Showing posts with label Brexit. Show all posts
Showing posts with label Brexit. Show all posts

Monday, April 19, 2021

New rules and regulations for Art Business - and Artists

I'm trying to catch up on the amount of change in law and regulations impacting on both artists, art organisations and the art market in the last 18 months.

I'm creating new resource pages for:

  • international shipping 
    • rules of origin
    • export licences
  • money laundering regulations for art market participants where a transaction (or series of transactions with the same buyer) exceeds £10,000

Import and export of artwork etc

Since 1st January 2021, 

  • I've had LOTS of detailed queries about HOW to import / export art without falling foul of the new regulations
  • there has been huge traffic to my Art Business Info for Artists in relation to international shipping and the import or export of art (and other created artworks and/or art material)

As at the beginning of January, there wasn't much to go on in terms of what people needed to do post Brexit - so I held off making changes until the situation improved.

I'm now very slowly slogging my way through the HUGE amount of new documentation from HMRC and various government departments which relates to the import / export of art and art materials post 1st January 2021 i.e. post the UK leaving the EU.

My brain hurts! 

rules of origin for art business
View of the new page on Rules of Origin on At Business Info for Artists


To date:

  • I've got one new page up - on "Rules of Origin" 
    • in the SHIP ART section of Art Business Info for Artists
    • it's a dedicated page under International Art Shipping: How to ship / export art
      to other countries
  • I'm working on Export Licences - and when these are required - which will hopefully publish this week.
    • these are required in relation to specific types of art over a specific valuation
I've still got to get my head around the Northern Ireland question and the border in the Irish Sea....

Mandatory Money Laundering Regulations for all Art Market Participants


ALERT!!! Plus I know I need to create a NEW page related to Money Laundering Regulations for Artists (and Art Galleries etc.) in the MONEY section. 

This WILL impact on more than a few artists, selling exhibitions, art societies and art galleries because
  • The art market is a known target for money laundering and is officially regarded by HMRC as "high risk"
  • The EU Fifth Anti-Money Laundering Directive (5AMLD) was enacted into UK law with effect from 10 January 2020 and anti money laundering compliance has NOT BEEN OPTIONAL since 10th of January 2020
  • The new regulations require a LOT of information to be collected and formally recorded and retained in relation to purchasers of artwork valued (as one lot or an accumulation) above the equivalent of £10,000
To be exempt, an artist (or art organisation) must be 
Not trading in or acting as an intermediary involving a “work of art” in a single transaction, or a series of linked transactions of £10,000 or more.
So basically, every time you price and deal in an artwork above £10,000 you (or your agent) 
  • MUST register to comply with the Regulations and 
  • MUST maintain all appropriate records - which will be open to inspection by those monitoring compliance (think VAT records!)
Art Market Participants (AMPs) which includes any person or organisation dealing in art - have until 10th June 2021 to register to comply with the Money Laundering Regulations (i.e. it was deferred because of the Covid-19 pandemic).

See for example The Art Newspaper's article (updated in March 2021) The art market is 'high risk' for money laundering, so ignore new regulations at your peril

More on this when my new page is published in the near future.

The pages improve with age!

As always with these sort of initiatives my first published page is the best I can do at the time. HOWEVER they always improve over time as:
  • I find more information 
  • fill the gaps in advice
  • make the entire page more related to the art business - while at the same time providing the context for "what an artist needs to know" (or art gallery or art collector!)

Monday, January 11, 2021

How to Ship Art - for online art sellers / post Brexit

How best to pack, mail and ship art art has been a VERY popular topic since lockdown as more and more people make sales online. 

It's got even more popular since 1st January in terms of making sense of Brexit.
EORI numbers and export commodity codes anybody? Do you know about the Rules of Origin?

HOW TO PACK, MAIL & SHIP ART: A Compendium of Information & Advice about Packing & Transporting Art provides access to the many pages of information I provide in the Shipping Art section on my Art Business Info. for Artists website

how to pack, mail and ship art


It's currently the most popular page on my Art Business Info for Artists website - I guess because
  • most sales of art are now taking place online
  • artists running an art business - where they export art internationally - are puzzling out the changes 
Below is a screenshot of its contents

contents of how to pack, mail and ship art
contents of how to pack, mail and ship art

I've just begun to realise I need to write a new section about "Rules of Origin" given some of what is happening at the ports.

