CIC Association

Serving Community Enterprise


Accounts Group

For any accounting related queries, including accounts software package questions, grants and trading income treatment, HMRC or Companies House queries/issues, tax reliefs for CICs, links to useful finance information etc

Members: 172
Latest Activity: Jul 5

Discussion Forum


HelloCan anyone point me in the direction of a worked example of a Partial Exemption calculation for VAT that I can even understand?  Even our accountants seem to be having trouble explaining to me…Continue

Started by Rachel Gardiner-Hill. Last reply by Mahmood Reza May 30.

Transfer of assets between Unincorporated association and CIC. 3 Replies

Hi,We have been running as an unincorporated association for just over 2 years. We have just this week incorporated as a CIC. We have quite a lot of equipment that we want to transfer to the CIC.…Continue

Started by Hannah. Last reply by Mahmood Reza Mar 17.

Companies House online returns filing service for CICs. 2 Replies

Hi all, I'm sure this will be of interest to everyone.Companies House are trialing a new service whereby CICs can file their accounts online. This will save accountants fees and hopefully the final…Continue

Started by Adam freeman. Last reply by Mahmood Reza Mar 7.

Annual account 2 Replies

Hi all, I'm new to this forum and hope you can help.I need to prepare some end of year accounts so that I can apply for some funding before the accountant does the full end of year thing in…Continue

Started by Annette Eatock. Last reply by Mahmood Reza Mar 7.

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Comment by John Mulkerrin on April 25, 2019 at 14:55

Thanks Mahmood.

So, assuming the donation is ok and doesnt contravene the regs, is the donation 100% deductible?

For example, a CIC gives a donation to an approved enterprise agency of £5000, will they get a £5k relief against their tax bill?

Comment by Mahmood Reza on April 25, 2019 at 14:46

Hi John,

Donations can be made to a local enterprise organisation or an urban regeneration company. These donations will be allowable tax deductions (subject to the anti-avoidance provisions).

A ‘local enterprise organisation’ is:

  1. a local enterprise agency;
  2. a training and enterprise council;
  3. a Scottish local enterprise company;
  4. a business link organisation.

The anti-avoidance measures refer to where the contributor/donor (or someone connected with them) receives, or is entitled to receive, a disqualifying benefit (basically a disallowed tax deduction) in connection with the making of the contribution.



Comment by John Mulkerrin on April 25, 2019 at 14:08

Hi All

Allowable relief for contributions to an approved enterprise agency, does anyone have a good working knowledge? Section 84 Income Tax (Trading and Other Income) Act 2005

Is it 100% deductible?

Comment by Genny Jones on April 21, 2019 at 6:45

I would also recommend Xero for the tracking of funds,  you can create various layouts, you can import the budget from your spreadsheet into xero and great reporting. Also great that you can have levels of approval.

Comment by Mahmood Reza on April 17, 2019 at 23:58

Hi Michelle

For record keeping, efficiency, Mgt info, tracking and reporting etc I'd recommend Xero.  It's  system we use for a nunber of our clients. Re payroll, that depends what experience you, or someone in your team has in running payroll &'operating PAYE.

Happy to have a more detailed chat & help you with any set ups, and send more info etc.  As accredited Xero advusirs we can provide a discount off normal Xero price, and discuss payroll options.

Hooe this helps 



Comment by Michelle Ford on April 17, 2019 at 21:40


We are a new CIC and I just wondered what accounting/Payroll package may be best for us to start (upto 10 employees)

Any advice gratefully accepted



Comment by Rachel Gardiner-Hill on April 10, 2019 at 21:48

It does many thanks.


Comment by Mahmood Reza on April 10, 2019 at 21:21
Hi Rachel
Depends on what you mean by problems. As long as it’s accounted for, due diligence carried re the source of the donations, and no undue influence on running of CIC by donors. then all should be fine. If a donation Corp tax is unlikely to apply, no gift aid claim by donor (unless you’re a Charity).
Hope this helps
Comment by Rachel Gardiner-Hill on April 10, 2019 at 20:40


We are lucky enough to have a philanthropic individual who would like to donate monies yearly to our CIC over the next four years.  Are there are problems associated with CIC's receiving donations per se?

Comment by Mahmood Reza on March 8, 2019 at 9:15


Hi Rachel,

What's the nature and information that you are after.  Based on the latter bit of your request, and as starter for 10  I've uploaded an article I wrote on Paying Volunteers  and HMRC - link at the top of the page.




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