What is a UK SIC Code?

The Standard Industrial Classification (SIC) system was first introduced in the UK in 1948. It serves as a critical tool for classifying business establishments and other statistical units based on their economic activities. The SIC framework is essential for the collection, tabulation, presentation, and analysis of data, ensuring uniformity across various sectors. Beyond governmental use, SIC codes are also employed by non-government bodies to classify industrial activities into a common structure.

Currently, the UK SIC system is divided into 21 sections, 88 divisions, 272 groups, 615 classes, and 191 subclasses. This hierarchy facilitates detailed classification and analysis of economic activities.

How to Read a UK SIC Code

The UK SIC codes are closely aligned with the NACE system. However, a fifth digit is added to create subclasses of the NACE four-digit classes where necessary. The UK SIC system is hierarchical and consists of five digits. It is organized into 21 sections, each represented by a letter from A to U. These sections are further divided into divisions (two digits), groups (three digits), classes (four digits), and, in some cases, subclasses (five digits).

Section	C	Manufacturing
Division	10	Manufacture of Food Products
Group	10.1	Manufacture of Dairy Products
Class	10.51	Operation of Dairy and Cheese Making
Subclass	10.51/2	Butter and Cheese Production

History of UK SIC Codes

Since its introduction in 1948, the SIC classification has undergone several revisions to accommodate new products and industries. Major revisions occurred in 1958, 1968, 1980, 1992, 1997, and 2003. The 1997 and 2003 updates were not full-scale revisions but addressed user demand for more detailed subclass information and included minor renumbering and revisions.

The most significant update, UK SIC 2007, was a major revision reflecting changes in the NACE system. This update aligned the UK SIC with international standards, ensuring consistency in economic classification.

Changes from UK SIC 2003 to UK SIC 2007

SIC (2003)		SIC (2007)
A	Agriculture, hunting and forestry	A	Agriculture, forestry and fishing
B	Fishing
C	Mining and quarrying	B	Mining and quarrying
D	Manufacturing	C	Manufacturing
E	Electricity, gas and water supply	D	Electricity, gas, steam and air conditioning supply
		E	Water supply; sewerage, waste management and remediation activities
F	Construction	F	Construction
G	Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods	G	Wholesale and retail trade; repair of motor vehicles and motor cycles
H	Hotels and restaurants	I	Accommodation and Food Service Activities
I	Transport, storage and communications	H	Transport and storage
		J	Information and communication
J	Financial intermediation	K	Financial and insurance activities
K	Real estate, renting and business activities	L	Real Estate Activities
		M	Professional, scientific and technical activities
		N	Administrative and support service activities
L	Public administration and defence; compulsory social security	O	Public administration and defence; compulsory social security
M	Education	P	Education
N	Health and social work	Q	Human health and social work activities
O	Other community, social and personal activities	R	Arts, entertainment and recreation
		S	Other service activities
P	Activities of private households as employers and undifferentiated production activities of private households	T	Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use
Q	Extraterritorial organisations and bodies	U	Activities of extraterritorial organisations and bodies

What are the UK SIC Codes Used For?

• Provides a framework for the collection, tabulation, presentation, and analysis of data, promoting uniformity.
• Used for administrative purposes and by non-government bodies as a convenient way of classifying industrial activities into a common structure.
• UK companies are required to change their SIC code to the UK SIC 2007 classification upon filing their annual return from October 1, 2011.

Why are UK SIC Codes Important?

UK SIC codes serve as a vital tool for identifying the specific line of business in which a company operates. They are essential for regulatory compliance, particularly when filing a company’s annual return. By providing a standardized framework, UK SIC codes facilitate industry analysis, enabling the comparison of businesses within the same sector. Government agencies rely on UK SIC codes to efficiently allocate resources and develop policies tailored to the unique needs of specific industries. These codes also assist investors and analysts in evaluating market trends and assessing the economic health of various sectors.

Businesses leverage UK SIC codes to benchmark their performance against industry standards, gaining insights into their competitive standing. Additionally, these codes help in identifying potential business partners or competitors within particular industries, fostering strategic networking opportunities

In market research and the development of targeted marketing strategies, UK SIC codes prove invaluable. They also play a crucial role in risk assessment and management for insurers and financial institutions, offering insights into the operational nature of businesses.
Furthermore, UK SIC codes contribute to environmental and regulatory compliance by categorizing industries subject to specific regulations, ensuring adherence to legal and environmental standards.

Relationship with ISIC

• UK statisticians played an important part in the formulation of the first ISIC (International Standard Industrial Classification of All Economic Activities), issued by the United Nations in 1948 and revised in 1958, 1968, 1989, 2003, and in 2008.

Recent Updates and Amendments to UK SIC Codes

While the UK SIC 2007 remains the latest major update, there have been occasional updates and amendments to address specific classification issues. These updates are typically minor and are aimed at refining the application of existing codes rather than introducing new classifications. Such updates ensure the SIC system remains relevant and accurate in reflecting the evolving economic landscape.

For the most current information on updates and guidance, businesses and individuals are encouraged to consult the Office for National Statistics (ONS) and Companies House websites. These platforms provide detailed documentation and notices that may impact the application of SIC codes.

The Future of UK SIC Codes

The UK SIC codes play a vital role in the classification of economic activities, providing a standardized framework for data collection and analysis. Understanding these codes is essential for businesses, statisticians, and policymakers. As the economic landscape continues to evolve, the SIC system will likely undergo further updates to ensure it remains a relevant and effective tool for economic classification.