The reality is that if you are trading - and particularly if you are exporting - there is a LOT of law and regulations that you need to know about - as well as which are the best ways to pack, post and ship art!

However I also have to emphasise what this page is NOT! I answer questions when I'm satisfied that people have read what is available on these pages and are not just using me as a sidestep to doing the reading. 

what this page is not


Monday, December 21, 2020

Art and Brexit #4 - all change as from 1 January 2021

There's 11 days left.....

  • Have you prepared for Brexit? Or just put your head in the sand and hoped it would go away?
  • Do you know what changes will happen? Or are you just hoping most of it stays the same?
  • Have you read the official guidance? Or do you not like grappling with officialese and are waiting for somebody else to tell you what to do?

Frankly, I'm assuming most artists - including those who buy goods made in the EU and those who export permanently or temporarily to the EU - have not quite got their heads around Brexit yet....

This is a bit of a memory jogger about where we've come from and  a prompt re. what the future looks like from an art business perspective. 

Brexit Guidance for Art and Artists
Brexit Guidance for Art and Artists
- web page on my Art Business Info for Artists website

Frankly - who knows what's going to happen on 1 January 2021!!

it would appear at the moment that on the 1 January there will still be a "no deal" situation. However there is also thinking that there might be a deal in the New Year.
My bet is they will extend the time for negotiations because of all the hassle and distractions associated with Covid-19.


Whatever.....

Brexit on Making A Mark

Here's a list of my Brexit posts to date:

Brexit on "Art Business Info for Artists"

    • Likely areas of impact
    • Official Government Guidance
      • Trade, Customs, Tariff Codes, Tax and documentation for import / export / shipping
      • Changes to VAT Rules
      • Import and export of art - sales
      • Import and export of art - for exhibition only
      • Travel
      • Settlement - for both UK and EU citizens
    • Official Guidance for Art Organisations
    • Copyright and intellectual property rights
Do let me know if there is anything specific you want to know which you can't find on my page. I might well develop an FAQs page for artists - but only if there is demand.

Official Government publications

Recent articles about art and Brexit

There's been quite a few articles in the last couple of weeks as the art press remember it's all change come the end of the year!
Michael Gove said on 1 December that ‘A lot of what businesses need to do is the same whether or not we get a free trade agreement or not. There’s no harm in doing these things because they’ll be necessary come what may.’

......and finally

PS Have all of you who use art materials made in Europe stocked up?

Wednesday, July 15, 2020

Artists and the Brexit Transition

Are you an artist with a current, ongoing or prospective business relationship with the European Union?

What will 2021 mean for you?



If you are are, you need to be aware that the UK government put its foot on the accelerator this week in terms of publishing details of transition arrangements.
The UK is leaving the EU single market and customs union, and the end of the transition period will affect citizens, businesses, as well as travel to and from the EU.
I've written a blog post on Art Business Info for Artists: News - about Brexit Transition Info. for Artists which is relevant to all artists who want to:
  • stay living in the UK if you are an EU Citizen
  • continue living and working in the EU if you are a UK citizen
  • travel within the EU in relation to art business matters (eg. exhibitions, teaching on art holidays etc)
  • send (or receive) artwork across borders with the EU
It provides you with the links to where you will find the relevant information - plus how to sign up for tailored updates for your needs.

Here's a taster in the official Cabinet Office Video



[NOTE: All my posts about the Brexit Transition are STRICTLY informative and apolitical - I just tell you what exists which might help.]

Monday, November 04, 2019

Brexit #2: The Pre-Election Update

The government has revved up all its advice pages on Brexit on the GOV.UK website ready for going into "purdah" when Parliament rises tomorrow, prior to the General Election on 2012.

This post is about the latest updates issues prior to the change in what can and cannot be done or said. It's especially relevant to

  • all those who trade outside the UK
  • all those who are not living in their country of birth.
You can also read my first post Brexit #1: Do or Die? About which one might comment that Boris is not dead in a ditch somehere


Image by Tumisu from Pixabay

What is "purdah" in an election context in the UK?


