Im now an Ltd, formed the day before receiving the 110k fundsEssentially, lots of people "pledge" their funds, then months in advance, they receive goods in exchange (what goods they have chosen for their "pledge"). It could been seen as a sort of "pre-order" system where people put their faith in the creator (me) and with their funds the creator brings the project to life and delivers their goods.
Crowdfunding only started about 5 years ago and its become quite popular in the last 2 years. All the VAT law im reading seems to be all from 1994..I can paste you in the correspondance from HMRC so far here. I have another week or so to appeal the decision if i have a leg to stand on and it is worth doing so.
Sure, thanks for the help Tony :)
Hi Tony,Thanks for the advice and answer. I feared it may be the case that the law doesnt really take this kind of new situation into account, where a years revenue arrives in one day.Ill do you mention, appeal, then see about a tribunal (i just bought a new suit anyway...may as well air it out!). I guess if i register i can always look at the possibility of a VAT flat rate scheme later on, which will save a big chunk. Best regards
Thanks and good luck.