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Opening a bar or pub in the UK: licences, music, staff and pricing

Editorial team tischlein · Updated on October 16, 2026

The short answer

A bar or pub needs a premises licence from your local council for selling alcohol and for music, and a designated premises supervisor (DPS) with a personal licence. The licence belongs to the premises, so the lease and the licence have to fit together. Add food business registration if you serve food, a music licence, a fire risk assessment and, for staff, registration as an employer. Plan about two months for the licence.

Concept and premises

A cocktail bar, a neighbourhood pub and a late-night bar differ in hours, noise, food and the licence conditions that follow. Decide the concept first, then look for premises. Ask the council’s planning team about the use of the premises before you sign, and ask the council’s licensing team early how it handles venues like yours.

A bar or pub earns most of its money in a few hours, often at night. That makes hours, staffing and licence conditions the main risks of the plan, not the size of the room.

Licensing: premises licence, DPS and personal licence

Under the Licensing Act 2003 (England and Wales) you need a premises licence for selling alcohol, regulated entertainment such as live or recorded music, and late-night refreshment, which is hot food or drink between 11pm and 5am. The council’s licensing team issues it. Scotland has its own Act.

If you sell alcohol the licence names a designated premises supervisor (DPS) who must hold a personal licence, which costs about £37 according to council pages and no longer needs renewing. The application fee runs from £100 to £1,905 depending on the rateable value, with an annual charge afterwards, and a public notice stays at the premises for 28 days. Councils advise applying about two months ahead. Our guide to the premises licence has the steps.

Music, outdoor seating and food

Live or recorded music in a pub or bar needs a music licence, TheMusicLicence from PPL PRS; royalty-free music needs none. Beer garden or pavement tables in England need a pavement licence for the public pavement, with the fee capped at £500 for a new application and £350 for a renewal; private forecourts are a planning question.

If you serve food, even snacks, register as a food business with your council at least 28 days before you start, set up a food safety system and keep accurate allergen information for what you serve. A food hygiene rating from 0 to 5 follows the first unannounced inspection.

Fire safety and insurance

The responsible person, usually you as the operator, must carry out and regularly review a fire risk assessment. The fire and rescue authority inspects. If you employ people you need employers’ liability insurance and registration as an employer with HMRC before the first payday.

Staff, night work and tips

The Working Time Regulations 1998 limit the average week to 48 hours over 17 weeks unless a worker opts out in writing, and give 11 hours of rest between shifts and 24 hours of rest per week or 48 per fortnight. Night workers have their own limit of an average of 8 hours in 24. Young workers aged 16 and 17 are limited to 8 hours a day and 40 hours a week, and should not work between 22:00 and 06:00; there are exceptions in hospitality which we have not verified. Zero-hours contracts are common in hospitality, and the government plans changes to them from 2027 whose details are not final, so watch that before you build your rota.

Tips, gratuities and service charges must be passed on to workers under the Employment (Allocation of Tips) Act 2023, without deduction apart from tax and National Insurance, with a written policy and records. From 1 April 2026 the National Living Wage is £12.71 an hour from age 21.

Pricing and VAT in a bar

Food and drink consumed in a bar or restaurant are standard-rated at 20 percent VAT, and alcohol is standard-rated under the general rules. Prices on your menu or board must include VAT. A service charge is standard-rated, and a voluntary tip that a guest adds freely is outside VAT. You register for VAT once your taxable turnover goes above £90,000 in a rolling twelve months. Calculate every drink on its net price; the costing tool does it for you.

Status and sources

Status 16 October 2026, not legal advice. Licensing, fees and employment rules change and differ between England, Wales, Scotland and Northern Ireland; confirm with your local council before you act. Sources:

  • GOV.UK: Premises licence (https://www.gov.uk/find-licences/premises-licence)
  • GOV.UK: Licence to play live or recorded music (https://www.gov.uk/licence-to-play-live-or-recorded-music)
  • GOV.UK: Register a food business (https://www.gov.uk/food-business-registration)
  • GOV.UK: Pavement licences guidance (https://www.gov.uk/government/publications/pavement-licences-guidance/pavement-licences-guidance)
  • GOV.UK: Workplace fire safety, your responsibilities (https://www.gov.uk/workplace-fire-safety-your-responsibilities)
  • GOV.UK: Register as an employer (https://www.gov.uk/register-employer)
  • GOV.UK: Register for VAT (https://www.gov.uk/register-for-vat)
  • Working Time Regulations 1998 (https://www.legislation.gov.uk/uksi/1998/1833/contents)

Menu, rota and website before the first night

tischlein gets your bar online before opening night: website with opening hours, a digital drinks and food menu with allergens, and a rota that checks rest periods against the Working Time Regulations. You tell the chat what you need and check the preview.

New venues get a discount on the plans in the Startup Center at /gruenden.

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Frequently asked questions

What licences do I need to open a bar in England?

A premises licence from your local council for alcohol, music and late-night food, with a designated premises supervisor who holds a personal licence. Add a music licence, food business registration if you serve food, and a pavement licence for outdoor tables on the public pavement.

How much does a premises licence cost?

The application fee runs from £100 to £1,905 depending on the rateable value of the premises, plus an annual charge. A personal licence costs about £37 according to council pages.

Do I need a music licence?

For live or recorded music in a pub or bar you usually need TheMusicLicence from PPL PRS. Royalty-free music needs none.

Can young workers work behind the bar at night?

Young workers aged 16 and 17 should not work between 22:00 and 06:00, and are limited to 8 hours a day and 40 hours a week. Exceptions exist in hospitality; check them with an employment adviser before you plan the rota.

Do I have to share tips with staff?

Yes. Under the Employment (Allocation of Tips) Act 2023, in force since October 2024 in Great Britain, tips, gratuities and service charges are passed on to workers, allocated fairly, with a written policy and records.

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