There is a vast raft of legislation that affects retail businesses and it is impossible to cover all aspects here. Corner shops and Tesco are often covered by the same laws, the difference being that Tesco has a whole legal department to ensure that they comply, whereas the small man is on his own. The following sections try to give you the key points but you do need to recognise when to consult a professional solicitor or accountant. The RSA has an agreement with a legal advice company, Pbs Blueprint – see the article in the summer 2008 Rural Retailer magazine elsewhere on this site for details of what they can do for you and details of their special offer for RSA members.
You will need to register for VAT if your turnover is above the threshold (check what figure applies) and of course get a licence from your district Council to sell alcohol. Be aware of the age limits on sales of alcohol, tobacco, fireworks and lottery tickets. Display the required signs; train staff to require proof of age and tell them what proofs are acceptable.

Health and Safety
Any business selling food must register with their local Environmental Health Department. Depending what you are selling, there will be various requirements placed upon you. If, for example, you have refrigeration, then you will need to record its temperature at regular intervals. Your EHO will advise you but it would be a good idea, even if not legally required, to attend a food hygiene course (and when you pass the exam you can get a certificate to hang on the wall).

Beyond that, you are responsible for the health and safety of everybody working for you and also for customers and other people visiting your shop. You also have responsibility for the products you supply. This is a pretty far-ranging list and you do need to take your responsibilities seriously. In general, you need to take all the steps that could be reasonably expected to keep these people safe. The Health and Safety Executive (HSE) and you local authority enforce the law but can also be useful sources of information and advice. Health and Safety inspectors can visit your premises to help you identify and evaluate risks.

You must:

• Have a written H&S policy (if you have 5 or more employees) – Pbs Blueprint and other companies can supply you with a model policy for you to adapt to your individual circumstances.

• Conduct a thorough risk assessment of your business. This means seeing what the likelihood is of something causing harm. Record it in writing. Do write it in language that you and your staff understand. It is likely to cover a wide range of things, as potentially hazardous chemicals (covered by COSHH regulations), trailing electrical leads, use of stepladders, fire exits and use of equipment. Regularly repeat the risk assessment exercise and record the results in writing.

• Have a system for recording and reporting accidents.

• Consult employees on H&S matters.

• Ensure that employees understand their H&S responsibilities and put into effect your rules.
• Certain types of business (including restaurants) need to register with their local authority’s environmental health department for H&S purposes.

• Employers’ liability insurance is a legal requirement if you employ anyone.

• Consider public liability insurance (covering claims by people such as customers) and/or product liability insurance (covers harm caused by any products you supply) – almost a necessity in this litigation-obsessed age.

• You must enforce the ban on smoking in workplaces and have the compulsory signage in place.

• Ensure you understand the regulations covering the handling of food, such as, for example, the requirement to record temperature readings on refrigeration.

• Ensure you meet basic standards of space, lighting and toilet facilities.

Although initially daunting, much of H&S is, in fact, applied common sense.

Employment/Recruitment
When you are taking on your first employee, you need to register with HM Revenue and Customs.

Make sure that when you are interviewing staff you treat everyone in the same way. Make notes on how you reached your decisions. We would advise making a list of desirable attributes and how each candidate scored against each one. This seems very bureaucratic but could be vital evidence if there is a complaint or a prosecution under any of the discrimination acts. A conviction under the Race Relations Act, for example, could lay you open to an unlimited fine. If you do not inspect and copy documents showing the new employee’s entitlement to work in the UK, you could be prosecuted for employing an illegal worker. Other information you might want to access could include references and health checks, depending on the nature of the job. There are specific rules covering the employment of young people still at school and be particularly careful employing staff who will have contact with children.

You enter into a contract the instant an applicant unconditionally accepts your job offer, with terms probably a mixture of oral, written and implied. It is therefore very sensible to provide a written statement as soon as possible, thus avoiding any uncertainty. This might include pay, hours of work, holiday entitlement, brief description of the work, address of place of work, sick pay conditions, notice period, collective agreements if any, pension details, dismissal, disciplinary and grievance procedures.

Be very cautious when it comes to disciplinary proceedings – make sure you understand exactly what you need to do at each step, or else you may end up before a tribunal with an expensive problem.

Staff conditions
There are laws governing the National Minimum Wage that you have to pay staff and also provision for holiday entitlement. The minimum legal wage is updated annually, so check the current rates. You need a payroll system, to deduct tax under the PAYE system and also National Insurance contributions. This could be a spreadsheet on your computer but many small businesses contract out the administration of this to their bookkeeper or specialist firms. It costs, but it might be worth it; the rules can be very complex.

Community-run shops can accept volunteer labour but if you pay them anything at all, then you are almost certainly going to have to pay them at the national minimum wage and treat them as an employee. However, occasional treats such as a free Christmas party are OK.

The Building
Your premises must have appropriate planning consent for use as a shop. Any structural changes, extensions etc. may require planning permission or comply with Building Regulations. More stringent rules apply to shops in conservation areas or if they area listed building. Even external lighting or signs may require planning permission. You have to take all reasonable steps to provide disabled access under the Disabled Discrimination Act – this act does not lay down hard and fast rules – what is reasonable for a large supermarket and a small convenience store may be totally different.

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