Compliance and Safety
Operating a food business online comes with legal and safety responsibilities. This guide covers key compliance areas, but always consult professional advice for your specific circumstances.
⚠️ Important: This guide provides general information only. It does not constitute legal advice. Consult a solicitor, accountant, or relevant authorities for specific guidance.
Food Hygiene and Safety
Food Business Registration
Legal requirement: All food businesses in the UK must register with their local authority at least 28 days before opening.
How to register:
- Contact your local council's environmental health department
- Complete the food business registration form
- Registration is usually free
- You may receive a visit from an environmental health officer
Applies to: Restaurants, cafés, takeaways, catering businesses, and home-based food businesses.
ℹ️ Note: Ordery is your ordering platform; registration is your responsibility.
Food Hygiene Certificates
Legal requirement: Food handlers must have appropriate food hygiene training.
Options:
- Level 1: Basic awareness (recommended for all staff)
- Level 2: Catering and retail (recommended for food handlers)
- Level 3: Supervisory and management
Where to train:
- Online courses (e.g., Chartered Institute of Environmental Health)
- Local colleges
- Private training providers
💡 Tip: Keep records of all staff training and certificates.
Food Hygiene Ratings
What it is: The Food Standards Agency rates food businesses from 0 (urgent improvement needed) to 5 (very good).
How it works:
- Environmental health officers inspect your premises
- They rate hygiene, structural compliance, and management systems
- Ratings are published online and may be displayed at your premises
Why it matters: Customers check ratings before ordering. A rating of 4 or 5 builds trust.
How to maintain a high rating:
- Follow food safety practices
- Keep premises clean
- Store food at correct temperatures
- Train staff regularly
- Keep records (cleaning, temperatures, supplier details)
Allergen Information
Legal Requirement
UK law requires: You must provide allergen information for all food and drink you sell.
The 14 major allergens:
- Gluten (wheat, barley, rye, oats)
- Crustaceans (crab, lobster, prawns)
- Eggs
- Fish
- Peanuts
- Soybeans
- Milk
- Nuts (almonds, hazelnuts, walnuts, etc.)
- Celery
- Mustard
- Sesame
- Sulphites (preservatives in wine, dried fruit)
- Lupin
- Molluscs (mussels, oysters, squid)
How to Provide Allergen Information
On your menu: Mark each item with allergens present or provide a clear statement directing customers to detailed allergen info.
In Ordery: Use the allergen fields when adding or editing menu items.
How it affects your storefront: Allergen information appears on item detail pages. Customers can review before ordering.
Cross-Contamination
What it is: Allergens transferring from one food to another (e.g., using the same knife for peanut butter and jam).
Your responsibility:
- Train staff on cross-contamination risks
- Use separate utensils and prep areas for allergen-free items
- Clearly label storage containers
⚠️ Warning: Incorrect allergen information can cause serious harm or death. Take allergen safety seriously.
💡 Tip: If unsure about allergen presence (e.g., supplier changes ingredients), always err on the side of caution and mark "may contain."
VAT and Tax Compliance
VAT Registration
When to register: If your annual turnover exceeds £85,000 (2024 threshold), you must register for VAT.
Voluntary registration: You can register voluntarily if below the threshold.
How to register: Through HMRC's online portal.
Record Keeping
Legal requirement: Keep accurate records of all sales, purchases, and VAT for at least six years.
What to record:
- All orders and sales (Ordery provides this)
- Supplier invoices and receipts
- VAT paid and charged
- Refunds and cancellations
💡 Tip: Download order histories and Stripe reports regularly for backup.
VAT Returns
If VAT-registered: File VAT returns quarterly (or monthly if high volume).
How Ordery helps: Ordery tracks VAT-exempt and taxable items, making it easier to calculate VAT owed.
What you need:
- Total sales (output VAT)
- Total purchases (input VAT)
- VAT owed or reclaimable
Consult an accountant: VAT returns can be complex. Professional advice is recommended.
Data Protection and Privacy
GDPR Compliance
What it is: The General Data Protection Regulation governs how you handle customer data.
Customer data you collect:
- Name, email, phone, address
- Order history
- Payment information (handled securely by Stripe)
Your responsibilities:
- Collect only necessary data
- Store it securely
- Use it only for order fulfilment and communication
- Delete or anonymise data when no longer needed
- Respond to customer requests (data access, deletion)
How Ordery helps: Ordery stores customer data securely. You control access through your admin panel.
Privacy Policy
Legal requirement: Display a privacy policy explaining how you collect, use, and protect customer data.
