Common And Costly Compliance Mistakes Businesses Need To Avoid
Business licence Google searches in the UK have skyrocketed by 105% in the past month alone, and searches for “how to obtain a business licence” have surged by 250% over the past year. This rise reflects a growing concern among entrepreneurs about compliance
To help clarify the rules, small business comparison site Bionic has shared guidance on how to secure the right licences and the common compliance pitfalls to avoid.
Pizza Shop Fined £5K For Breaching Their Business Licence
A recent case in York serves as a stark reminder to all UK business owners: licence breaches carry real financial and legal consequences.
A pizza shop owner has been fined more than £5,000 for operating outside the conditions of their business licence. According to the City of York Council, the business continued to sell hot food and alcohol after 11 pm, despite not being licensed to do so.
The owner failed to respond to a court summons and was convicted in their absence. They were fined £2,000, ordered to pay £2,547.28 in court costs, and issued a £800 victim surcharge – bringing the total penalty to £5,347.28, payable within 28 days.
Common Business Licensing Mistakes To Avoid
Even well-intentioned business owners can fall foul of licensing regulations. With this in mind, Bionic have revealed some of the most common errors made by businesses when it comes to licensing.
-
Not having the correct licence
It’s not just about having a business licence, it’s about having the right ones for all your activities. There are many different types of licences depending on what you do, and missing just one could put you in breach of regulations.
For example, even advertising outside your premises using a pavement sign will require an additional licence. You’ll need prior written permission from your local council, and in many areas, this costs around £400 and lasts up to six months.
-
Forgetting to update your licence when your business changes
Business models evolve, but licences don’t automatically keep up. For example, if you’re a takeaway and begin offering a delivery service, or extend your operating hours, your licence must be updated accordingly. Continuing to trade under outdated terms can place you in breach, even unintentionally.
-
Failing to display or keep a copy on site
You’re legally obliged to display your company name at your registered business address and every physical location your business operates from (excluding your home, if you work remotely). For example, if you run three shops and an office (not from home), you need a sign up at each one.
-
Not renewing your licence
Some licences require annual or periodic renewal, and they don’t always come with reminders. Missing your renewal date could leave you unknowingly operating without a valid licence. This not only breaks the law but can also result in fines, suspension, or closure notices.
Laura Court-Jones, member of Bionic’s insurance team, commented:
“Many business owners don’t realise that operating without the correct business licences could put them at risk of fines, or worse.
For example, if you are a food-based business, an FSA licence is required, whilst new businesses won’t always have these, your insurance policy may be subject to you achieving a certain score following an inspection.
It’s clear businesses shouldn’t skip out on getting the specific licences for their business, as playing ignorant if you get caught is unlikely to go down well with the council.”