For those who have never worked for the government (unlike me) "purdah is a technical (and quite possibly an inappropriate) term to refer to the constraints on government activity during the period of time between
  • the dissolution of the governing administration and 
  • the swearing in of the new government.
This time around, this will cover an approx. six week period from 6th November to 12th December 2019. 

There are restrictions on what a government can do during this period and very tight restrictions on all publicity. see 

Which is how come I got an email from the HMRC part of the GOV. UK website 4 hours ago to say this
The UK government has agreed an extension to the Brexit deadline until 31 Ja‌nu‌ar‌y 2020. 
HMRC will continue to help businesses prepare for Brexit in all scenarios, including the possibility of the UK leaving the EU without a deal on 31 Ja‌nu‌ar‌y 2020.

  • Many of the steps that you have already taken to get your business ready for Brexit will still be useful preparation for the UK leaving the EU, with or without a deal:
  • if you have received an EORI number starting with GB, please retain this number, your EORI number will remain valid for use in trade with businesses based in the EU if the UK leaves the EU without a deal – your EORI number can be used now to trade with businesses based outside of the EU
  • if you are an importer and have registered for Transitional Simplified Procedures (TSP), you should retain your letter of approval – it will remain valid if the UK leaves the EU without a deal
  • if you received a letter from HMRC telling you that you’ve automatically been registered for TSP, we will be writing to you again soon to authorise you to use it to import TSP standard goods from the EU if the UK leaves without a deal – please retain these letters and your TSP number.
To find out more about the steps you need to take to get ready for Brexit, go to GOV.UK.
Then on the official Brexit Page https://www.gov.uk/brexit it says this

Preparing your business for Brexit


Check how to get your business ready for a no deal Brexit.

Visiting the EU


To visit Europe after Brexit there are things you need to do before you travel.
  • For example, you will need to check your passport, get travel insurance which covers healthcare, and get the right driving documents.
  • Visit Europe after Brexit

Living and working in the EU


  • Living and working in an EU country after Brexit depends on the rules in that country.
  • You may need to register or apply for residency. 
  • You should check that you’re covered for healthcare. 
  • You may also need to exchange your UK driving licence for a licence issued by the EU country where you live. 
  •   Check what you must do in the country where you live 

Staying in the UK if you’re an EU citizen 



Brexit: check what you need to do if there is no deal


I still need to get my head around all this - but thought I'd get the summary drawn to your attention....

.....while you think all you need to do in the next couple of months is christmas shopping and sending off the artwork ordered from your website!

Sunday, September 01, 2019

Brexit #1: Do or Die?

I'm going to start writing periodic posts which either provide:
  • pointers on things to think about re. Brexit
  • feedback on what seems to be happening / changing (or not) post 31 October - should that be the eventual "do or die" date!
This is prompted by the fact I wrote
  • detailed commentaries on the art economy back in 2008 - and periodically thereafter - as went into recession post the banking crisis and the subsequent impact on the wider economy and people's lives.
  • a post commenting on a question about Brexit last week in the Facebook Art Fair Buddies Group
This was the gist of the question. There's a bit more to it - but in essence this is the conundrum many people are facing
Does anyone have any ideas of how a No Deal Brexit is likely to affect us as artists and crafters who make a living selling to the public?
Here's what I had to say - revised for the opportunity to format on Blogger - and the opportunity to add in more reflections.

Posts will either be on this blog and/or on my Art Business Info. News Blog - which you can subscribe to. Probably bigger ones on this one - and smaller updates on the other blog.

DO OR DIE?


The emphasis is emphatically

  • NOT going to be on the politics 
  • it'll be about 
    • how to meet the challenge of Brexit for your art business and 
    • how to share what works and 
    • how to solve problems.
Comments will remain switched off on this blog - however Facebook posts linking to posts about Brexit do provide an opportunity for practical comments ONLY (political comments will be deleted).


What it's like in the art market during a recession


photograph of a hurricane - lots of turbulence in the atmosphere and scope to blow people and structures off their feet

I wrote quite a bit about the art economy during the recession following 2008.

