What you need to think about and action you need to take
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Lots of artists sell art from home. It's a business model that can work well for many artists.
​BUT you do need to be aware of the legal and other  implications of selling from home.
There's a BIG DIFFERENCE between selling via post or the internet and developing a retail outlet in your home.

This page covers....

  • Pros and Cons of selling from home
  • Business Law
  • Security
  • Mortgage Provider or Landlord
  • Insurance
  • Health and Safety
  • Planning Permission
  • Taxes
ON ANOTHER PAGE
COMING SOON!
  • Storage of Art at Home
While much of the government regulations and detailed guidance relates to the UK, the general principles are good for many countries across the world. 
Please contact me with any useful guides you've found relating to your country.
REFERENCE:

IMPORTANT

ALERT: It's very much YOUR responsibility to do all the necessary checks to find out what you must and can do if you want to run a business making and selling art from home.  Please note how "the rules" work will very much depend on where in the world you live. What I say on this page does not necessarily apply to you - but it might! I also do my best to keep this page up to date and find everything relevant - but cannot guarantee it is and no legal liability is accepted for any of your actions based on what you read on this site.
This site does NOT provide:
  • Definitive answers on matters relating to legislation and regulation on selling art form home
  • "Professional advice" is available from somebody with a relevant business advice and/or accountancy or tax qualification, membership of a relevant professional institute and CURRENT expertise of accountancy requirements or tax affairs anywhere in the world.

Pros and Cons of selling from home
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PROS of selling art from home

This approach works well for:
  • those who like online marketing
  • those not represented by a gallery
  • those generating commissions via contacts and online marketing
Plus you have a short walk to work and no 'travel to work' costs
However it's much simpler if all your sales are by post or the internet and nobody ever comes to your home.
CONS of selling art from home

There's an awful lot of regulations you may need to comply with - not least those relating to liability to third parties and the payment of any taxes for running a business from home.
  • need to research business law relating to selling art from home
  • additional costs (re insurance, taxes, storage)
  • permissions required (re. mortgage lender; planning permission for any change of use)
  • security risks - both personal and domestic and art assets
  • health and safety risks and liabilities
  • storage requirements: your stock never leaves home until it is sold and needs safe, secure and watertight storage plus insurance cover at its retail value (based on evidence of past sales). It can be an incentive to work small! (The winner of a major art prize - who works big - told me he was spending it all on a new external dry and secure store for his stock of artwork!).
  • gallery relationships: gallery represented artists need to check what they can and cannot do re. selling from home
Picture
Lots of paperwork to sell from home

Business Law
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If you sell art from your own home or from a stall you own then you need to complay with all relevant law relating to doing business through face to face sales
On-premises sales

​Selling on your business premises – for example, a shop or market stall (or when a contract is not made off-premises or at a distance)

This is the Government's Quick Guide to the Sale of Goods

These are the links to the detailed Business Companion Guides provided by the Chartered Trading Standards Institute
The Government provides accessible information in the form of a number of Business Guides prepared by the Chartered Trading Standards Institute.

You can access the Guides on the Business Companion website
Relevant legislation for all Business Sales includes the following

Security
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It would be nice to think that everybody who calls or visits is a nice person. Unfortunately that may not be the case.

You need to bear in mind that once out of a public place people do things which they might not try in public.

Artists have had thefts of both household items and artwork and art materials when they let strangers into their home. Sometimes the value of items stolen can be significant. Certainly the nuisance of having to replace essential items can be both time consuming and expensive. Hence the need for insurance - and security.

It's essential to consider security for:
  • You - as an individual
  • Your art materials and artworks
Checklist - Protect yourself and your assets

Extra security precautions are wise when you have open studios or other occasions when you may well have more than one person in your home.
  • Make sure that you have a companion around during open studios when there may be more than one person in your hom
  • Put away valuable items
  • Put away items which can be put in a pocket

 Mortgage Provider or Landlord
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To run a business from home you need permission from your Mortgage Provider or your Landlord.  
Many legal agreements prevent you from running a business from home without permission.
REFERENCE: 
A large proportion of mortgage contracts and tenancy agreements prevent residents from working from home. Social housing tenants, for example, are explicitly barred from starting up a business at home. 
​Home businesses battle against legislative barriers

Insurance

If you're selling from home to people who come to your home you MUST think about Insurance.

House Insurance

First you MUST READ what it says in your house insurance - and specifically what it states in the exclusions clauses.

Your house and contents will be insured as a domestic residence not as a place to retail art.  You MUST therefore make sure you do NOT invalidate your domestic insurance cover.

