business you’re setting up. In the UK, most solo potters start out as a sole trader, but there are other options too.

✅ Option 1: Sole Trader (Our recommendation)

• Easy to set up
• Low-cost, minimal paperwork
• You keep all your profits
• You’re personally responsible for any business debts or liabilities

Most people who sell a few pieces online or at markets start here.

✅ Option 2: Limited Company

• Your business is a separate legal entity
• Offers more protection for your personal finances
• A bit more paperwork and tax admin
• Can seem more professional (useful if you grow big or hire staff)

✅ Option 3: Partnership

• If you’re going into business with someone else
• You both share profit and responsibility

💡 Not sure where to start?
If you're working solo, go with a sole trader setup. You can always switch to a limited company later if your business grows. In our opinion, there is no need to make it more complicated than it needs to be in the beginning.

🗂️ Step 2: Register Your Business (It’s Simpler Than You Think)

If you’re making and selling pottery for money, even part-time, you’ll need to register with HMRC as a sole trader.

Here’s what you’ll need to do:

• Go to gov.uk/set-up-sole-trader and fill out the short online form
• Choose your business name — this can be your own name or something more creative
• Keep records of everything you earn and spend
• Submit a Self Assessment tax return every year

That’s it. No paperwork mountain. No scary interviews.

https://www.gov.uk/set-up-as-sole-trader

As previously said though, you can start selling without doing this to begin with.

🗂️ Step 3: Set Up a Business Bank Account

This step isn’t required if you’re a sole trader but it’s highly recommended.

Having a separate account for your business:

• Makes bookkeeping easier
• Keeps personal and business money separate
• Looks more professional when taking payments or applying for grants

Some banks even offer free business banking for startups.

🗂️ Step 4: Accounting Filing your tax return

You’ll need to make sure you are keeping full records of your costs and income for your business so that you can complete your tax return (and know how much money you are making!).

If your business is still small scale, a simple excel or google sheets spreadsheet does the job well.

HMRC make it really easy to submit your return. 

 https://www.gov.uk/log-in-file-self-assessment-tax-return

Read our Pottery Business Finances article for more information on this.

Follow Food Safety Regulations (If You Make Functional Ware)

If you’re selling items like mugs, bowls, plates, or anything intended to be used with food or drink, you’ll need to make sure they are food-safe.

This is covered under the Ceramic Articles in Contact with Food Regulations (2006) in the UK.

Here’s what that means for you:

• Use glazes and clays that are tested and labelled as food-safe
• Be cautious with low-fired or decorative glazes that may contain lead or cadmium
• For added safety, especially if you're glazing your own work, consider sending your pottery for migration testing (checking for harmful substances leaching into food)

Do I really need to test every mug I make?

Not necessarily. If you're using commercial, certified food-safe glazes and clays, and firing them correctly, you're likely in the clear.

Check out our article here: How to make food safe pottery

But you are still responsible for what you sell so be confident in your materials, and label items clearly if they’re not intended for food use.

💡 Tip: Keep documentation from your glaze/clay suppliers and stay informed on material safety.

🛂 Step 5: Licences and Permissions

In most cases, you won’t need special licences to run a pottery business, but there are a couple of exceptions:

• Market trading: Some craft fairs or councils may require a trading licence and public liability insurance check before you book
• Teaching pottery: If you're running classes, you will need public liability insurance and risk assessments in place

📞 Best bet? Give your local council a call or check their website, they’re usually helpful.

🛡️ Step 6: Get the Right Insurance

Insurance protects you from unexpected issues and in some cases, craft fairs and markets will require it. We strongly recommend getting product liability insurance, especially for functional wares. It doesn’t cost much and will give you a lot of peace of mind.

Suggested policies for potters:

• Public Liability Insurance: Covers injury or damage caused by your setup (e.g. someone trips at your stall or studio)
• Product Liability Insurance: Covers you if your pottery causes harm (like a cracked mug that burns someone)
• Studio & Equipment Insurance: Covers your kiln, tools, and stock from theft, fire, or damage
• Employers' Liability Insurance: Legally required if you hire anyone - even part-time helpers

💡 Craft insurance in the UK is affordable. Many potters pay under £200 per year for good coverage.

 Final Thoughts

Sometimes people find the idea of paying for insurance and registering as a sole trader a bit of a barrier, especially when they are not sure that they will actually end up making many sales.

We’d recommend to just get started making and selling, making sure you are tracking everything and that you are confident in the integrity of the products you are selling. Once you start making some sales and seeing some success, you can register as a sole trader, and get the insurance that you need.

By registering properly, setting up safely, and protecting yourself with good practices and insurance.

As always, let us know if you need any help at all with anything!

 

The Pottery People