Do i pay tax

Mister_Tony

Good Evening
I wonder if anybody cound advise me on this scenario:

I want to start a project and lots of people (worldwide) want to invest money as a gift to start it. Would I have to pay tax on this money and because it is a large amount of money I assume I would have to register for vat. This project might not be profit making and contributions might continue when its up and running.

Sorry if this is vague but I just need an idea of what would happen. If you need more info then I will supply it

CLAPTON

'invest as a gift'

makes no sense

either it is a gift and so doesn't need repaying or interest or profit or dividend

or it is an investment with an expectation of reward


however there is no tax on gifts or no tax liability on you if some-one 'invests ' in a project.

VAT has nothing to do with gifts or investment as such

maybe see an accountant

John_Pierpoint

Is this a charity?
See rules for qualify as and running a charity?

What does the donor/investor get in return for their payment?

MrNotty

Hi Tony - are you talking about crowdfunding a project you are running as an individual in return for non monetary rewards?

If so, and I have asked a HMRC technician, these are gifts. If they do not take you over the Inheritance tax threshold then they are non taxable. Obviously check your personal situation with the tax office.

If it is for a charity or business then the gifts/ donations would be accounted through your books.

If it is for equity then there are legal regulations that ensures compliance with FSA regulations.

Do post more.