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Art Business Info: NEWS

​about art for artists

Art Business & the Coronavirus Pandemic Recession

16/6/2020

1 Comment

 
Catch up on my recent articles about the Pandemic Recession on my main blog (posted there because a lot of artists follow it and it gets lots of readers!).

You can catch up here:
  • READ: It's time to talk recession - and what next!​
The Covid-19 Pandemic to date has made economic survival very difficult for a number of artists.  However the coming Global Recession is going to make life difficult for a lot more artists - all around the world.

It's time to take stock and think about what this means - in the short term and the next 2-3 years.
  • READ: The Pandemic Recession: Likely Impact on Art Sales and Artists
​In this post I'm beginning to set out an overview of what I think are key issues for artists during The Pandemic Recession. It includes some background reading and covers
- the biggest drop in economic growth since records began
​- the impact on art sales and artists
- lessons for artists from the 2008 recession
Picture
The biggest drop in GDP in the UK since records began
PLUS recent initiatives to support artists
  • READ: The Artist Support Pledge
PLEASE DO NOT post art if you're NOT a career artist whose livelihood is currently in jeopardy due to Coronavirus. There's way too much amateur art being posted by people who cannot possibly be paying their household and business bills through the sale of their art. That, to my mind, is just plain selfish and attention-seeking given the intention of this project is to support those self-employed professional artists who have lost their ability to earn their normal income e.g. from sales of exhibited paintings in art galleries and art fairs, teaching art to students and the normal sort of work which many professional artists engage in.
PLUS in relation to Teaching Art - I wrote on my botanical art news blog about the implications for teaching art. Planning considerations are essentially generic whichever type of art you teach.
  • READ Botanical Art Education: planning considerations re. coronavirus
The one thing that is certain is that the virus is not going away any time soon. All that is happening right now is that the reproduction rate is being cut - but a very small percentage of the community has been infected and the virus is still in the community.
I'm going to be continuing to write about the implications of the Pandemic Recession on changing business practices and art business models
  • on Making A Mark - in the coming months,
  • with catchup posts on this Art Business Info News Blog​

READ about the Key Points for Artists, Art Teachers and Art Galleries to date below

Read More
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ICO's Draft Code of Practice for Direct Marketing

16/1/2020

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This is relevant to all artists and arts organisations that practice direct marketing i.e. any method of communication which is directed to particular individuals.

Even if you are not going to comment on the consultation, you probably need to be aware of the contents - particularly if you keep lists of people you contact via email or newsletters.

​The Information Commissioner in the UK proposes to introduce a Direct Marketing Code of Practice - as required by the Data Protection Act 2018. 
​
This month the Information Commissioner's Office (ICO) has
  • launched a public consultation on a draft direct marketing code of practice.
  • published the Direct Marketing Code of Practice - Draft for consultation

Quotes in this blog post come from the draft code of practice.
Picture

What is direct marketing?
​

Direct marketing includes the promotion of aims and ideals as well as advertising goods or services. Any method of communication which is directed to particular individuals could constitute direct marketing. Direct marketing purposes include all processing activities that lead up to, enable or support the sending of direct marketing.
page 3 of Direct  marketing code of practice - Draft code for consultation | ICO
All organisations (and individuals acting as sole traders) have an obligation to ensure their direct marketing activities comply with
  • the General Data Protection Regulation, Data Protection Act 2018 (GDPR) and
  • the Privacy and Electronic Communications Regulations 2003. (PESC) 


​Who needs to know what to do
​

Below I've identified the nature of individuals and organisations and activities which will be covered by the code of practice for direct marketing.

