More and more people are choosing to get inked as tattooing has grown in popularity in recent years. However, a lot of people are ignorant of tattooing’s tax repercussions. The tax ramifications of tattooing will be discussed in this article along with other pertinent issues.
First and foremost, it’s crucial to realize that getting tattoos is a form of self-employment. This implies that if you work as a tattoo artist, you are in charge of handling your own tax obligations. You must file an annual Self Assessment tax return and register with HM Revenue and Customs (HMRC) as a self-employed individual. You will need to pay income tax and National Insurance contributions on your profits, and this will contain information about your revenue and expenses.
You must also register your business with HMRC and pay Corporation Tax on your profits if you own a tattoo parlor and hire other tattoo artists. On top of the salaries you pay your employees, you must additionally pay employer national insurance contributions.
The two primary insurance categories that are pertinent to tattooing are personal liability insurance and public liability insurance. You are protected by personal liability insurance from any mishaps or injuries sustained during the tattooing procedure, including as allergic reactions or injuries from needle sticks. On the other hand, public liability insurance protects you from any mishaps or injuries that might happen to customers of your tattoo parlor.
Public liability insurance is mandated by law for all enterprises in the UK that interact with the general public. This contains places that tattoo. Your business’s public liability insurance will protect you from any compensation demands made by members of the public who have been hurt or harmed as a result of your operations.
It’s also important to remember that unless you have a specific license, tattooing at home is prohibited in the UK. This is due to the fact that getting a tattoo includes a risk of infection and can be deadly if done in an unhygienic setting. If you are found tattooing illegally at home, you risk being fined or possibly imprisoned.
Last but not least, the cost of a tattoo license varies in the UK based on the local government. The price typically ranges from £200 to £500 annually. This permit must be renewed yearly in order to run a tattoo parlor.
In conclusion, getting a tattoo has a variety of legal and tax repercussions. Tattoo artists are required to file an annual Self Assessment tax return, register as self-employed, and pay income tax and National Insurance contributions. Additionally, business owners are required to register their company with HMRC, pay Corporation Tax, and contribute to Employer’s National Insurance. A license to run a tattoo parlor and personal and public liability insurance are also essential. Tattoo artists and business owners may make sure they are functioning lawfully and can prevent any potential penalties or legal concerns by learning these rules.