Kickstarter and Crowd funding explained

[EtchedPixels]

Form a limited company before starting so
1: Funds raised go into a company bank account and not your personal account where you will be liable to pay income tax on it

You pay income tax on profit as a sole trader. Profit and small model railway projects don't tend to mix. Just be sure your expenses are tracked properly.

2: If the unfortunate happens and final products cannot be delivered you are not personally liable for the money

Don't bet on it. You won't be able to raise capital without guaranteeing it personally, suppliers and banks are not that dumb Plus if you are reckless or at fault in any way then it won't protect you very much.

Budget for paying VAT.

On a small model railway business... bwwahahahah 

There's an interesting article at http://www.kingstonsmith.co.uk/resource/publication/articles/crowd-funding-an-accountant-s-view

Accountants like limited companies, they keep accountants in business 

Alan

[georgehgv]

Have any/many of you guys/girls signed up to register your interest in this Pendolino project?

[Karhedron]

Have any/many of you guys/girls signed up to register your interest in this Pendolino project?

Quite a few I believe (myself included).

However it is just expressions of interest at this stage, I don't think the Kickstarter has launched yet.