You MUST inform your insurer if you work from home if you don't want to invalidate your insurance - and face a refusal to pay out in the event of a claim.

Third party Liability

If you have third parties (strangers) into your home you are liable for any accidents or injuries they suffer while in your home.

​You MUST make sure you have adequate cover for third party liability which is specifically relevant to people who are not your family or friends visiting your house for business reasons
Picture
Your home will be under scrutiny!
Ways to limit problems with insurance
  • meet people wanting to buy your art in their own homes or a public place
  • limit public access to Open Studios for a limited number of days in a year - and do an extension to your domestic cover just for those days
  • limit public access to a studio which is separate from the house (with separate additional cover for the business use and public access)
READ MORE about Third Party Liability in the UK in Insurance for Art and Artists

Health and Safety
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The general principle is that Health and Safety Rules and Regulations apply if you have anybody else helping your or being paid to assist you with your artwork. 

​​If it's a place of work then the regulations and rules apply to third parties.
For many businesses, all that’s required is a basic series of practical tasks that protect people from harm and at the same time protect the future success and growth of your business.

Health and Safety Made Simple
Ways to limit problems with health and safety

  • limit public or third party access to your studio or house
  • do not employ anybody to help you (if you do then you need to take this section very seriously)
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REFERENCE:

Planning Permission
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In the UK, you almost certainly need planning permission if you plan to accommodate e.g. an art studio or home gallery for making sales
  • make a permanent change to your home
  • build anything new
That's because the new use is classified as commercial and retail and NOT domestic. All such changes of use require planning permission and you cannot be certain permission will be granted. Any application for a change of use must be notified to neighbours and they are allowed to comment on how such a change will impact on them and highlight anything relevant in planning law which suggests permission should not be granted.
You’ll probably need planning permission if you want to:
  • - build something new
  • - make a major change to your building, e.g. building an extension
  • - change the use of your building
Planning Permission in England and Wales

REFERENCE:

Local Laws and By-Laws
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The local government in your area can - via its local laws and by-laws dictate what activity or activities you engage in within your home - and can insist that you cease and desist if you are running a business from your home.
CANADA

Many Cities and/or Municipalities in British Columbia, Canada have bylaws that forbid the selling of goods from your home. This depends on what type of planning zone you live.  
  • A Zone that includes domestic homes can be Residential, or a mix of Business/Residential dwellings.  
  • Some Zones indicate that residents are not allowed to operate any business from a residential dwelling other than offering lessons such as piano lessons, art lessons etc.
(Thanks to Terry Krysak for this information)

Taxes

If you're thinking of building an extension for a studio or dedicating any part of your home to your art practice you need to check out what the implications are locally for the payment of any taxes or claim for any allowances.

Bear in mind it's impossible to provide definitive guidance as tax regimes vary by location and the particular circumstances of your personal set-up within your home
  • You don’t usually have to pay business rates for home-based businesses if you:
    - use a small part of your home for your business, eg you use a bedroom as an office
    - sell goods by post
  • You may need to pay business rates as well as Council Tax if:
    - your property is part business and part domestic, eg if you live above your shop
    - you sell goods or services to people who visit your property
    - you employ other people to work at your property
    - you’ve made changes to your home for your business, eg converted a garage to a hairdressers
  • UK HMRC | Business Rates - working from home
Pros of working and selling art from home
  • You can claim the relevant proportion of running costs expenses relating specifically to the separate / part of your home building dedicated to your art (if your turnover and profit levels are such that the tax people will entertain such a claim). You will need to arrive at an verifiable estimate of such costs.
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Cons of working and selling art from home
  • You may find that you need to pay national business taxes on any chargeable gain on the sale of your home. This would relate to the increase in value of any part of your home dedicated to art on which you have claimed tax allowances for business expenses in relation to development and maintenance. (This will vary from location to location)
  • you have to pay business rates on any independent space dedicated to your business. It requires a valuation as a separate heriditament.
Ways to limit problems with taxes
  • Unless you're a full-time professional artist, consider making any space multi-functional (e.g. a studio doubles up as a guest room when required; the dining room also functions as your office for paperwork from time to time). That way it's part of your home and not just a dedicated business space.
  • Think about the implications re. business rates if you hold an Open Studios for a few days a year - and sell art from your premises. Contact your local tax office to find out what the issues are BEFOREHAND.
REFERENCE:

UK - Guidance from HM Revenue & Customs 

How to Hold an Open Studios

check out the NEW PAGE

Storage of Art at Home

After you run out of wall space, how to avoid the art taking over the house

Coming soon!