When the Code of Practice is introduced it will set the benchmark against which the behaviour of any artist or art organisation will be measured when involved with direct marketing. Cautions or fines could be the result if you flout it.
You will be caught by the direct marketing rules if you are using data with the intention to market, advertise, or promote products, services, aims or ideals.
I've adapted their examples as who "needs to know" for artists and art organisations below

EXAMPLES:
  • commercial businesses (eg art galleries and artists) marketing their products and services;
  • charities and third sector organisations (e.g. art societies) fundraising or promoting their aims and ideals;
  • (e.g. art societies) canvassing for votes;
  • public authorities (e.g. public art galleries) promoting their services or objectives; or
  • organisations (any artist or art organisation) involved in buying, selling, profiling or enriching personal data for direct marketing purposes.
Following the code along with other ICO guidance will help you to comply with the GDPR and PECR


Consultation: direct marketing-draft code of practice


Read More
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Trading standards for art in the UK: what you need to know about the law and regulations

6/10/2019

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I've given my page about Trading Standards for Artists an overhaul to highlight more clearly the relevant law and regulations that artists need to know about.

Do you know what you need to know?
This page reviews what trading legislation, regulations and consumer protection standards apply to all artists trading with UK consumers 
Picture
My website about Trading Law & Regulations for Artists in the UK

What are trading standards?
​

Trading standards is the overarching term used for the law and regulations applicable to all trading - and some specific examples of trading.

Trading Laws, Regulations and Standards
typically apply to:
  • what you sell
  • how you describe it
  • where you sell
  • how you sell re. contracts & pricing
  • keeping customers safe 
  • ​business information consumers need

They also cover matters like trading hours (e.g. Sunday trading).​

What does this page cover?
​

What, as an artist, you NEED TO KNOW about trading
  • When you start to retail face to face (eg. at an Art Fair) you MUST make be in complete compliance with all relevant legislation and standards for trading.
  • When you begin to work on commission (from your studio or from home) you must understand the regulatory framework for trading
  • When you sell online to consumers living in the UK, then UK law applies to you - wherever you are located.
​

Who is it for?
​

This page is for
  • either artists based in the UK
  • artists trading with people or business located in the UK.

The intention is to develop similar pages for other locations.  You can help by send me what you've found out about online links to similar regulations.

If you want to know more go to the MARKETING SECTION of my website and visit this URL https://www.artbusinessinfo.com/trading-standards-for-artists.html
Subscribe to Art Business Info. for Artists - NEWS by Email
and receive every post via email. 
​(Your subscription is only activated after you verify the link in the email you will receive)

P.S. more regulations! E-Commerce for Artists
​

If selling online you also need to be aware of all the regulations relevant to ecommerce transactions by artists.

You can find out more about these on my page dedicated to E-Commerce for Artists which includes
  • Law and Regulations about Selling Art Online
  • tips for selling online
NOTE: This website does NOT provide definitive advice or answers on legislation and regulation on legal matters relating to where you live. 
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How well do you comply with data protection law?

31/10/2018

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The Information Commissioner's Office (ICO) in the UK has produced a new checklist about data protection law for small business owners and sole traders.

INFORMATION FOR SMALL BUSINESS OWNERS AND SMALL TRADERS

In the recent past, ICO has tended to share information about rules and guidelines on  data protection and privacy in such a way that it suggested a general lack of awareness by the ICO of the special needs of those who are small businesses or small traders - such as artists.  I suspect they received a lot of cries for help from this quarter when GDPR was implemented earlier this year - as all guidance at one point was constructed assuming organisations had people who did this for them!

The main problem for those who are running EVERY aspect of their business is to find out the answers to "what they don't know they don't know " i.e. it's difficult to know you should be doing something about some new aspect of law if you don't even know it exists!

Hence the checklist is a welcome way in which the ICO is becoming a bit more attuned to the needs of sole traders - and people like artists.

This is the link to How well do you comply with data protection law: an assessment for small business owners and sole traders

This is what ICO have to say about what happens when you use the checklist.
Use our checklist to improve your understanding of data protection and find out what you need to do to make sure you are keeping people’s personal data secure. Once you have completed the checklist a short report will be created suggesting some practical actions you can take and providing links to additional guidance you could read that will help you improve your data protection knowledge and compliance.
The checklist is part of the overall set of checklists which have been developed by ICO as part of the implementation of the General Data Protection Regulation which became operative in May 2o18.

