Advice Needed!!! - Cake business from home

Craig_Charles

OK

Some advice needed please....

I know some one that has a small cake business setup and they are running it from home

They currently have public liability insurance which is good.

They don't have the business registered with the local authority, which is a requirement of the Food standards agency is this correct?

They are worried as have been told that sometimes the local authority can insist on a downstairs toilet, they also have a pet cat which does have to cross through the kitchen but does not use it's litter tray or eat anywhere near this area. Can a local authority refuse permission on something like this?

They only ever have people coming to the house to pick up cakes and sometimes sell them from hired stalls

Their mortgage company state that under their terms they cannot run a business from the property that involves clients visiting the property!!

The home insurance building and contents policy could also be void if they were aware a business was being operated from the property

Therefore what on earth do other people do in these situations???

In order to meet the requirements she may have to move house / build an extension, obtain a commercial mortgage, pay a much higher home insurance premium, get rid of the cat...

Also she will some times deliver the cakes in her own car which is not insured for business purposes!

Am I reading too much into this or if she gets caught out with any of this could there be major implications??

What do other small businesses do when it's just a little sideline from home?

Thanks for looking

steve1980

Sounds like you're just looking for an excuse to get one over your neighbour.

Concentrate on your own life and don't get involved with your neighbours. Start a hobby that doesn't involove you seeing your neighbour.

InsideInsurance

Some will try and fly below radar as your friend is, though if your operating illegally there possibly isnt much point in having insurance.

Others will do what is required and make the changes necessary to stay within the law. Having clients coming on site is going to the biggest stumbling block. If they can find another solution then they are more likely to be able to work with the other parties to come to agreements. Read http://www.mumsnet.com/Talk/freelancers/938574-Baking-from-home-regulations/AllOnOnePage to see others who have done things properly with minimal issues

Craig_Charles

Sounds like you're just looking for an excuse to get one over your neighbour.

Not at all lol couldn't be further from the truth but yeah I can see how it is worded that way

I work in finance so have some knowledge about certain things and I suppose I'm being a bit paranoid. This person is close to me and I wanted to know if things are not done properly could there be any serious implications?

Lets say for example theoretically some one got food poisoning from some of her cakes, or fell on the property when collecting an order and pursued it (unlikely I know) she'd be covered with the personal liability insurance right? But what about not registering with the local authority could that throw the claim out window?

I came here for advice, because she doesn't think it's a big deal and says that all other small cake businesses that she knows don't bother with a lot of this stuff.
She says if she trys to register with local authority she's worried she will get refused due to no downstairs toilet or having a pet, this is just stuff she has read on other forums etc. Was just looking to get her some tips or experiences other people have had

I am not looking to stitch anybody up ha! I am not devious or malicious in that way!

Valli

Just out of interest I make a lot of jam, which, at the moment I give to family.
It has been suggested that I sell the jam BUT I won't even go there because I know my kitchen WILL NOT pass -

I have cats
I do my laundry in there
The back door accesses directly into the kitchen and visitors MUST walk through
The cabinets and work surfaces are nowhere near up to commercial kitchen standards

I was under the impression you need a sink for handwashing (not necessarily a downstairs loo) which is separate from a 'prep' sink (though I may be wrong on that)

So I don't sell jam

anyway read this

What YOU could do is contact the council and ask what the rules are in your area.

Craig_Charles

InsideInsurance wrote: »

Some will try and fly below radar as your friend is, though if your operating illegally there possibly isnt much point in having insurance.

Others will do what is required and make the changes necessary to stay within the law. Having clients coming on site is going to the biggest stumbling block. If they can find another solution then they are more likely to be able to work with the other parties to come to agreements. Read http://www.mumsnet.com/Talk/freelancers/938574-Baking-from-home-regulations/AllOnOnePage to see others who have done things properly with minimal issues

Thanks for that link! Found this on there which will answer a lot of her questions about registering with local authority :beer:

http://www.food.gov.uk/multimedia/pdfs/startingup.pdf

Craig_Charles

Valli wrote: »

Just out of interest I make a lot of jam, which, at the moment I give to family.
It has been suggested that I sell the jam BUT I won't even go there because I know my kitchen WILL NOT pass -

I have cats
I do my laundry in there
The back door accesses directly into the kitchen and visitors MUST walk through
The cabinets and work surfaces are no where near up to commercial kitchen standards

I was under the impression you need a sink for handwashing (not necessarily a downstairs loo)_ which is separate from a 'prep' sink (though I may be wrong on that

So I don't sell jam

That's helpful thanks!

Craig_Charles

She has the food hygiene certificate, public liability, the kitchen is clean and modern. I'll persuade her to ring local council and look into it

There really is a lot to think about!

Thanks for your help it is appreciated

texranger

i think it is the OP who is doing this as they seems to know alot about what this persons mortgage company states and home insurance building and contents policy states.

also "They only ever have people coming to the house to pick up cakes and sometimes sell them from hired stalls" how would they know this unless it was them

why do those wanting genuine help use "I know some one" " i am posting because a friend" "i am posting this on behalf of a mate" rather than just be open about facts

Valli

since the OP goes on to say where he (assuming from username so apols if I am wrong) works, in finance I'm happy to accept he isn't the cakemaker but has SOME understanding of what business expenses are

and, TBH even if the op IS the cakemaker does it matter? I mean - asking questions on an open forum - one has the right to be cagey...

steve1980

Craig_Charles wrote: »

Not at all lol couldn't be further from the truth but yeah I can see how it is worded that way

I work in finance so have some knowledge about certain things and I suppose I'm being a bit paranoid. This person is close to me and I wanted to know if things are not done properly could there be any serious implications?

Lets say for example theoretically some one got food poisoning from some of her cakes, or fell on the property when collecting an order and pursued it (unlikely I know) she'd be covered with the personal liability insurance right? But what about not registering with the local authority could that throw the claim out window?

I came here for advice, because she doesn't think it's a big deal and says that all other small cake businesses that she knows don't bother with a lot of this stuff.
She says if she trys to register with local authority she's worried she will get refused due to no downstairs toilet or having a pet, this is just stuff she has read on other forums etc. Was just looking to get her some tips or experiences other people have had

I am not looking to stitch anybody up ha! I am not devious or malicious in that way!

Ask her to post on here then. Agree with Texranger :eek:

Don't let it worry you, if something does happen then it's not going to concern or involve you is it.