Agriculture & Farming

Set up and run a compliant farm shop

How to register, comply with food safety, and handle VAT when selling produce directly from your farm. Covers food business registration, HACCP requirements, and VAT treatment of different products.

UK-wide
Guide summary

Register your farm shop with the local authority at least 28 days before opening. Follow food safety rules, including allergen information and HACCP. Check VAT rates for different products and keep separate records.

  • Register with local authority 28 days before opening
  • Use Safer Food Better Business for food safety
  • Display allergen information for 14 major allergens
  • Keep chilled food below 8°C and frozen at -18°C
  • Train staff in food hygiene and allergen awareness
  • Track VAT separately for zero-rated and standard-rated items
  • Check if you need planning permission for your shop
  • Prepare for unannounced inspections by Environmental Health
  • Zero-rated VAT for raw food, 20% for hot food and snacks
  • Keep records of food suppliers and sales
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Selling produce directly from your farm - whether your own produce or sourced products - requires food business registration and compliance with food safety regulations. This applies whether you're selling from a permanent shop, a stall, or through a vending machine.

Getting food safety wrong can result in prosecution, unlimited fines, and closure of your business. However, the requirements are proportionate - a small farm shop has different obligations to a supermarket.

Food business registration

Food safety management (HACCP)

The requirement for a HACCP-based food safety system sounds daunting, but the Food Standards Agency provides a free pack called 'Safer Food Better Business' specifically designed for small food businesses. It provides templates for recording cleaning, temperature checks, supplier details, and food safety procedures.

Download it from the FSA website, adapt the templates to your farm shop operation, and train your staff to use it. Environmental Health Officers expect to see completed records when they inspect, not just blank templates.

Key food safety requirements

  • Temperature control: Keep chilled foods below 8°C, frozen foods at -18°C or below
  • Hygiene: Handwashing facilities, clean surfaces, pest control
  • Traceability: Records of where food came from and where it went
  • Allergen information: For prepacked foods, list all ingredients with the 14 allergens emphasised. Foods you pack on site for direct sale (PPDS) need a full ingredient list with the 14 allergens emphasised under Natasha's Law (since 1 October 2021). For loose foods, you must provide allergen information - for example on labels or signage, or verbally on request
  • Training: Staff must be trained in food hygiene appropriate to their role

VAT for farm shops

Record-keeping for VAT

If you sell a mixture of zero-rated and standard-rated items, your till system or sales records must separately track each VAT category. This allows accurate VAT return completion. Many farm shops use electronic tills programmed with VAT rates for each product to automate this.

If selling both your own farm produce and bought-in products, keep separate records. This helps if you later want to use the agricultural flat rate VAT scheme for your farming enterprise (which has specific rules about non-agricultural sales).

Planning permission

Whether you need planning permission depends on the scale and nature of your farm shop:

  • Small-scale, own produce only: May be permitted under agricultural use rights, but check with your local planning authority
  • Significant retail operation: Likely needs change of use planning permission (Use Class E)
  • Building alterations: May need planning permission regardless of use

Many farm shops operate without explicit planning permission until complaints are made. This is risky - retrospective applications are harder to win. Seek pre-application advice from your local planning authority before investing significantly.