Legal Hotspots for Interior Designers

Ten days ago we welcomed a commercial lawyer into Hothouse to talk to us about terms and conditions. Since then conversations with interior designers on the subject have been animated, with many sharing their experiences and the surprising reach of legal considerations into almost all aspects of interior design practice. 

No blog about legal matters would be complete without a disclaimer so here it is: I am not a lawyer, and nothing in this article constitutes legal advice.

The notes below are shared to highlight areas of residential interior design practice that merit professional legal oversight. Every design business should seek its own qualified legal guidance before acting on any of the issues raised.

1. Why legal clarity matters

As creative professionals, we tend to focus on the visual and emotional dimensions of our work. Yet the legal framework surrounding design practice in the UK can have far-reaching consequences for your business - affecting everything from who your true “client” is, to what happens when a project changes shape partway through.

The key message from experienced interior designers is simple: every design studio needs a lawyer’s eyes across its paperwork. Even the most sophisticated practice templates can contain contradictions, loopholes, or untested assumptions that could prove costly later.

2. Contracts: what they are, and why the small print matters

At law, a contract requires three elements:

• An offer (for example, your fee proposal or quotation),
• Acceptance (your client’s signature or written confirmation), and
• Consideration (the payment or value exchanged).

When these exist, a binding agreement may already be in place - even before your formal Terms & Conditions (T&Cs) are signed.

Conflicts between documents

Many, but not all, interior designers employ a lawyer to draft their terms and conditions, and that's where they stop. They don't consider the language they use in other important documents, for example the fee proposal, and how this might actually contradict or create conflict with your T&Cs. 

The moral: your T&Cs, proposal, and any ancillary documents must speak with one voice. Periodically review them - with your lawyer - to ensure they are internally consistent and legally current.

3. Walking clients through your T&Cs

A contract is not just paperwork; it’s a communication tool.

As I've discussed before in this blog, as part of full-service interior design, your fee proposal should be presented during an in-person meeting with your client (it's no longer good enough to send a copy and wait passively for feedback). During this meeting, you should also run through key clauses in their T&Cs. Don't read out the whole thing, but do take time to walk your client through, for example:

• Payment terms and schedules
• Cancellation and break clauses
• Intellectual property and promotional rights (e.g., use of project imagery)
• Timings and dependencies (NB timings should be indicative, do not commit contractually to specified project duration). 

This not only reduces future misunderstanding but demonstrates professionalism and transparency.

4. Bespoke Terms & Conditions: cost and renewal

Creating T&Cs from scratch, customised to the specific needs of your business, typically costs around £2,000. A review of existing documents is less expensive and should be done every few years to maintain compliance as legislation evolves.

Core areas your lawyer will cover include:

• Operating hours and method of supply
• Intellectual property ownership and usage
• The designer’s right to publish or promote completed work
• Treatment of bespoke or made-to-order items
• Payment triggers and late payment remedies
• Mutual break clauses

5. Residential vs. commercial: where the line blurs

Many designers in our group work in private homes, but the legal classification of a project can shift if, for example, the client runs a business from the property, employs live-in staff, or uses a business account to pay for residential work.

Why it matters:

• Duty of care: Health and safety obligations may differ for workplaces compared to private residences, potentially invoking Construction (Design and Management) Regulations 2015 (CDM), and requiring the specification of commercial grade materials…yes, in your client’s home.
• Cancellation rights: Consumer contracts (under the Consumer Contracts Regulations 2013) apply only when dealing with a private individual, not a company. If the client’s business pays the invoice - even for their home - the arrangement could legally be B2B (business to business), and statutory cooling-off rights may not apply.
• VAT recovery: If the client seeks to reclaim VAT through their business, designers should ensure they are not inadvertently facilitating tax evasion. Seek advice if payment is requested from a company account for work done in a private residence.

6. Anti-Money-Laundering (AML) and Know Your Client (KYC)

Designers can fall within the Money Laundering Regulations 2017 if they act as high-value dealers (accepting or arranging payments in cash of €10,000 or more) or as art market participants (involved in art transactions above that threshold).

Even outside those formal categories, it’s prudent to:

• Verify the identity of clients before accepting substantial funds;
• Be alert to unusual payment requests (such as third-party transfers or offshore accounts), see point 12 below;
• Avoid accepting large cash payments; and
• Keep clear, auditable financial records.

