How to go about it

Despite the benefits, registering as a business should not be rushed into unless you have started to sell work, or be paid fees for any other freelance work such as undertaking workshops, commissions or assisting others.

If you are earning money and haven't registered then see Step Seven: Registration.

A number of recent arts graduates may be surviving on a mixture of welfare benefits and part-time work, and stepping into official 'trading status' can be a big step.

Remember: it is perfectly legal to be an 'employee' of an organisation or company (e.g. having a part or full-time job working in a shop or restaurant) and be self-employed at the same time. However, it is wise to read your employment contracts that there are no restrictions on running a business outside contracted hours.

Many creative people who trade also rely on another source of income from employment. It is useful to have a part-time job during the first years of trading for increased financial support whilst establishing a practice or creative business.

From the moment you decide set up a business or become self-employed, it can be a good idea to allow some time before commencing; this is called the 'pre-start-up' period and could last between 8 and 12 months. This time can be used to undertake research and attend business courses. Registering as self-employed is relatively straight forward, though you need to fully understand the process, see Step Seven: Registration.

This article is from the Artlaw Archive of Henry Lydiate's columns published in Art Monthly since 1976, and may contain out of date material.
The article is for information only, and not for the purpose of providing legal advice.
Readers should consult a solicitor for legal advice on specific matters, and artists in London can get free online legal advice from Artquest