Kickstarter and the Tax Bill
If you’re planning on raising capital for your project or startup you might have considered creating a Kickstarter campaign; it’s an easy way to hit the jackpot and get started, right? But what about the tax implications of crowdfundng?
Crowdfunding is not comparable to a lottery win; it isn’t a tax free jackpot or a pot of gold exempt from the normal business, legal, and financial regulations. Rather, crowdfunding and Kickstarter campaigns should be viewed in the same way as any other type of income; you will be liable for tax and you should seek financial advice (read Kickstarter’s official advice here).
For example, a startup sending their backers/contributors some sort of reward, or goodies in return for their backing, will more than likely be viewed as a traditional business selling goods and services, and therefore the usual rules on tax will apply.
We would always encourage you to try new things and test your ideas, and Kickstarter is a great platform for raising money for your project or startup; that being said, if you are going to generate your income in this way, be prepared to factor in the tax bill which will inevitably arrive at your door. Take financial advice, be clued up on the reality of raising a “quick buck” and work out a realistic financial plan.
Read more here.
Six winners. A share of £1 million prizes. Pitch to Richard Branson. It’s “the ride of a lifetime”.
Over 14 weeks, the #VOOM 2016 competition will include a huge public vote, a 29 hour pitchathon and a series of competitive face to face workshops. There’s also a big final featuring Richard Branson himself.
Entries are now open and there are two categories you can choose to enter into:
Startup – This category is for fresh and exciting businesses that are in the early stages – you’ve either not started trading or just begun. If your business has potential, enter now.
Grow – This category is for businesses with revenue that are looking to grow. If you know that your business works, and works well, pitch it to #VOOM.
The competition also works hand in hand with Crowdfunder; alongside your entry, you’ll need to create and run a crowdfunding campaign to secure public support and raise money for your idea or venture.
Prizes include; £50,000, all expenses paid marketing campaign, social media and PR support from Virgin Media Business and business mentoring for VOOM and Virgin. (Click here to see the full list)
Applications close on Tuesday 10th May.
Click here to find out more on how it works and apply.
How to create a crowd funding project – tips for selling your story with a great video
If you want to build momentum with a crowdfunding campaign, creating a video “pitch” will enable you to tell your story and share your idea, inspiration and vision on a face to face level.
Whilst the written word can be misconstrued and requires the reader to concentrate and fully engage with your text, a clever video gives your campaign a more human aspect, allowing your passion and aims to come through more naturally. Long essay-like documents can turn off potential investors, whilst a crowdfunding video is engaging and fun as well as harder to ignore.
So, what are the top tips for a successful crowdfunding video?
Have a story to tell – you’re human; we want to know about your experiences, networks and interesting facts. Allow your potential crowdfunders to get to know you a little bit, and they will feel much more strongly about helping you to reach your goal.
Inspire them – make them feel special, make your story and ideas seem worthwhile and the rest will follow.
Be clear and concise – don’t be too me, me, me – nobody wants to hear your whole life story from start to finish! Remember, less is more.
Read more here.