Where in doubt, speak to your accountant or a solicitor with AML experience.

7. Data, privacy, and digital compliance

If your studio stores client details, images, or supplier data, you must comply with the UK GDPR and Data Protection Act 2018. This could be further complicated by your studio’s use of AI which might involve uploading client data to third party sites, or recording client meetings (with explicit permission granted in advance).

That means:

• Having a clear Privacy Policy;
• Storing data securely and only for as long as necessary;
• Obtaining explicit consent for marketing communications, for making recordings, for use of data as part of AI policies;
• Taking care when transferring or backing up files (especially overseas).

Interior designers' use of AI came up during a recent BIID webinar - it seems likely that you’ll need a statement/policy (or, perhaps new clauses in your privacy policy) about your use of AI and its effect on your clients privacy, and on use and storage of their data.

8. Non-Disclosure Agreements (NDAs)

Some clients request NDAs, particularly in the case of high-profile or celebrity projects. Having your own pre-approved NDA template can save repeated legal fees. So, when your clients request one, you use your pre-prepared one, rather than incurring the cost of having to review and potentially amend theirs. Remember that an NDA cannot lawfully prevent whistle-blowing, disclosure of criminal activity, or reporting of unsafe conditions.

9. Bribery, gifts, and incentives

Under the Bribery Act 2010, it is an offence to give, offer, or receive a bribe - or to fail to prevent bribery by someone acting on your behalf.

Examples might include:

• Supplier kickbacks or undisclosed referral commissions;
• Lavish hospitality offered to secure a contract.

A simple anti-bribery policy and transparent disclosure of commissions can protect your business. This legislation impacts your procurement and supply policies: whether you act as agent or as principal?

So, if you introduce your client to a kitchen company and receive a commission as a result, you must inform them that this forms part of your remuneration. Unless your client is made aware of and agrees to this arrangement, the payment isn’t a commission at all — it’s effectively your client’s discount, their money.

10. Intellectual Property (IP) and image rights

Your drawings, mood boards, and design concepts are protected automatically under the Copyright, Designs and Patents Act 1988, and the visual appearance of unique products may also qualify for unregistered or registered design rights.

When it comes to photographing and publishing your projects, include a clause granting the licence to use project images for marketing and editorial purposes, while respecting your client’s privacy.

For any press or magazine coverage, you must obtain written permission for use of photographs and ensure any link or reproduction is properly licensed. Negotiate this when discussing the publication of a project. 

As discussed during the styling webinar with Sam Grigg recently, if works of art appear in photos of your client’s interiors, you must have permission from the artist to use the image of their work as part of your promotional material.

11. Health & Safety and CDM Regulations

If the project involves contractors, structural work, or multiple trades, you may have duties under the Construction (Design and Management) Regulations 2015. Even small residential projects can trigger these obligations if significant construction activity is involved.

Designers should:

• Identify and communicate risks in design;
• Coordinate with contractors and the principal designer;
• Maintain proper records of decisions affecting health and safety.

I plan to write something on CDM soon, watch this space.

12. Tax and payment ethics

Designers are sometimes asked to accept “creative” payment arrangements. It is a criminal offence to facilitate tax evasion under the Criminal Finances Act 2017.

If a client suggests payment methods that seem irregular - for instance, routing funds through a third party or requesting separate invoicing to obscure VAT - stop and seek professional advice immediately, speak to your accountant or your lawyer. 

13. Keeping your business legally fit

No designer needs to become a lawyer. But every studio benefits from understanding where legal thinking intersects with design thinking:

 • Periodic review of your contracts and templates

 • Transparent communication with clients

 • Documented, compliant systems for data, finance, and procurement

The core message of this meeting: good contracts and clear processes are the scaffolding that protect your creativity.

 Final Word

Understanding the legal framework around your creative work isn’t about red tape; it’s about protecting your time, reputation, and profit.

Your relationship with your lawyer isn't "one and done" - transactional, and over once you pay for and receive a new terms and conditions document. Your relationship with your lawyer is like your relationship with your accountant - it gives you access to a specialist professional, someone who can step in and advise before a crisis becomes a calamity. 

If any of the areas above sound unfamiliar, or if you haven't previously considered that these matters affect you, that’s precisely the moment to call a lawyer - not because you’re in trouble, but because by being proactive you could be averting serious future difficulties.