UK Closing a company in UK after crowdfunding campaign

[Alberto Iglesi]

Hi!

Last year I've opened a company in UK (ltd) just for the purpose of making a Kickstarter campaign for a short movie. The campaign was a success, and finished around £10000. Now I want to close this company, because I don't need it anymore (I would probably produce this movie in a company that I have registered in my country), and I have several questions:

1. The campaign was registered for a friend of mine (Kickstarter requires someone from UK to be in a team) and he received the money to his bank account. So the questions is - who had income - company, or him?
2. All the money will be spent to cover costs of the production, but the income was in 2015, and all the costs will be in 2016 - is that a problem?
3. If I close a company now - what will happen with that money?
4. Is there any way to 'turn off' the company without closing it completely? So I would be able to quickly re-open it again when I'll need it?

AI

 

[cooper1210]

1) Depends on the contract with Kickstarter, if the contract was with the company, then it's the companies money - it would just mean that your friend "owes" the £10,000 to the company (it's not his cash).
2) The money received is counted as taxable, and the company would have to pay tax on such, that being said, it sounds like you will make a loss in 2016 which you can "carry back" and get the tax back
3) Depends who the shareholders are, strictly speaking it should go to them. But this seems the wrong thing to do, the kickstarted project I imagine was created for the Uk company, not for another company or party. I can't imagine the original donators would be happy
4) A company can be kept dormant, simply by filing an annual return and completing dormant accounts form (https://www.gov.uk/government/publications/file-your-dormant-accounts-aa02). You should also let HMRC know about the dormant period

 

[Debora Rodrigues]

Hello Dears,

I recently acquired a client that will develop a crowdfunding campaign for electronic device and I would like to obtain valid information about the invoicing & billing aspect of this project. How to record the income ( as liability or not ), expenses, distributions and other items. Thanks