Pub Licences and Permits Needed in the UK

The social outing criteria of the UK are heavily influenced by its pub and bar culture. As per lumina-intelligence.com, this market is currently valued at £24.1 billion. With premium-focused formats, experimentation for the newer audience, and evolving behaviours, there’s a lot to look forward to in the UK pub and bar industry.

Once you’ve done your market research, have a bar name, perfected your branding, and figured out a POS system, it’s the right time to get into the technicalities. Since you will be serving alcohol or alcoholic beverages, you need to get bar licences and permits, too. This guide explores all the essential and additional bar permits you’d need.

What Permits and Licenses Do You Need to Open a Bar?

One of the most important things you need to keep in mind while creating a restaurant business plan is how much time, money, and effort you’re spending on getting licences. Here’s a quick rundown of how we can make opening a bar more strategic. Let’s understand exactly what pub bar licences and permits you’d need.

1. Business licence

Every business, whether it’s a pub or a restaurant, needs a business licence, also known as a premises licence, to operate in the UK. A premises licence may also include conditions related to fire safety, ensuring that your bar has appropriate fire safety measures in place, including fire alarm systems, fire extinguishers, emergency lighting, and fire exit signage.

How to get a premises licence

Reach out to your local licensing authority or council to confirm specific requirements, the process, and the application system.

How much does a premise licence cost?

According to restauranttimes.com, you’d spend approximately £100-£1,905 for premise licences and £100 extra for serving alcohol. Additionally, you’ll also have to pay an annual fee to maintain the licence. If you decide to hire a legal professional to help navigate the application process, this should be factored into your budgeting, too. The overall cost of obtaining a premises licence will vary widely depending on the type of premises, the location, and the specific activities you plan to carry out.

2. Employer PAYE reference

All businesses require an Employer PAYE Reference to legally operate in the UK. An Employer PAYE Reference is essentially a tax number that's issued by HM Revenue and Customs (HMRC) to help identify your business. The good news is that once issued, an Employer PAYE Reference does not expire. However, if you experience significant changes in your business such as a change in ownership or closure and reopening, it's advisable to contact HMRC for guidance on how to proceed and whether a new reference is required.

How to get an Employer PAYE reference

You can apply for an Employer PAYE reference directly on the HMRC website.

How much does an Employer PAYE reference?

It’s free of cost to get an Employer PAYE reference.

3. Change of Use permission

Once you’ve finalised your location, you’ll have to get the Change of Use permission. Whether you’ve leased your bar’s site or bought it, you’ll have to get it inspected by your local government to verify the safety of the consumers. After a successful inspection, you’ll be able to host your customers.

How to get a Change of Use permission

Every local government body has a different way of approaching it depending on your establishment’s location. It is recommended that you visit the local government’s website for all the steps.

How much does it cost to get a Change of Use permission?

A standard planning application could cost you anywhere between £200 and £500. This will vary depending on various factors, including the scale and complexity of your project.

4. Alcohol licence

Your pub or bar is incomplete without you serving alcohol in some capacity. In order to legally sell these alcoholic beverages, you’ll need proper licences and permits. The type of licences, time period they’re valid for, and application process depend on the country your bar is going to be located in.

As a business that wants to sell alcohol on their premises, you will need to apply for a premises licence. In addition to that, employees responsible for the sale of alcohol at your bar will need to hold a personal licence.

How to get an alcohol licence

Serving alcohol is risky given the nature of its usage. So it’s imperative that you take all the measures before getting an alcohol licence. In order to understand the details and requirements, check out your local government’s website and how they process these licences. You should also get details about their fees and renewals on the website.

Note that every premises that sells alcohol must have a designated premises supervisor (DPS) who holds a valid personal licence. If you intend to manage the premises yourself, you can apply for a personal licence and serve as the DPS. If not, you will need to appoint someone with a personal licence as the DPS.

How much does an alcohol licence cost?

The cost of applying for a new premises licence can range from around £100 to several thousand pounds, depending on your council's fee structure. There are also annual renewal fees to be prepared for, although these are usually lower than the initial application fee. The standard application fee for a new personal licence in England and Wales is £37. This fee remains consistent as it’s set by the government. Just remember it’s non-refundable, so make sure your application is spot on. 

To obtain a personal licence, you must complete a mandatory training course called the Level 2 Award for Personal Licence Holders (APLH). The training course fee can vary depending on the training provider but is usually in the range of £100 to £150.

5. Value Added Tax (VAT) registration

If your bar or pub’s annual taxable turnover exceeds the current VAT threshold, you will need to register for VAT with HMRC. The VAT threshold is determined by HMRC and is usually reviewed annually. Once registered for VAT, you will receive a VAT identification number (VAT ID) from HMRC. This will be used for the transactions with your suppliers and customers. When you purchase goods and services from your suppliers, they will charge you VAT at the applicable rate. This VAT is known as input tax as it is a cost to your business. As a VAT-registered business, you can recover the VAT (input tax) you pay on your purchases by offsetting it against the VAT you charge on your sales (output tax).

