Memorandum submitted by Laura Hunter
Could I draw your attention to the following
problems which seriously impede working artists trying to earn
and sustain a living from their practice within the commercial
gallery system in the UK.
Many artists sell work through galleries as
"agents" that charge high rates of commission—upwards
of 40-50% plus VAT on commission.
Due to this arrangement, artists are unfairly
liable to account for tax and VAT purposes on the full gallery
selling price turnover before deduction of commission. The artist
must register for VAT when gallery sales turnover reaches £58,000,
even though they receive half or less back from the gallery from
the sale. A treadmill is set in motion at that vulnerable point
when the artist's career is taking off.
The artist also loses clientele as price of
work must increase by 17.5%. True artistic development is seriously
hampered in the process of trying to produce work to sustain sales
and accommodate VAT.
After deduction of gallery commission, studio
and business costs, the artist will be fortunate if they have
a modest salary of £16,000 before tax, NI 2+4.
A fairer, more sustainable system, which would
also result in the production of better work, would be if the
artist was instead liable to account on their artist's price turnover
rather than on the gallery selling price turnover.
I would also like to point out that many artists
subsist on poverty pay and this issue must also be addressed.
In Scotland, £5,000-£8,000 is the average salary.
The droite de suite is welcome if at least artists
will now receive details of their clients in a formal notice of
sale which is not common practice at present.
Overall, the introduction of "industry-standards":
tax incentives and reforms would be in order.
15 February 2005
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