How to Set Up Your Online Jewellery Business in the UK

Step 3: What are the Legal and Compliance Requirements for Starting an Online Jewellery Business

How to Follow Online Selling & Consumer Rights Laws

When selling jewellery online, you need to comply with a range of rules under the Consumer Rights Act and online and distance-selling regulations. These include requirements such as:

• Ensuring your products are well-made, safe to use, match their description, and do what they’re meant to do
• Offering the right to cancel an order up to 14 days after delivery

Your product descriptions must be accurate, and your returns policy clearly stated. For more information and a full list of legal requirements, see the links above.

What Hazardous Materials Should You Watch Out For?

Jewellery must be free from certain substances, including:

• Nickel
• Lead and its compounds
• Cadmium and its compounds

Jewellery must meet strict UK safety standards, many of which are outlined in the National Association of Jewellers' (NAJ) Product Safety Code of Practice. That’s why it’s so important to source your materials from trusted suppliers. Cheap components bought online (especially from outside the UK) may not comply with safety laws. For more detailed guidance, the NAJ Code outlines key responsibilities for jewellers and practical steps for maintaining compliance.

When Do You Need Hallmarking?

A hallmark guarantees that something described as a precious metal is actually precious.

If your jewellery contains:

• Over 7.78g of sterling silver
• Over 1g of gold or palladium
• Over 0.5g of platinum

… it must be hallmarked if you want to describe or sell it as a precious metal like silver or gold. The hallmarks are done by four assay offices (in London, Birmingham, Sheffield and Edinburgh) and you need to pay a fee for their services, which varies depending on what type of hallmarking you want.

In addition to legal requirements, there are several voluntary but widely recommended guidelines, such as the NAJ Codes of Practice, covering traceability, ethical sourcing, and sustainability that you may want to follow in your business.

How to Register Your Business with HMRC

Before you start selling, it’s important to register your business properly.

If you earn over £1,000 in a tax year and you're not already set up as a limited company, you must register as a sole trader.

Whether you choose to operate as a sole trader or set up a limited company, you'll need to:

• File a tax return each year
• Pay Income Tax and National Insurance (depending on profits)
• Keep records of expenses, invoices, and earnings

The benefit? You can claim back many of your business-related costs, like buying components or tools, as allowable expenses.

When Do You Have to Register for VAT in the UK?

If your VAT taxable turnover exceeds £90,000 in a 12-month period, you must register for VAT.

If you're below the threshold, registering voluntarily might still help, for example, if you work with VAT-registered suppliers or want to look more established.

Register your company for VAT with our VAT registration services and save yourself time.

What Insurance Do You Need to Protect Your Online Jewellery Business?

Even when you follow the rules, things can go wrong. Consider:

• Product liability insurance – covers harm caused by wearing your products
• Public liability insurance – essential if you sell at markets or events
• Stock and tools insurance – protects your materials and workspace
• Business interruption cover – for when an issue stops you from working

Step 4: Should You Work from Home or Rent a Workshop?

Starting from home is often cheaper and easier. All you need is a safe, well-organised space for tools and materials. You can always move into a workshop later if demand grows.

Step 5: How to Build a Jewellery Collection That Reflects Your Brand

Don’t list one or two items and hope for sales. Instead:

• Launch with a full collection – Aim for enough pieces to give your shop a strong first impression. A well-rounded launch helps potential customers explore your style and find something they love.
• Focus on a consistent, recognisable style – Whether it’s minimalist silver, bold colours, or nature-inspired designs, having a clear design identity helps you stand out in a crowded market.
• Share your story – Buyers connect with the person behind the brand. Let your audience in on why you started, what inspires your work, and how your pieces are made.
• Invest in great product photography – Clear, professional photos are non-negotiable. Show your jewellery from multiple angles, in natural lighting, and ideally on a model to help buyers visualise how it looks when worn.

Photos sell jewellery. Poor-quality images can stop a sale, even if the piece is beautiful in person.

Step 6: How to Protect Your Jewellery Designs

It’s frustrating to see your work copied. Protect it by:

• Keeping design records
• Register your designs with the UK Intellectual Property Office (UK IPO) to protect them in the UK for up to 25 years. You can also register with the EU Intellectual Property Office (EUIPO) if you want protection in the EU
• Adding an IP rights statement on your shop (a short message that asserts ownership of your original designs and warns against copying them)
• Getting legal advice if your designs are copied

Step 7: Know Your Worth - How to Price Your Jewellery Fairly

Low prices might attract buyers at first, but could hurt you long term. Instead:

• Track what similar designers charge
• Calculate your costs (materials + time)
• Charge fairly for your craftsmanship

Don't undervalue your work. If it's your business, your time deserves pay too.

Step 8: How to Choose the Right Selling Platform

You have two options:

• Set up your own website – you keep more profit, but need to build your audience
• Use an online marketplace (like Etsy, Instagram, TikTok Shop, or Amazon Handmade) – quicker setup and built-in customer base

Decide based on your following, budget, and comfort with marketing.

Starting your jewellery business from home is exciting and doable. With the right setup, strategy and legal foundations, you can turn your creative vision into a thriving business.

Need help getting started? We offer services for:

• Registering a limited company
• VAT registration

The information in this blog is correct at the time of publication. For the latest updates on government regulations or requirements, visit www.gov.uk or check with your local authority’s official website.