How to register for VAT

All your VAT registration and remittance requirements depend on your business’s annual sales revenue. You can find all the details on the HMRC website, which is where you can file an application. Before you can apply, ensure that you have all the information about your business, current turnover, expected turnover, and banking details. 

Common VAT schemes include the Standard VAT Scheme, the Flat Rate Scheme, and the Annual Accounting Scheme. Once registered, you must start charging VAT on your taxable supplies (food and drinks) to your customers. You are required to report and pay the VAT collected to HMRC regularly, usually on a quarterly basis.

How much does it cost to register for VAT

Good news: registering for VAT is generally free of charge. The fees don't apply to registration with HMRC. Instead, once registered for VAT, you will be required to charge VAT on applicable goods and services sold to customers. The VAT rates in the UK can vary depending on the type of goods or services provided. Failure to do so could result in the HMRC revoking your registration.

Additionally, after registering for VAT, you will be required to submit regular VAT returns to HMRC. Depending on the results of these returns, you may be required to make VAT payments or you may be eligible for VAT refunds.

6. Signage permit

Signage is how your customers know about your establishment’s existence offline. This is a key part of your branding effort so you get to welcome your customers and serve them, too. But before you get a huge sign to showcase your brand, you’ll need to get a sign permit approved by your local city government. Every city has its own requirements when it comes to regulating the sign’s size, location, lighting, and visibility. If you rent your building, there may be additional rules about signage.

How to get a signage permit

Once you have the approval of your landlord, you can easily apply for a sign permit by checking your local city government’s website for sign permits and regulations. You should be able to find the right instructions, fees, and documentation needed.

How much does a signage permit cost?

While the signage permit fees depend on your sign’s size, location, etc., you’ll be expected to pay at least £40.

7. Music licence

Music is what sets the ambiance at pubs or any restaurant-like establishments. It sets the tone and atmosphere. Whether you’ve hired a DJ or have music play through dining, you’ll have to get the right permits and licences ready way in advance. This helps you stay away from copyright troubles and any financial mishaps, too.

How to get a music licence

Music licences are normally obtained from performing rights organisations, such as the Performing Right Society (PRS). Alternatively, you can obtain licensed music from a business streaming service.

How much does it cost to get a music licence?

The cost of a music licence often depends on the type of recording you play, how many nights you play it, and which organisation or platform you choose.

8. Live entertainment licence

Live entertainment is a great addition for a pub. As a bar, you can have karaoke time, game nights, or give space to indie bands to perform. If you’re thinking of starting a sports bar, you can have televised games and play trivia game nights. You’ll need a commercial TV package, as these events are copyright protected. There are some copyrighted material exceptions depending on the size of your pub.

How to get a live entertainment licence

Your local council or licensing committee within the council is responsible for granting live entertainment licences. If you’re planning on holding a live music event, you’ll still need to obtain an entertainment licence alongside a music licence. 

How much does a live entertainment licence cost?

Your live entertainment licence fee depends on your bar’s maximum capacity. It can also be influenced by whether the events will be indoors or outdoors. If your local municipality requires you to have a public hearing beforehand, this may cost extra.

9. Food service licence

Your food and beverage business is incomplete without its appropriate food service licence. Whether you have a minibar or a high-end pub, you’ll be serving your customers food and alcohol that requires a safety seal. Every province and jurisdiction has specific rules and requirements for the food service licence. In order for your employees to serve your patrons, they need the right qualification and certification. This permit showcases that they have all the necessary training to handle and serve the food safely. 

The need for licensing could also depend on whether you’re serving a full menu or reselling pre-made food. Check in with your local food regulatory body for all the details and fees.

How to get a food service licence

A thorough inspection of your pub will be done before you’re allotted a food service licence by your local health authority or regulatory agency. While registering for the application, ensure that you’re providing them details like the name and address of your pub/bar, in addition to the owner’s personal details. If a change of ownership or physical location occurs, you may need to renew your licence. 

How much does a food service licence cost?

The cost of your food service licence depends on the location of your establishment. But in case you’re unsure of the actual fee, you can enquire on your food regulatory agency’s website.

10. Food handler certification

All your employees, whether they serve food or alcohol, are expected to undergo training and certification. Food handler certification ensures that employees have received proper training in food safety and handling practices to prevent food-borne illnesses. There are a plethora of food and safety programmes available that are certified by the provinces your bar is in. Once your employees get the food handler certificate, they can officially handle your patrons’ requests. In many cases, at least one member of the staff who is involved in food handling or food preparation is required to hold a valid food hygiene certificate (often known as a Level 2 Food Safety Certificate). 

How to get a food handler certification

In order to get your food handler certification, search for your city + food handler certification programs, and you’ll find the right ones, including the application process and details.

How much does a food handler certification cost?

