How to Start a Market Trading Business in the UK

Market trading is one of the oldest and most accessible ways to start a retail business in the UK. Low startup costs, direct customer contact, and the ability to test products without committing to a shop lease make it an attractive option. Here is how to get the business side right.

Licences and Permissions

You need permission to trade at markets:

• Council-run markets — apply to the local council for a stall allocation. There may be a waiting list for regular pitches.
• Street trading licence — required for trading on public streets in most local authorities. Costs vary from £50–£500+ per year.
• Private markets — organised by private companies. You book directly with the organiser.
• Car boot sales — occasional sales are fine, but regular trading makes you a business in HMRC's eyes.

If you sell food, you must also register as a food business with your local council at least 28 days before starting, and hold a Level 2 Food Hygiene Certificate.

Sole Trader or Limited Company?

Sole trader — almost always. Market trading is perfectly suited to the simplicity of sole trader status. Register with HMRC and file a Self Assessment return each year.

Registering with HMRC

Register for Self Assessment within three months if income exceeds the £1,000 trading allowance. VAT at £90,000 turnover.

Insurance

• Public liability — essential. Most market organisers require evidence of cover, typically £5 million.
• Product liability — if your products could cause injury or illness
• Stock insurance — covers your products against theft, damage, or weather
• Employers' liability — if you hire helpers

Market trader insurance costs £100–£300 per year.

Claimable Expenses

• Stock purchases — products for resale or raw materials
• Pitch fees — market stall rental, street trading licence
• Stall equipment — gazebo, tables, display stands, weights, signage
• Packaging — bags, wrapping, boxes
• Vehicle costs — fuel, insurance, or 45p per mile
• Storage — warehouse or lock-up rental for stock
• Marketing — business cards, flyers, social media
• Card payment machine — hardware and transaction fees
• Phone and broadband
• Weather protection — tarpaulins, side panels, covers
• Insurance premiums
• Home office costs — for admin, ordering, accounting
• Accountancy fees

Track every expense. Accounted handles receipt capture and categorisation automatically.

Industry-Specific Tax Tips

Cash Sales Records

Markets involve significant cash transactions. HMRC expects full records of all sales. Use a simple till or recording system and bank your takings regularly. Digital card readers also create automatic records.

Stock Valuation

At your year end, value your unsold stock at the lower of cost or what you could sell it for. This reduces your taxable profit for stock you have bought but not yet sold.

Multiple Markets

If you trade at several markets each week, track your income and expenses by market. This helps you identify which pitches are most profitable.

Bookkeeping Tips

• Record every sale — cash and card
• Keep all pitch fee receipts
• Track stock purchases carefully
• Separate business and personal finances
• Count and value your stock periodically
• Set aside 25–30% of profits for tax

Accounted connects to your bank and uses AI to sort transactions. Built for UK sole traders.

Key Deadlines

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

Getting Started

Market trading offers a low-risk entry into retail. Get your licences, register with HMRC, and keep proper records from your first trading day.

Ready to set up your market trading finances? Sign up for Accounted and let Penny handle the bookkeeping while you serve your customers.