The legal jargon and intimidating stuff
- Coral Ryder
- Mar 7, 2024
- 11 min read
Updated: Jun 13, 2024
Register your business:
"Ignorance of the law is no defence against it". It is therefore of paramount import that we know the law in relation to our business and adhere to it. Once we start earning over a thousand pounds we must register our business with HMRC as it is a legal requirement to do so. Choosing what to register as is also important, will it be as a sole trader, in a partnership, as a limited company or as a CIC community interest company? As a sole trader you are in full control and solely responsible for your business, you get all the profits and the liabilities. As a partnership the roles, responsibilities and liabilities are shared amongst all partners. Where as a limited company the shareholders have mutual responsibility with limited liability. A community interest company on the other hand differs in that it benefits the community and has its own regulations to be adhered to. It is better suited for social enterprises.
My business "Spirit Within Art" has been registered with HMRC for a number of years. I registered my enterprise when I started to earn money from private sittings and workshops. I chose to register as a sole trader as it was more fitting to my work. I get to be my own boss and set my own working hours; which is a must when my work hours are limited due to family commitments and personal health issues.
To set up, I first had to register online and create a HMRC account. I was then sent a unique user ID. Once logged in I then followed the step by step instructions on the website. The deadline for those registering this year is 5th of October 2024, if they wish to submit their first tax return.
Working as a sole trader means it is my responsibility to ensure that my self assessment tax returns are completed and returned on time. This must be done every year that my business is running, and if I cease to trade I must inform them otherwise face unnecessary fines. Tax returns can be completed between the end of the business year April 5th, and the 31st January the following year. For example: the business year ending 2023 can be filed between April 6th 2024 and the 31st January 2025. Having a deadline looming can be daunting. I find it less stressful if I fill out my tax returns early whilst the tax year and books are still fresh in my mind. It is a legal requirement to keep accurate business records and to retain them for a minimum of 5 years. Being forgetful and intimidated by paperwork, I find it extremely helpful if I log all incomings and outgoings, in chronological order as soon as possible after each transaction.
Being self employed also means being responsible for paying our own taxes and national insurance (NI) contributions. After completing your tax returns HMRC inform you of what taxes you owe, and depending on what you earned, on whether you need to pay NI. The normal tax year stems from April 6th of one year, to April 5th of the following year. for example: April 6th 2023 to April 5th 2024.
Taxes can be paid in advance in two instalments, and are based upon the previous year, and are due on January 31st and July 31st. Alternatively they can be paid at the end of the tax year (April 5th) the deadline being January 31st of the following calendar year, for example: tax year April 6th 2023 to April 5th 2024, payment is required by January 31st 2025.
How much NI you pay depends on profits, earn between £6,725 - £12,570 NI is £3.45 per week, between £12,570 to £50,270 and its 9%. Presently the tax-free personal allowance you can earn before you pay tax is £12,570. Once you earn over that and earn between £12,571 and £50,270 you will pay 20% tax contribution, between £50,271 and £150,000 its 40% and over £150,000 its 45%.
Setting up my own business was exciting but very nerve racking. I was uncertain of how to proceed. Upon doing some research I found that HMRC had lots of useful information on how, and if you need, to register your business. On their website at: GOV.UK they provide step by step instructions, guidelines and support from how to register your business, to how to fill in your tax returns. Further useful tips they provide can be found on YouTube.
Being someone whose uncomfortable dealing with money, and who finds paperwork scary and intimidating, I fret over whether I am doing it right or not. I therefore found the government site helpful and can highly recommend signing up to their business support email subscription. I have also found studying creative enterprise extremely helpful in filling in the blanks and guiding me through improving my business and setting up as a creative entrepreneur.
Intellectual property (IP):
Intellectual property what is it? According to Gov.UK "Intellectual property is something that you create using your mind - for example, a story, an invention, an artistic work or a symbol."
Intellectual property is the ideas we bring forth into fruition, the unique creative arts we express. In relation to my enterprise this is the spirit portraits and soul to soul art I produce, the poetry and lyrics I write and spiritual merchandise I design. Under legislation we own the rights to our IP's through copyright, patent, trademark or design, unless under a specific contract that states otherwise, or we have sold or passed on those rights to another. IP's can be co-owned, belong to people and/or businesses, and the rights can be sold on or transferred. If working in collaboration it is important to consider if contracts are required in order to safeguard your intellectual property.
Personally I understand the need to protect ones intellectual property having been on the receiving end of someone stealing my work and passing it off as their own. This resulted in people being misled into buying copies of my work, at $125, under the guise of them being images of their "Spirit Guides". Intellectual property rights are important in protecting our works from being stolen and used without our permission. They are also important in protecting the public from being ripped off and sold pirated copies. Even though our IP's are legally protected I think it's prudent to document our works so that they are time stamped and dated, just in case we need proof of originality or need to take legal action. I therefore sign and date my works, and place my logo/artists signature into my artwork, and my song lyrics are registered with PRS.
