Chris Jones talks about some of the tax implications of running a crowdfunding campaign in the UK. Though laws in other countries may differ – almost all tax collecting agencies will see crowdfunding funds as a source of income – as always check with a legal professional who knows your local laws.
So you run a crowdfunding campaign, get some cash in to make your film… only you don’t declare it as income. And three years later HMRC slam you for tax evasion. Slaps on the wrist, interest charges, fines both small and big… and it’s even possible there could be a custodial sentence… Seriously, if they view what you have done as pernicious fraud, and the sums are big enough, they may seek to send you to prison to wake the rest of us to the fat that CROWDFUNDING IS THE SAME AS SELLING AND THEREFORE SEEN AS TAXABLE INCOME BY HMRC.
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