Selling and getting paid

When you sell to the public, the law gives your customers strong rights. This is not there to trip you up — most of it is just fair trading. This chapter also covers the other side: making sure the money actually reaches you.

Your customers’ rights

These rules apply to any “trader” selling to consumers — sole trader, partnership or company, big or small. (Selling to other businesses is covered by different law.) In Scotland the rules are the same as the rest of the UK, but they are enforced by your local council’s Trading Standards team.

The core promise: the Consumer Rights Act 2015

Under the Consumer Rights Act, anything you sell must be:

• Of satisfactory quality — as good as a reasonable person would expect.
• Fit for purpose — including any special purpose the customer told you about.
• As described — it matches what you said it was.

The important part: you, the seller, are responsible — not the maker. The customer’s deal is with you.

The refund ladder for faulty goods

If something is faulty, there is a clear order of what the customer can ask for.

• First 30 days: a full refund if they want it.
• After 30 days: you can repair or replace it, free and without much fuss.
• If that fails: money off, or a final refund.

Two more rules to know:

• If a fault shows up in the first 6 months, the law assumes it was there when sold — unless you can prove otherwise. After 6 months, it is for the customer to show the fault.
• Refunds must be paid within 14 days of you agreeing the customer is owed one.

Services must be done with reasonable care and skill, in a reasonable time, at a reasonable price. Digital content must meet the same quality rules.

Selling online, by phone, or at someone’s home

If you sell at a distance (online, phone, mail order) or away from your premises, extra rules apply — the Consumer Contracts Regulations 2013.

A few details:

• You must give clear information before the sale: who you are, the full price, delivery costs, and how to cancel.
• Some things are exempt from cooling-off — fresh food, made-to-order items, and sealed hygiene products once opened.
• For downloads, do not start supplying during the cooling-off period unless the customer agrees and accepts they lose the right to cancel.
• Unless you agree otherwise, you must deliver within 30 days, and the goods are your risk until they reach the customer.

Fair selling: the DMCC Act 2024

The main things it bans:

• Fake reviews. You must not write, buy or host fake reviews. If you show reviews, you need a policy to spot and remove fake ones.
• Hidden fees (“drip pricing”). The price you show must include all unavoidable charges from the start. Only truly optional extras can be added later.
• Fake discounts. A “was £100, now £50” claim must be true — the item really has to have been sold at the higher price.
• Subscription traps. If you sell subscriptions, you must give clear information, send renewal reminders, and make it as easy to cancel as it was to join. (Some parts of this are still being brought in — check the current position.)

A few more selling rules

• Fair contract terms. Your terms and conditions must be fair and clear. Hidden or harsh terms cannot be enforced.
• Honest prices and adverts. Displayed prices must be correct and include VAT for consumer sales. Adverts must not mislead (the ASA enforces the advertising codes).
• Product safety. If you make or sell products, you are strictly responsible for harm caused by a faulty one.

A brilliant free resource for all of this is Business Companion, the official Trading Standards guidance for businesses.

Getting paid

Selling is only half the job. You also need the money to arrive.

• Say if it is a quote or an estimate. A quote is a fixed price. An estimate is a best guess. Put which one it is in writing — this is the most common small-business argument.
• Agree terms in writing before you start — the price, any deposit, when payment is due, and what happens if it is late.
• Invoice straight away, and give a clear due date (say “due within 14 days”, not “on receipt”).
• Chase early and politely. Send a reminder before the due date.

Hidden rules that surprise people

These do not apply to everyone, but check whether they apply to you.

Show your business details

Packaging rules (EPR)

Bigger businesses have to pay for the packaging waste they create, under EPR. This only starts to bite if your sales top £1 million and you handle over 25 tonnes of packaging a year. Most new businesses are well under this — but the limits are checked every year, so put “check EPR” in your year-end review. (Also note: Scotland charges at least 10p for single-use carrier bags.)

Selling through online platforms

Bringing goods in or sending them abroad

• You need a free EORI number from HMRC to move goods into or out of the UK.
• Import VAT and duty can apply, and you will usually need customs declarations (often handled by your courier).
• Selling goods to shoppers in the EU can create EU VAT duties. Treat this as “get advice first” territory.

Money laundering rules

Some trades — like bookkeeping, accountancy, estate and letting agency, or dealing in high-value goods for cash — must register for anti-money-laundering supervision before they start trading. Trading without it is a criminal offence. If this might be you, check the GOV.UK anti-money-laundering registration guide.