Company client has received Crowdfunding income of around £15,000 to assist with the business start up. The company is not a charity.
The sums received have been gifts, none of the donors have been given equity and none of the sums are loans.
Some of the donors have received small gifts. These have been of the type of products that the client is selling so could in effect be marketing/advertising costs I assume?
The question is how should the Crowdfunding income be reported in the Company's accounts? Is this simply taxable income?
Does it depend on what the money has specifically been spent on? E.g. if some was identifiably used to purchase capital assets, does the Crowdfunding income reduce the capital cost of the asset instead?
There is a lot of info out there, none of it categorical, hence this question. If anyone can help it would be hugely appreciated.