Do let me know how you get on if you use it.
Subscribe to Art Business Info. for Artists - NEWS by Email
and receive every post via email.

More information on this website

On this website UK artists - and all those artists dealing with clients and art collectors in the European Union - can also read about:
  • General Data Protection Regulation​ for Artists and Art Organisations
  • Privacy and Electronic Communications Regulations - as part of e-Commerce for Artists
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Want to set up an online art gallery with ecommerce?

28/4/2017

0 Comments

 
I got an email this morning asking questions about the tax aspects of setting up an online art gallery and ecommerce which involved artists and paying customers who might be located anywhere in the world

Below you can read:
  • the email I got and the "short sharp" response I sent below.
  • a checklist for anybody thinking about setting up an ecommerce facility to sell art
ecommerce and tax for artists

What are the tax implications of selling art online?
​

This is the email.  I've numbered the questions to make them more accessible online in a blog post
Dear Katherine,

Firstly, I owe you my sincerest gratitude for all the information you have presented on this website. It has answered many questions I had and for that I am grateful.

I am on the verge of launching an e-commerce online gallery and I was hoping you could answer a few questions for me. This my first time dealing with anything to do with e-commerce and selling online so there is still a lot I don’t understand. 

1)  Some of the artists who I represent do not reside within the UK or the EU, and there is no guarantee that any paying customer would reside within the UK or EU either. How would this affect me regarding tax?
​
2)  When this business takes off, I plan on becoming location independent. ​How will this affect my tax status as I won’t be living within the UK but my business will be registered in Britain?

3)  How would it work when it comes to putting an address on my invoice if I’m only in the same location for a limited amount of time?

Thank you again,
Kind regards,

Mr Gallery Man ( a pseudonym)
It generated a very "to the point" response from me!
​

Dear Mr Gallery Man

If you are setting up a business you need professional (i.e. paid) tax advice from an expert to make sure that:
  1. -  you are aware of all your legal responsibilities tax wise
  2. -  where you live and where you operate are tax efficient given who you expect your customers to be
  3. -  you get to keep your house because the tax man doesn't come looking for the tax that you have avoided - with penalties and a possible prison sentence
This is serious. You need proper advice. That's not going to come from me.

The next point I'd make is that I have seen any number of people have the bright idea of setting up an online art gallery operating through ecommerce in the last 10 years. I'd say round about 95-99% of them no longer exist.

I think you need to do more research about the marketplace and what sort of investment you need to make in time and effort - and contacts / social media following - to make it work.

My one piece of advice for you is if you have never run a business before and if you have never been involved in the art market before, run away fast before you waste an awful lot of money for no return.

