CIC Association

Serving Community Enterprise

Hi,

This is my first time experiencing setting up a business and I have just registered my company 'Burwell Skate School CIC', it is limited by guarantee. I am pretty confused about a majority of things and was wondering if anyone could please help me out?

I have registered the business as actively trading from the 5th of Febuary. I set the date to which the company intends to prepare it's accounts to 30th June 2017, however, after doing some reading I am thinking this was the wrong choice and should've chosen the end of the year?

I am also struggling with everything tax related.. Here are some questions I have..
How much corporation tax will I pay? Is it 20% on everything earned, or just the profits after pay? When will the corporation tax be due?

How do I pay myself? I am the director of the company, should I be self employed or register for a PAYE number? If so, how does this relate into me paying tax? Also how much can I pay myself? I am currently using 10% of all earnings to put back into the business and also donate to the fundraising of a new skatepark in the community. The rest is used for salaries.

I am currently hiring one member of staff who is self employed, I will be paying him at the end of each month when he invoices me, is this ok?

I currently do not have an accountant, would you advise getting one? The business is still small and currently has a turnover of around £8,000, I am thinking it may be wise due to my lack of knowledge.

I hope this all makes sense, and I look forward to hearing your advice.

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Replies to This Discussion

Hi Max

Definitely get someone with experience in this area involved, your accounts wont be much so you could try and attract some pro-bono help from a local accountant (and offer some positive PR) or have a look on accounts group

Consider asking someone to become a non executive Director or mentor etc etc, bound to be a few accountants in your wider network that would love to help

Best of luck

John

Hi Max,

Yes, you do need some professional accountancy advice, all of your questions are very sensible and will be addressed by the right person.  I have several CIC clients in your position and can offer the correct, timely advice to assist.  Please feel free to contact me, but unfortunately as I am based in Doncaster it isn't conducive for a meeting.  As John says, I am sure there will be accountants in your area able to assist, but please ensure they have CIC experience.

With very best wishes for your future venture,

Jane

The accepted company tax/fiscal year runs from 1st April to 31st March, corporation tax is due no later than 9 months after the end of your Chargeable Accounting Period (CAP) the tax return (CT600) is required no later than 12 months after the end of the CAP, keep in mind a trading profit is not a taxable profit (seek advice) any salary you draw from the company will need to be reported on a self assessment tax return.

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