BASIC FACTS are that
  1. Uncertainty causes people to tighten their metaphorical money belts - and they put buying discretionary goods like art on pause. It lasted a long time.  We've seen some evidence of that already.
  2. Those who are well off are mostly unaffected and continue to buy - at Christies and Sothebys - as before. Hence if you are pitching at the wealthy you probably have less to worry about.
  3. If a lot of people lose their jobs then there's a very big dip in disposable income and buying art and galleries start closing, often with little notice (and a lot did, mainly because they weren't run very well as businesses and hadn't made adjustments for a recession). 
    • My guess would be that the less well run art fairs will go under fast - so I'd exercise caution over bookings and deposits - and 
    • Check the status of 
      • organisations running art fairs and/or 
      • any other organisation you place big money orders with and 
      • the track record of the people involved 
    • (the official information available in relation to Companies is a wonderful thing! You can look at the people involved with specific companies and see how many directorships they have for previously dissolved companies)
  4. Many artists started to focus more on making more affordable art for those who were prepared to risk spending on discretionary non-essential items
  5. Artists with no business plans nor understanding of how their cash flows work typically end up having have to take other jobs (if they don't have one already) - IF they can get one - because they're in the same boat as everybody else looking to get income from employment
  6. The climb back to 'business as usual' can be long and slow if it's a deep recession.
  7. Artists who got burned learn to make sure that 
    • they have enough to keep going when sales are lean - and 
    • when to make essential changes to how they do business
and 
If you're a tiny business without an adequate cash reserve then whatever the state of the economy it always pays to have some steady bread and butter income which pays the bills coming in. Brexit has got nothing to do with it.

There are any number of things which can happen which can cause problems - and some people have no inkling just how big some problems can be and you still get by.....somehow....
Speaks the woman who well remembers paying 18% mortgage interest rate at the start of her mortgage! (my comment on the thread about why a lot of the challenges are not dissimilar to other challenges we confront and survive)

What will it be like after Brexit?


Here are some more thoughts and reflections about what makes a difference when the going gets tough.

Monday, June 27, 2016

Brexit #1: What does it mean for UK and EU Art Students and Schools?

There is no certainty right now about Brexit means for art and artists. This is a first in a series of articles commenting (hopefully in an intelligent and factual way!) on what Brexit might mean for different aspects of Art and Artists.

This first article focuses on art students and those wishing to take fine art degrees, short courses, workshops, classes etc in terms of:
  • EU students wanting to study in the UK
  • UK students wanting to study in the EU.
Plus it also comments on some of the implications for art schools and other educational establishments.

I'm trying here to indicate a framework for how things might work going forward.  I'd be very happy to add into this post any information or comments from people with relevant experience or expertise. 

Darwin Building, Royal College of Art in London, spring 2013
Royal College of Art - for postgraduate study

What happens now?


In the short term, nothing changes immediately - apart from on the financial markets. 

When Article 50 is invoked and the negotiations begin it should become clearer what happens next. Two years are allowed to conclude them.  I'll update this post and/or write a new one as and when any changes are announced

However the major question is if and when Article 50 is invoked - and how the various parties behave towards one another as negotiations proceed.

Hopefully at some point everybody will stop running round like headless chickens and calm down and get on with whatever needs to be done for the best interests of all concerned.

You can be certain during negotiations there will lobbying for special exemptions and deals for specific circumstances. However what those will be and what happens will depend as much on the attitude and tone struck by EU Members and Politicians.

In terms of art students it's much easier to say what's likely to happen in future with respect to EU students coming to the UK than what the EU might decide with respect to UK students wanting to study at an approved educational institution in the EU. It's probably going to be similar - but there are no certainties.

What it means for Art Students


The University of Arts, London issued advice to their students the day before the referendum - What does a Brexit mean for UAL students?  (Its students actually come from over 140 countries from around the globe).

Study Visas to come to the UK


Glasgow School of Art 52
Glasgow School of Art
- the Mackintosh Building
At present you don't need a visa to come to the UK to study if you normally reside within the EU.
If you are a student from a country outside the European Economic Area (EEA) and Switzerland, and not already living in the UK, you need a visa to study in the UK.
University of the Arts, London
However if and when the UK leaves the EU this will very likely change for all students who are EU Nationals.
There will an end of unrestricted free movement. | Douglas Carswell - interviewed on the BBC 27 June 2016
However education might be an area where a special deal is done given the high education sector's dependence on fees from overseas students. This is an aspect to keep an eye on.