Point of interest: In May of 1942 the Two Worlds Magazine printed copies of Frank Leah's spirit portraits without his express permission. Leah subsequently took legal action against the magazine. In 1951 Judge Vasey found in favour of Leah ruling Leah owned the copyright under Section 5,1 Copyright Act 1911: “the author shall be the first owner of the copyright therein: provided that (a) where, in the case of engraving, photograph, or portrait, the plate or other original was ordered by some other person and was made for valuable consideration in pursuance of that order, then, in the absence of any agreement to the contrary, the person by whom such plate or other original was ordered shall be the first owner of the copyright." His case in law studies, is still debated in Universities today where they speculate over “how can collectives become included within art practices?” and the controversy over who owned the copyright, Leah and if he was the only author, or was it the father as a work of hire and what the influence of spirit had to do with it.
Copyright laws protect peoples exclusive rights to their intellectual and creative property. The first copyright act was introduced in 1709 to protect the rights of publishers. Introduced during the reign of Queen Anne, it was known as the "Statue of Anne". Some decades later, parliament was lobbied by the artist William Hogarth leading to the "Engraving Copyright Act of 1735", known as "Hogarth's Act 1735". He lobbied for the protection of artists' rights after discovering pirated copies of his successful works "A Harlot's Progress (1731-1732)" were being printed in bulk that he was not being compensated for. Over the centuries these acts were changed periodically. Hogarth was repealed and changed to the Copyright Act of 1911. We now have the "Copyright, Designs and Patents Act 1988". This law automatically gives creatives rights over the artistic works they produce; be it literacy, musical, story, sculpture, artwork, sound recordings, film, broadcasts.
In general, owners rights to their creative produce are automatically protected by copyright laws, which safeguard our rights over what can and cannot be done with our creations. However, there are some that require to be applied for, such as: registering a design, trademark or applying for a patent.
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Type of protection | Intellectual property it covers | Time to allow for application |
Product names, logos, jingles | 4 months | |
Appearance of a product, including its shape, packaging, patterns, decoration | 3 weeks | |
Writing and literary works, art, photography, films, TV, music, web content | No application needed | |
Inventions and products, for example machines, medicines | Around 5 years |
A Trademark is a form of intellectual property right, designed to protect Brands.
The Trade Marks Act 1994 is the law that covers the registration and the protection of registered trademarks. A trademark safeguards your brand. It can be a recognisable phrase, word, or symbol that legally differentiates your products and/or services from another's, such as your logo, name, or slogan. Once established within the public eye, it easily distinguishes your brands identity, reputation and quality. Registering your trademark provides legal protection against those who would misuse or steal your brands identity, services or products. It costs £170 for a single class application, and a further £50 per class thereafter.
When making an application you need to classify which of the forty five class group/s your services/goods come under. It is thereby wise to be prepared, do some research and plan ahead to understand the classification system before registering to avoid any unnecessary fees or legal issues down the line.
A Patent is another form of intellectual property rights specifically for inventions. The Patents Act 1977 is the main law governing patents, it sets the requirements for applications, grant processing and law relating to disputes regarding patents. A patent is a legal document granting the holder the exclusive rights to their invention and product for a set amount of years. These rights help prevent others from copying, making and selling your invention without your permission, and to take legal action against those who do. A patent only lasts 5 years, at which point it must then be renewed every year if you wish it to be continued, the maximum being 20 years.
To apply for a patent your invention must be new, innovative or something that can be produced or used. Registering your invention with the Intellectual Property Office (IPO) can be done online, via post or email. The cost for an application and processing is from £310. It is highly recommended that you do your research and understand the process before applying. It is also advisable to seek legal advice from a patent attorney.
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Stage | Apply online | Apply by post or email |
Filing an application (if you pay when you apply) | £60 | £90 |
Filing an application (if you pay later) | £75 | £112.50 |
Search | £150 (plus £20 for each claim over 25 claims) | £180 (plus £20 for each claim over 25 claims) |
Substantive examination | £100 (plus £10 for each page of description over 35 pages) | £130 (plus £10 for each page of description over 35 pages) |
Design, is another example of intellectual property rights in relation to the shape, decoration and appearance of designed products. Unregistered designs are automatically protected from being used without your permission for a set amount of time; the length of time depending upon the type of design.