Regards

CHECKLIST:
​How not to get stung when setting up ecommerce!
​

  1. Do thorough research first. You should never be starting any business where you don't fully understand the full implications. Those that do go out of business very fast.  How anybody could be contemplating starting an ecommerce business without what understanding what they are getting into is beyond me!
  2. Get professional tax advice if you plan to set up a business. You're an amateur. You haven't got a clue what you don't know about tax. Tax experts exist for a reason. Paying for tax advice is a legitimate business expense which is deductible against tax - so long and only if it is related to the business and not your personal income. If you can't afford the tax advice you definitely can't afford to set up in business involving ecommerce.
  3. Understand the competition - you need to research and understand the business model adopted by your competitors. Those who are still in business after  few years either know what they're doing, have good advisers, are prepared to keep going even if they're not making much money - and/ir the tax man has not yet caught up with them.  Take a look at how where they are located and how they deal with local taxes on transactions for people living in different countries. Don't assume that what they are doing is correct, however it gives you a basis for an intelligent discussion with a tax expert!
  4. There is no escaping tax liability - make sure you don't get landed with an enormous tax bill! - Governments have woken up to the fact that they are losing out massively on tax revenues through the amount of business which is now transacted online. Tax authorities are now paying a lot more attention to online businesses. You should assume that anything you are doing which evades payment of tax (whether deliberate or inadvertent) will result in a tax bill plus penalties plus a possible prison sentence. They are getting very serious about this.
  5. Understand the differences in tax treatment of private sales vs sales via art dealers and galleries. What quite a few people don't understand is that private sales - between an sole trader artist and a paying customer are very different from sales via third parties. There's also a difference between a third party which hosts a site that enables artists to make contact with paying customers and those where the artist is represented by a gallery and sells art via the dealer/gallery online.  The differences largely relate to thresholds for payments of additional taxes; liability for additional taxes unrelated to thresholds and whether they way the ecommerce is configured is deemed to be an evasion of tax.
  6. Understand why Tax gets much more complicated when transactions are online. You have to make sure you observe the tax regime for where you live, where your business is located - and also where your paying customer lives. For example, with respect to the pursuit of lost income from tax on online transactions for digital services, the EU changed the treatment for all digital transactions in 2015. Now VAT is payable based on the place where the customer lives NOT where the artist or the business is located - and there is no minimum threshold for registration in another country (a total nightmare!). They're also not at all keen on people trying to get round this by saying they won't do business with anybody outside the country where they live - and were threatening penalties for this last time I read up on this!
EU VAT rule change
From 1 January 2015, the rules around the European Union (EU) VAT place of supply of services will change. This will affect the sales of digital services (broadcasting, telecommunications and e-services) from a business to a consumer (private individuals and non-business entities for example, public authorities or charitable bodies). The place of taxation will be determined by the location of the consumer.
VAT: businesses supplying digital services to private consumers
Bottom line, if you are
  • operating as a sole trader as an artist or art tutor involving ecommerce 
  • or you are hosting an online gallery with ecommerce facilities for selling art for artists you represent and/or other artists,
you need to be very careful that you have sought professional advice and checked out all relevant tax aspects for your particular set-up - which you have explained very clearly to your tax adviser. (NB Only telling them what you think is relevant isn't a helpful approach since you don't know what you don' know!)

Just because somebody says they operate in a particular way doesn't make that right or legal - unless they can produce the letter from their tax advisors explaining what they can and cannot do!

BTW I'm NOT a professional tax expert. You should make sure you also read the note below about what this site does not do.

You can learn a lot from authoritative tax sites online - but they don't have all the answers!
​

More information about tax and vat for artists
​

You can read more information on this website on the following pages in the Money and Tax section
  • Tax Tips for Artists
  • ​VAT for Artists
The information I collect, collate and organise on this website largely relates to information accessible to anybody from authoritative sites - either formal government tax authorities or professional tax advisers. Plus some common sense advice from me about how to organise your tax affairs.

What this site does not do

This site does NOT provide:
  • Definitive answers on all matters relating to tax records for where you live. 
  • "Professional advice" available from somebody with a tax qualification and current expertise of tax affairs anywhere in the world. 
I recommend that you pay a professional for tax advice IF:
  • your tax affairs are complicated 
  • you have a specific tax query which you can't find an answer to from official information available online.
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ABOUT ART BUSINESS INFO. FOR ARTISTS
This website aims to provide a compendium of resources about the art business for artists. Please read "PLEASE NOTE"

It helps artists learn how to do better at being business-like, marketing and selling their art and looking after their financial security.
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Copyright: 2015-2021 Katherine Tyrrell | Making A Mark Publications
​
- all rights reserved
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If you've got any suggestions for what you'd like to see on this website please send me your suggestion
PLEASE NOTE:
1) Content and the law change all the time. It's impossible to keep up with it if you're not working on the topic full time. 
​2) I research topics carefully. However, I am totally unable to warrant that 
ANY and/or ALL information is 
  • complete and/or
  • professional and/or
  • wholly accurate and/or 
  • all links lead to the most current information (at the time of writing)​
​3) Hence all information I provide comes without any LIABILITY whatsoever to you for any choices you make. 
4) This website is FREE FOR YOU but not for me. ​Links to books are Amazon Affiliate links. Buying a book via this website means I get a very small payment which helps to fund and maintain this website. .I much appreciate any support your provide. Adverts are provided by Google AdSense - but the adverts do not mean I endorse the advertiser.
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