Crowdfunding

Crowdfunding

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Hi

I have a client who last year used the web to raise money through crowdfunding to complete a documentary film for a good cause. The crowd were offered various things for this money from a thank you to being one of the first to see the film. Im now not sure how to show this in the accounts. It has to go in the profit and loss account, Im guessing I will have all the costs so would the income be taxable? My gut says yes and you hope it would not amount to much because of all the costs? Any thoughts would be great as I think this will come up more and more.

Thanks

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By WhichTyler
25th Jul 2013 12:55

and VAT...

Depending on the nature of the incentive/reward offered (cinema tickets in this case), the cash received could be seen as VATable, and so VAT may have to be deducted. this could be much more significant than CT for non-commercial projects

 

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By victoria.cardens
25th Jul 2013 17:17

thanks. I didnt even think about that. They arent vat registered at the moment but this would have put them over.

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