/ BEST PRACTISE
Contracts
There are so many styles of contracts, some contracts if you are working with a gallery as an artist are very informal and trust based. If you are signing a contract, make sure to read it through thoroughly as it is legally binding.
CONTRACT CHECKLIST :
There are so many styles of contracts, some contracts if you are working with a gallery as an artist are very informal and trust based. If you are signing a contract, make sure to read it through thoroughly as it is legally binding.
- The work you will be getting paid to do and how you will be getting paid
- What you are expected to do — services that you will provide
- Where you will deliver these services e.g. at home or a different location
- How much you will be paid, and when to invoice for this (weekly, monthly, or after certain tasks or projects have been completed)
- How many hours you’ll work per day / week / month — this could be a range e.g. up to 25 hours per week — and when you’ll work them, e.g. on weekdays between 9am to 5pm
- How long the contract will last — also called its term — and whether it can be renewed
- What expenses or allowances you’ll be paid, e.g. will you be reimbursed if you use your own car or your own tools, will you be reimbursed for food and accommodation if you travel?
- Who your client contact person will be
- Whether either party has the right to terminate the contract
- How disputes will be resolved — when you’re a contractor you can’t raise a personal grievance if you and a client you work for have a disagreement
- Who will own any intellectual property that you may have developed as part of the contract
Copyright Licensing
Copyright Licensing New Zealand (CLNZ) is a not-for-profit collective set up to support visual artists by overseeing the collection of fees for the use of an artist’s image.
Signing up to CLNZ and spreading the word to other artists to do the same will help the visual arts to collectivise and make change, gaining a similar model of support to what APRA offers the music industry. This set up promotes the value of artists and their work, encouraging respect and protection of intellectual property.
Sign up with CLNZ here:
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The Nuts and Bolts
of Copyright
Have a read of Karen Workman’s concise overview with regards to copyright in Aotearoa — before it gets removed ; )
Link here:
Dealing with
Dealers
Dealers
Have a read of Tim Melville’s
‘Dealing with Dealers’ document.
‘Dealing with Dealers’ document.
Tim has kindly permitted for us
to share it with you, link below.
Tax and Gst
If you are an artist working individually with or without a dealer the best way to manage your tax is through being a sole trader. Sole traders are people who work for themselves, contract out their services or have a small business where they are the sole member.
You do not have to register with a government agency to become a sole trader and unless you make over $60,000 per year you do not need to be GST registered.
Record keeping is key and will allow you to claim back on business expenses and lower the amount of tax you have to pay at the end of each year. Keep GST receipts and a book or leger of what you buy for your business. For example, if you work from home or use the internet for your work a percentage of rent and bills can be claimed back as business expense.
As a sole trader you are responsible for paying your own tax and ACC levy (this is a small annual amount that ACC sends you an invoice for that is determined by the type of business you run). Usually sole traders pay 30% tax so it is helpful to put this aside with each payment you receive throughout the year. At the end of the financial year (31st March) fill out an Individual Tax Return (IR3) through Inland Revenue.
Record keeping is key and will allow you to claim back on business expenses and lower the amount of tax you have to pay at the end of each year. Keep GST receipts and a book or leger of what you buy for your business. For example, if you work from home or use the internet for your work a percentage of rent and bills can be claimed back as business expense.
As a sole trader you are responsible for paying your own tax and ACC levy (this is a small annual amount that ACC sends you an invoice for that is determined by the type of business you run). Usually sole traders pay 30% tax so it is helpful to put this aside with each payment you receive throughout the year. At the end of the financial year (31st March) fill out an Individual Tax Return (IR3) through Inland Revenue.
Ways to reduce the amount
of tax that you have to pay:
Claim expenses that you have spent on your business (this is where book keeping comes in handy). Make sure you keep all the receipts too!
Accounting software might help you manage your record keeping and keep track of tax. Examples of these are Xero or Henry which allow everything to be stored online. Although you do still need to keep receipts and records for seven years, in case Inland Revenue audits you.
What you need to know
if you have multiple jobs:
Making, exhibiting, and selling art doesn’t always cover the bills, so a lot of artists need multiple jobs as a way to get buy. This falls under freelance or gig work.
You need to pay tax on all of your jobs, and fill out an IR330C for each source of income at the end of the tax year. You are responsible for paying your tax on all sources of income as well as ACC levies, KiwiSaver, student loan, and child support (if these apply).
Support for Arts Makers
There may be times in your creative career where you come across conflict or dispute, perhaps someone uses an image of your work in a way you are not comfortable with, or there is some wrong-doings occuring at your place of work but you are worried about exposing it. Alternatively you may find the need for some career mentoring or PR at some point in your practice.
Listed here are some people, and links, that can help support you in these areas.
Listed here are some people, and links, that can help support you in these areas.