Under 'Design right' the shape and configuration of a design is protected for a duration of 10 years after first sold or 15 years after its creation; whichever ceases first. Under 'License of right' you must allow others the use of your design if they seek permission within the last 5 years of protection. The appearance of your design however, is only protected for 3 years from the date it goes public. If you wish to extend the period of protection over your designs, and have added proof of legal ownership you can register them with the Intellectual Property Office (IPO) online or via post. A design registration lasts 5 years, if you wish to extend it further it requires to be renewed every subsequent 5 years to a maximum of 25 years. When registering a design, it must be new and may include one or more of the following: shape, arrangement, pattern or colour/decoration. The cost for registering your designs start from £50 for one, to £150 for up to 50. An application must include detailed illustrations of your designs. The gov.uk site has detailed information on how to register a design.
Insurance companies:
As a medium and spirit artist I need to find an insurance company that covers my particular practices, as not all insurance companies have mediumship cover. In the past I have been with Balens/Zurich as it is the preferred insurer of the SNU and I already have cover through them as an approved healing medium of the SNU.
Expanding my enterprise I need to review what insurances I need. I thereby compared a few insurance companies looking for a policy that includes public liability, professional indemnity, and that specifically covers mediumship. I found some companies claimed they provided mediumship cover, only to find it was not an available option to choose from when seeking a quote. I did manage to get a few quotes and it will cost from £45 a year.
Protectivity insurance premiums are from £3.14 a month which includes public liability/professional indemnity. With equipment cover, personal accident and legal expenses added it would be £9.95 a month.
The UK paranormal society was useful in that it provides guidelines and a brief overview on what insurances you may wish to take out in relation to mediumship and paranormal work. They provide a link to Westminster insurance.
The Arts Union gives free insurance cover to its members that provides up to 5 million product and public liability. It also covers "accidental injury to any person" and "accidental loss/damage to property" plus activities such as teaching and exhibiting. Memberships costs £42 a year. It maybe prudent to enquire if mediumistic art is covered by the Arts Union.
Insurance: Insurance needs to cover public liability to ensure your working space such as shop, stall, studio is protected against any accidents or injuries that may occur. Professional indemnity to safeguard against being sued, it covers your legal fees and advice. And product liability, to cover any costs incurred should your product hurt someone. (e.g. such as dreamcatcher with this is not a toy: decorative or display only) You also may need to consider business contents to cover stock and equipment related to your enterprise.
Health & Safety: Health and safety in the workplace is extremely important and we should always undertake a risk assessment to ensure our own and customers safety. The Health and Safety at Work Act (1974), is legislation related to health, safety and welfare in the workplace. It helps keep people safe, and is aimed as a preventative measure to protect those in the workplace from work-related injury, illness, or death. It promotes good safety practice and proper training in carrying out the necessary risk assessments and appropriate preventative measures required to ensure a safe accessible environment, where clients needs can be met.
You can download a risk assessment template from Health and Safety Executive. This site provides information about managing risks and risk assessment at work. You can utilise the template and cater it to your business. It is important to understand what the potential risks are and how to handle them appropriately. A risk assessment plan should include what you already do to prevent and control risks, along with who may be at risk of harm and how, what further action maybe needed, by whom and by when.
Licenses and Permits:
When selling at stalls or working in a studio, do you need a license to play music, etc.
To practice spiritual healing I must be an approved healer of a healing organisation and have appropriate insurances.
Working in certain countries requires specific permits.
The Data Protection Act (2018), this act is important as it controls and protects how personal
information is used and stored by organisations. As a tutor, sole trader and creative entrepreneur working within the public I must adhere to GDPR rules and regulations to ensure that any students’ and customers personal data is handled and stored securely. There are strict regulations that must be adhered to, known as “data protection principles” these ensure that data is used transparently, lawfully and limited to what is necessary along with being accurate and protected securely against unauthorised use, loss, or destruction. It also provides the individual with the right of access to information that is stored about them and to be informed how their data is used.
Trading Standards and Consumer Rights
In relation to mediumship, our practices used to come under the Fraudulent Mediums Act (1951), which had replaced the Witchcraft Act of 1735 and the Vagrancy Act of 1824. Now our practices come under the Consumers Act of 2008.
Terms and Conditions
licensing agreements for your creations
Environmental Regulations
Contract Agreements: We live in a suing society, it is therefore wise to have a disclaimer to protect yourself and your clientele from any mishaps or misunderstandings. Disclaimer in relation to workshops, seminars and private sittings:
Government Policies Impacting Creative Industries. Such as
government funding available for creative industries. A Government policy has provided opportunities for grants to be applied for, from the Arts Council. They have grants available, specifically for the North East in order to enhance our cultural sector. This has already impacted our area and brought about such opportunities as the Wintertide Festival and the opens creative spaces we find in The bis.
With Brexit and the new changes in laws, policies, shipping and taxes etc. I expected travel to be much harder. However I have noticed very little change except for flight delays. But I cannot specifically blame them on Brexit.
Industry Specific Considerations
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