The cost of a basic Level 2 Food Safety Certificate course could fall between £20 and £100, depending on the training provider, the format of the training, and the location of your bar.

11. Food hygiene rating

As you’ll be serving beverages and food to customers, you’ll need a health inspection permit prior to that. This is to ensure that your business is compliant with all food, health, and safety codes. Generally, a health inspection permit is needed for new constructions, but this depends on your province or territory.

How to get a food hygiene rating

In order to receive your food hygiene rating, you’ll need to put in a request for health inspection at your bar from your local health authority. An inspector will visit your bar to assess its compliance with food safety regulations, cleanliness, and overall safety. You’ll also have to provide information about your bar's ownership, location, menu, food safety plan, and other relevant details.

How much does a food hygiene rating cost?

Fees can vary by location and the size and type of establishment. Application fees can range from approximately £100 to £500 or more, depending on the jurisdiction.

12. Pool table licence

Having a sports pub with a pool table could be great for engaging your customers. Often times, pool tables need a separate licence. Depending on this requirement, you can figure out how many pool tables you can actually have at your establishment. Even a few tables can keep the audience busy and ordering, so it could actually be a great idea for your sports pub.

How to get a pool table licence

You should look up your municipality + pool table licence to see if you’re required to get one. This will help you in planning how many tables you can get and where you’d set them up.

How much does a pool table licence cost?

While planning your bar business plan, you’ll have to include the cost of getting the pool table and its licence. Depending on where your bar is located, your licence fees may vary. 

Licences and Permits across the UK

According to this guide, you can see how elaborate the requirements and types of licences and permits are. Before you start a pub or bar in any region in the UK, ensure that you’re meeting all the prerequisites and have the fees to support it.

Research your local council’s website to discover which licences and permits are required before opening. Also, ensure that any licences and permits you hold are current, as the renewal process is often easier than the initial application.

The UK government's Licence Finder tool can help you identify some of the licences and permits you might need for your specific type of business: https://www.gov.uk/licence-finder

England, Scotland, Wales, and Northern Ireland have specific nuances that you need to take into consideration before starting a pub. Here’s a non-exhaustive list.

Licences and Permits in England

Some local authorities in England have the power to impose Early Morning Restriction Orders (EMROs), which restrict the sale of alcohol in specific areas during certain hours. These orders are intended to address alcohol-related issues and antisocial behaviour. Be sure to check if your bar is operating in an area with EMROs so that you can be aware of the restrictions and ensure compliance.

Additionally, certain areas, particularly city centres, may impose a late-night levy on licensed premises that operate late at night. This is an additional fee aimed at contributing to the costs of policing and managing late-night activity. Bars or pubs operating in areas with a late-night levy should be prepared to pay this fee.

Licences and Permits in Scotland

Scotland has its own set of rules regarding extended hours for alcohol sales. These are different from those in England, Wales, or Northern Ireland. Before you get your licence, check with your licensing board for the permitted hours in your area.

Even in Scotland, licence holders and staff members must undergo training in the responsible sale of alcohol. The Scottish Certificate for Personal Licence Holders (SCPLH) is a common qualification that individuals must obtain.

Licences and Permits in Wales

As per some local authorities in Wales, there are some strict regulations on how many licensed premises can serve alcohol in certain areas. These over-provisioning policies aid in preventing issues related to excessive alcohol availability. So before you apply for a permit, beware of such policies in your areas.

You’re recommended to have bilingual signage in both Welsh and English in your establishment. This can include menus, information boards, and directional signs. Familiarise yourself with the Welsh Language Standards set by the Welsh Language Commissioner, which outline requirements regarding the use of Welsh.

Licences and Permits in Northern Ireland

Licensing in Northern Ireland is regulated by the Department for Communities (DfC) and the local council in the area where your bar is located. Pub and bar owners in Northern Ireland should apply for licences through their local council's licensing department.

In order to ensure the responsible sale of alcohol, licence holders and staff members must undergo rigorous training. The Responsible Retailing of Alcohol (RRA) qualification is typically required for personal licence holders.

The Process After Receiving the Licences

Once you have your licences in place, following through with the other list items from your bar business plan should be smooth sailing. Getting your licences may feel expensive but safeguards your business from any legal issues. It’s important that you account for these fees when working out your pub startup expenses. It’s advised that you don’t wait until the last minute for 

You need to do your fair share of research regarding the jurisdiction of your business, the legislation applicable, and municipalities you need to report to. Opening a pub is an exciting venture. Your job isn’t done once you’ve applied for your licences. You need to be updated about their renewals or updates too.

Simultaneously, you can start building your pub the way you’ve always dreamed of. Focus on the interior, exterior, and kitchen exactly how they are approved. And soon enough you will have customers coming in once you launch properly.

Related Resources

• How to Write a Bar Business Plan

• How to Open a Bar: Starting a Bar Business Steps

• How to Design a Bar in the UK

• Navigating the Employment (Allocation of Tips) Act