Legislation and regulation

General legislation

Businesses should be aware of the following:

• if the business involves a change in use of the building, then planning permission must be obtained from the Local Planning Authority
• the Inland Revenue, Customs and Excise local VAT office and local National Insurance Contributions Agency must be notified of self employment. This can all be done on one form, CWF1, available from any Tax, VAT or Contributions Agency Office
• section 12B of the Taxes Management Act 1970 requires traders to keep business records and supporting documents for a period of six years. "Supporting documents" includes accounts, books, deeds, contracts, vouchers and receipts
• public liability insurance, employer’s liability insurance (if there are any employees), property insurance and business insurance should be taken out

In addition to trade specific legislation, businesses must comply with the requirements of a range of general legislation. The following are likely to be the most relevant, but the list is not exhaustive:

Business Names Act 1985
Businesses which do not trade under the name of the proprietor(s), must display the name of the proprietor(s) and an address where documents may be served, on all business stationery and at all premises to which the public have access

Companies Act 1985
This Act regulates every stage of the existence of a company, from its formation to its winding up. It also regulates the ways its officers must conduct themselves in their dealings with and on behalf of the company. Leaflets covering all the most important ways in which the Act applies to the company and its officers are available free of charge from Companies House

Consumer Protection Act 1987
Manufacturers, or retailers/suppliers (if the manufacturer cannot be identified) are financially liable for the supply of defective goods. Specific regulations cover the safety of many products, and retailers must only stock products which adhere to these regulations

Copyright, Designs and Patents Act 1988
Protects copyright material, and requires that a licence is bought for the public use of background music

Data Protection Act 1998
Any business that keeps records of clients' details must register as a data user with the Information Commissioner. In addition all businesses using CCTV cameras are required to take specific measures to comply with the law, including registering their system with the Information Commissioner

Disability Discrimination Act 1995
Service providers (ie any business or organisation that provides a service, offers facilities, or supplies goods to the public) must make reasonable adjustments for disabled people - for example, by offering extra help or altering the way they provide their services. From 2004, service providers will have to consider making reasonable adjustments to the physical features of their premises to overcome barriers to access

Occupiers’ Liability Acts 1957 and 1984
Occupiers of premises must take reasonable care to ensure that any visitors are safe. The 1984 Act extends this duty to include unlawful visitors such as trespassers, to whom the duty may be discharged by giving warning of any danger or discouraging trespassing by making it more difficult to enter the premises

Offices, Shops and Railway Premises Act 1963
Under this act all offices and shops must be registered with the Local Authority

Prices Act 1974 and Price Marking Order 1991
The selling price of all retail goods must be clearly displayed

Sale of Goods Act 1979, Supply of Goods and Services Act 1982 and Sale and Supply of Goods Act 1994
Cover contracts of sale and sellers’ and buyers’ rights. Sellers are responsible for ensuring that goods or services are fit for their intended purpose and of satisfactory quality

Sunday Trading Act 1994
Restrictions on Sunday opening hours apply to shops with a floor area of 280 or more square metres

Trade Descriptions Act 1968
It is an offence to supply goods to which a materially false description has been applied. It is also an offence to make a false statement relating to services

It is the responsibility of the individual to be aware of any legislation which applies to his business. Further details of the above may be obtained from several advisory bodies (see Legislation and regulation: Sources of further information).

In addition, health and safety legislation and employment legislation must be complied with.