What to include:
- What data you collect
- Why you collect it
- How you store and protect it
- Customer rights (access, deletion)
- Contact details for privacy queries
Where to display it:
- On your storefront footer
- Linked from checkout page
Consult a solicitor or use an online privacy policy generator to create a GDPR-compliant privacy policy for your business.
💡 Tip: Consult a solicitor or use an online generator to create a GDPR-compliant privacy policy.
Payment Security
PCI Compliance
What it is: Payment Card Industry standards for handling card data securely.
Your responsibility: Ordery uses Stripe, which is fully PCI-compliant. You do not handle card data directly.
What this means:
- Card details are entered on Stripe-hosted forms
- Card data is never stored on your servers or in Ordery
- You are not responsible for PCI compliance
What you must do:
- Protect your Ordery and Stripe login credentials
- Use strong passwords
- Don't share access with untrusted individuals
Terms and Conditions
Why You Need Terms
Legal protection: Terms and conditions set out the rules for using your online ordering service.
What to include:
- Order acceptance policy
- Delivery terms and limitations
- Refund and cancellation policy
- Liability limitations
- Dispute resolution
Where to display:
- On your storefront footer
- Linked from checkout page
Consult a solicitor to draft terms and conditions that protect your business. You may also find templates online, but legal review is recommended.
💡 Tip: Consult a solicitor to draft terms that protect your business while being fair to customers.
Licensing and Permits
Alcohol Licensing
If you sell alcohol: You need a premises licence from your local council.
How to apply: Contact your local licensing authority.
What's involved:
- Application fee
- Public notice period
- Designated premises supervisor (DPS) with a personal licence
Online sales: Selling alcohol online may have additional requirements. Check with your licensing authority.
Music Licensing
If you play music at your premises: You may need a licence from PRS for Music or PPL.
Does not apply to: Online ordering itself (only physical premises).
Health and Safety
Legal requirement: Maintain a safe working environment for staff.
Key areas:
- Risk assessments
- Fire safety
- First aid provisions
- Staff training
Employment Law
Staff Contracts and Rights
If you employ staff:
- Provide written contracts
- Pay at least the National Minimum Wage
- Comply with working time regulations
- Provide holiday and sick pay entitlements
Payroll and Tax
Legal requirement: Register as an employer with HMRC and operate PAYE (Pay As You Earn).
Your responsibilities:
- Deduct income tax and National Insurance from wages
- Submit payroll information to HMRC
- Provide payslips to employees
💡 Tip: Use payroll software or hire an accountant to manage payroll.
Insurance
Public Liability Insurance
What it covers: Injury or damage caused to customers or the public.
Recommended for: All food businesses, especially those with dine-in or delivery services.
Product Liability Insurance
What it covers: Harm caused by the food you sell (e.g., food poisoning, allergic reactions).
Highly recommended: Essential for protecting your business from claims.
Employer's Liability Insurance
Legal requirement if you employ staff: Covers claims from employees for injury or illness caused by their work.
Minimum cover: £5 million (often £10 million).
Best Practices for Compliance
Stay Informed
Keep up to date with:
- Changes to food safety regulations
- VAT and tax rules
- Data protection requirements
Resources:
- Food Standards Agency (FSA)
- HMRC
- Information Commissioner's Office (ICO)
- Your local council
Maintain Records
What to keep:
- Staff training certificates
- Supplier invoices and allergen information
- Cleaning and temperature logs
- Order histories and VAT records
How long: At least six years for financial records; indefinitely for critical safety records.
Review Regularly
Quarterly reviews:
- Check allergen information is accurate
- Update VAT records
- Review staff training needs
- Ensure policies and procedures are current
Seek Professional Advice
When in doubt, consult:
- Accountants for VAT and tax
- Solicitors for legal compliance
- Environmental health officers for food safety
- Insurance brokers for appropriate cover
Common Questions
Q: Do I need to display my food hygiene rating? In England, it's not mandatory (but recommended). In Wales and Northern Ireland, it's mandatory.
Q: What if I run my food business from home? You still need to register with your local authority, follow food hygiene rules, and meet the same legal requirements as commercial premises.
Q: Can I sell alcohol online without a licence? No, you need a premises licence that covers online sales. Check with your licensing authority.
Q: What happens if I don't comply with regulations? Penalties range from warnings and fines to closure orders and prosecution, depending on the severity.
Q: Do I need insurance if I'm a sole trader? Yes, public and product liability insurance are strongly recommended. Employer's liability is only required if you have staff.
Further Resources
- Food Standards Agency: food.gov.uk
- HMRC (Tax and VAT): gov.uk/government/organisations/hm-revenue-customs
- Information Commissioner's Office (Data Protection): ico.org.uk
- Local Council: Contact your environmental health and licensing departments