I make no predictions but I'd expect some heavy lobbying from the educational institutions on this one.
Every year, universities generate over £73 billion for the UK economy – £3.7bn of which is generated by students from EU countries | EU referendum: An open letter to UK voters from leaders of 103 British universities
After the Exit has been agreed, it's reasonable to expect that all EU nationals wanting to come to the UK to study art will be subject to the same terms and conditions as nationals from any other country.

If visas are required in future, the type of visa will depend on what sort of study is involved. Links below are to Visa Information from the Government.

There are currently two types of Student Visas for people who want to come to the UK for study purposes
  • Tier 4 (General) visa
  • Short-term Study visa
Somebody coming as an academic visitor needs a You need a Standard Visitor visa.

Tier 4 Visa


At present you can apply for a Tier 4 (General) Visa if you are a non-EU national.  There are various conditions.  They key conditions are that:
  • there is a limit on the amount of time you can spend in the UK on this type of visa.
  • it only relates to educational organisations which hold a Tier 4 licence - which means if they lose their licence you lose your visa unless you can find another sponsor
This is for students aged 16 years or over who are coming to UAL to study:
  • A full-time degree or degree-level course (e.g. BA, MA, PhD);
  • A further education course (e.g. Foundation Diploma);
  • A pre-sessional course;
  • An English language course (at level B2 in the Common European Framework of Reference for Languages).

Short-term Study Visa


Short term Study Visas are for people wanting to do a short course of study in the UK
What you can and can’t do
You can:
  • do a short course of study in the UK, such as an English language course or a training course
  • do a short period of research as part of a degree course if you are studying abroad
You can’t:
  • study at a state school
  • work (including on a work placement or work experience) or carry out any business
  • extend this visa
  • bring family members (‘dependants’) with you - they must apply separately
  • get public funds

Three year courses and a two year exit period


I expect higher education establishments will be in a quandary about offering places for the next academic year for three year courses as these will extend beyond the two years allocated for completely exit negotiations.

My guess - and I emphasise this is a guess - is that
  • they will lobby hard for some transitional arrangements for students who 
    • started their academic studies this year - but will not complete in the two years after Article 50 is invoked.
    • start to study after the vote and before the Exit.
  • they will provide lots of information and advice to students as to the requirements for visas if the UK exits the EU within the 2 year period or by the end of it.  
Bear in mind that it very much appears that in relation to being a student in the UK the worst it can be (on the basis of current arrangements) is exactly the same as it is for other non-EU nationals at present.


Exchange arrangements

There may also be issues in relation to any exchange arrangements with academic institutions in the EU - and vice versa.

I think this is very much a 'wait and see'. The chances are is it might require more paperwork.

After your study course finishes


The major difference will come after EU or UK students have finished your studies. 

If freedom of movement between EU and the UK becomes restricted then there will be:

  • no right to remain after your studies, 
  • no right to work and 
  • no right to live in the UK. 
All of these activities will require a visa.

Although nobody can be certain, it's very likely that a work visa will only be issued according to the points-based system which currently relates to non-EU nationals. Visas are only issued to specific classes of people.

Tier 1 Exceptional Talent Visa


International Art Competitions
may become more important
One class is "Exceptional Talent". This is the full guidance on UK Visas and Immigration's policy on visa applications under Tier 1 (Exceptional Talent) - Tier 1 (Exceptional Talent) policy guidance PDF, 559KB, 49 pages.

Interestingly I was asked last year to provide an endorsement for an artist who wanted to apply under this class (after I had highlighted the individual on this blog). I referred him on to an organisation I thought might well provide an endorsement with more weight.

It does however highlight how important international art competitions and art prizes might become in indicating exceptional talent.

What it means for Art Schools 


If they haven't done so already, it's very likely that all art schools and other establishments (of whatever size) offering study courses will need to become accredited as an institution which is "recognised" as a "proper" educational organisation.

(There's been all sorts of shocking examples of establishments masquerading as study centres in the past - hence the rigour re becoming accredited and the removal of Tier 4 accreditation on occasion).

Specifically that means that
  • art schools in this country need to meet visa requirements for students (if they don't already)
  • art schools in the EU will need to do likewise re whatever visa arrangements they have in place for non-EU students. (Anybody know what those are?)