How to Start a Jewellery or Craft Business in the UK

Turning your jewellery-making or craft skills into a business is an exciting step. The UK has a thriving market for handmade and artisan products, with multiple sales channels available. This guide covers the practical and financial side of getting started.

Hallmarking Requirements

If you make or sell precious metal jewellery (gold, silver, platinum, or palladium), UK law requires items above certain weight thresholds to be hallmarked by an assay office before sale:

• Gold — above 1 gram
• Silver — above 7.78 grams
• Platinum — above 0.5 grams
• Palladium — above 1 gram

There are four assay offices in the UK: London, Birmingham, Sheffield, and Edinburgh. Hallmarking costs vary but typically range from £1–£5 per item. You must also register with the assay office.

Items below these thresholds are exempt from hallmarking but must still be accurately described in terms of metal content.

Sole Trader or Limited Company?

Almost all jewellers and crafters start as sole traders. Simple, low-cost, and perfectly suited to the income levels of a new handmade business.

Registering with HMRC

Register for Self Assessment within three months if your income exceeds the £1,000 trading allowance. VAT at £90,000 turnover — jewellery and crafts are standard-rated at 20%.

Insurance

• Public liability — essential if you sell at markets, fairs, or from a studio
• Product liability — covers claims if a product causes injury (important for jewellery with clasps, pins, etc.)
• Contents/stock insurance — particularly important if you work with precious metals or gemstones
• Employers' liability — if you hire help

Specialist maker insurance costs £100–£300 per year.

Claimable Expenses

• Materials — metals, gemstones, beads, findings, wire, cord, fabric, wood
• Tools and equipment — pliers, hammers, soldering equipment, polishing machines, kilns
• Hallmarking fees
• Packaging — boxes, bags, tissue paper, labels
• Market and fair fees — pitch hire, table hire
• Postage and shipping — for online orders
• Website and online shop — Etsy fees, Shopify, own website hosting
• Photography — product photography equipment or professional photographer
• Marketing — social media advertising, business cards, promotional materials
• Home studio costs — proportion of household costs
• Training and workshops — silversmithing courses, new techniques
• Travel — to markets, fairs, suppliers, at 45p per mile
• Insurance premiums
• Accountancy fees

Keep every receipt. Accounted makes tracking expenses effortless for makers and crafters.

Pricing Your Work

The biggest mistake makers make is underpricing. Include all costs:

• Materials cost — everything in the piece
• Labour — your time at a fair hourly rate (£15–£25+ per hour)
• Overheads — a proportion of your business costs
• Profit margin — at least 30% on top

For wholesale, the standard formula is: (materials + labour + overheads) x 2 = wholesale price. Retail price is typically wholesale x 2–2.5.

Selling Channels

• Etsy — the largest marketplace for handmade goods. Listing fees and commission apply.
• Your own website — Shopify, Squarespace, or WooCommerce
• Craft fairs and markets — direct sales and customer interaction
• Galleries and shops — wholesale or sale-or-return arrangements
• Instagram and social media — direct sales through DMs or linked shop
• Wholesale — selling to retailers at wholesale prices
• Commissions — bespoke pieces for individual clients

Track income by channel to understand where your time is best spent.

Industry-Specific Tax Tips

Stock Valuation

At your year end, you need to value your unsold stock. Value it at the lower of cost or net realisable value. Materials you have bought but not yet used are also stock.

Craft Fair Cash Sales

If you sell at markets and fairs, record every sale — including cash. HMRC expects complete records. Use a simple cash register or app.

Trading Allowance

If your total craft income is below £1,000 per year, you can use the trading allowance and do not need to register with HMRC or file a return.

Bookkeeping Tips

• Separate business and personal bank accounts
• Record all sales — online, market, and cash
• Track materials costs — they are your biggest expense
• Value your stock at year end
• Keep market stall receipts and fees
• Set aside 25–30% of profits for tax

Accounted connects to your bank and categorises your transactions with AI. Perfect for UK makers.

Key Deadlines

• 31 January — Self Assessment and payment
• 31 July — second payment on account
• Quarterly — VAT returns if registered

Getting Started

A jewellery or craft business lets you turn your passion into your livelihood. Get your hallmarking sorted if applicable, register with HMRC, and keep your finances organised from the first sale.

Ready to craft a successful business? Sign up for Accounted and let Penny keep your finances in order while you create.