How to Start a Catering Business in the UK: The Complete Guide

Turning Your Love of Cooking into a Business

If people constantly tell you that you should sell your food, you've probably already thought about starting a catering business. The good news is that the UK catering market is enormous — weddings, corporate events, private parties, meal prep, market stalls — and the barriers to entry are lower than you might think.

But there's more to it than being a brilliant cook. You need the right certifications, proper insurance, an understanding of the VAT rules around food (which are genuinely bizarre), and solid bookkeeping habits from the start.

This guide walks you through every step, from food hygiene to filing your tax return.

Food Hygiene Certificates and Local Authority Registration

Food Hygiene Certificate

While there's technically no legal requirement to hold a food hygiene certificate, it's effectively essential. Most clients and venues will expect a Level 2 Food Hygiene Certificate at minimum. You can complete this online in a few hours for around £20–£30.

For larger operations or if you're employing staff, a Level 3 certificate demonstrates deeper knowledge of food safety management and HACCP principles.

Registering with Your Local Authority

This one is a legal requirement. You must register your food business with your local council at least 28 days before you start trading. Registration is free and usually done online.

Once registered, environmental health officers will inspect your premises and give you a food hygiene rating. A rating of 5 is what you're aiming for — it builds trust with clients.

Kitchen Requirements: Home vs Commercial

You can run a catering business from your home kitchen — there's no law against it. However, your kitchen must meet food safety standards. You'll need adequate handwashing facilities, proper food storage, clean surfaces and equipment, and a documented food safety management system (a simple HACCP plan).

Many successful caterers start from home and move to a commercial kitchen as they grow. If home isn't practical, you can hire commercial kitchen space from community centres, churches, or dedicated kitchen-hire businesses for around £10–£25 per hour.

Registering as a Sole Trader

Just like any other self-employed venture, you need to register with HMRC as a sole trader. Do this before you start trading. You'll file a Self Assessment tax return each year covering the tax year from 6 April to 5 April.

If your turnover is likely to exceed the threshold, read up on Making Tax Digital requirements — quarterly digital submissions are becoming mandatory for more and more sole traders.

Insurance for Catering Businesses

Catering carries specific risks that make insurance particularly important.

Public Liability Insurance

Covers you if a third party is injured or their property is damaged during your work. Venues will almost certainly require proof of cover — usually a minimum of £1 million, though £2 million or £5 million is common for larger events.

Product Liability Insurance

This is the big one for food businesses. It covers you if someone becomes ill from food you've prepared. Given the potential severity of foodborne illness claims, this is non-negotiable. Many policies bundle public and product liability together.

Employers' Liability Insurance

Required by law if you employ anyone, even casually for large events.

Budget around £150–£400 per year for a combined policy, depending on your turnover and the scale of events you cater.

VAT Considerations for Food

VAT on food in the UK is notoriously confusing. Here's the short version:

• Most food is zero-rated for VAT — you don't charge VAT on it. This includes most ingredients, prepared meals for takeaway, and cold food.
• Hot food and catering services are standard-rated at 20%. If you're serving food at an event, you charge 20% VAT — once you're VAT registered.
• You must register for VAT if your taxable turnover exceeds £90,000 in a rolling 12-month period.

The distinction between "cold takeaway food" (zero-rated) and "catering" (standard-rated) is where it gets tricky. Delivering platters for clients to serve themselves might be zero-rated. Serving food to guests at a venue is standard-rated. The specifics matter, so check our VAT registration guide or speak to an accountant.

Allowable Expenses for Catering Businesses

Every penny you spend running your catering business can potentially reduce your tax bill. Here are the key categories — and for a comprehensive list, see our sole trader expenses guide:

• Ingredients and raw materials — everything you buy to cook with
• Kitchen equipment — pans, knives, blenders, chafing dishes
• Disposables — packaging, napkins, takeaway containers
• Kitchen hire — commercial kitchen rental costs
• Transport costs — fuel, van hire, or mileage at HMRC rates
• Insurance premiums — all your policies
• Food hygiene courses — training is deductible
• Marketing — website, social media ads, printed menus
• Use of home — a portion of household costs if you work from home. See our working from home tax relief guide.
• Bookkeeping software — including Accounted

Managing Seasonal Income

Catering is inherently seasonal. Summer brings weddings and outdoor events. December means Christmas parties. January can be quiet. This has practical implications for tax:

• Set aside 25–30% of each payment into a separate account for tax and National Insurance. Do this immediately. Our guide to reducing your tax bill has more tips.
• Be aware of payments on account. A good year means HMRC may require advance payments towards next year's tax — which can catch you off guard in a quieter year.
• Use quiet months productively — update your website, develop new menus, sort your bookkeeping.
• Consider cash flow management tools that forecast income against upcoming tax bills.

Bookkeeping for Catering: Tracking Multiple Events

Catering bookkeeping has a quirk: you often need to track costs per event. A wedding in Surrey and a corporate lunch in Birmingham have completely different ingredient costs, travel expenses, and staffing needs. Understanding profit per event helps you price future jobs accurately.

Good catering bookkeeping means:

• Recording income per event, not just lump sums at month-end
• Tracking ingredient costs per job, so you know your margins
• Logging mileage for each event — driving to suppliers and the venue
• Photographing every receipt immediately — wholesale purchases are easy to forget
• Reconciling weekly — don't let a busy events season mean three months of catch-up

How Accounted Keeps Your Catering Books in Order

Running a catering business means your hands are often literally full. The last thing you want is evenings wrestling with spreadsheets.

Accounted is built for exactly this. Snap a photo of your wholesaler receipt and send it to Penny on WhatsApp. She reads it, categorises the expense, and files it — all before your oven has preheated. Your bank transactions sync automatically, mileage is logged via a quick message, and your tax position updates in real time.

When tax deadlines roll around, everything is already in order. No panic. No late-night data entry. Just accurate books, ready to go.

Ready to simplify your bookkeeping? Try Accounted free for 14 days →

Related Reading

• Limited Company Expenses: What Directors Can Claim in 2025/26
• Tax Guide for Locum Vets and Veterinary Consultants

You may also find our Construction Subcontractor Insurance Guide helpful.

You may also find our Tax Guide for Private Tutors and Music Teachers helpful.

You may also find our Tax Guide for Uber and Deliveroo Drivers helpful.

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