CIC Association

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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: 152
Latest Activity: May 17

Discussion Forum

Minimising Corporation Tax - again! their grant in the first 3 Replies

Hello allMy pro-bono CIC client incurred capital spend in their first year when all income was grant funded. They didn't spend all the grant so I used your helpful tip elsewhere to take only the…Continue

Tags: Capital Allowances, CIC, CT600

Started by Paul Johnson. Last reply by Paul Johnson May 17.

Pay, national insurance tax etc. 1 Reply

Really new to all of this so sorry if this all seems obvious. How do i set up paying the directors and how do i set wages. Is it better to set wages low for the first year and the raise them or have…Continue

Started by Brendan. Last reply by Alastair Irvine May 13.

Are Grants Taxable? Am I Trading? 3 Replies

not necessarily. Its complex. Some general principles:- A Grant will start out life as being a taxable receipt of a CIC. Unless you can think of a clever wheeze it will remain taxable. This is the…Continue

Tags: grants, trading, tax

Started by Alastair Irvine. Last reply by Paul Johnson May 13.

Donations and turnover 4 Replies

Canvassing for opinion - aware that donations to CIC's are liable to corporation tax but would a donation to a CIC be subject to VAT.  Opinion given to us suggests that is counted as such but I…Continue

Started by Rachel Gardiner-Hill. Last reply by Rachel Gardiner-Hill Mar 16.

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Comment by Heidi Fisher on June 23, 2013 at 15:52

Hi, if you have an understanding of accounting then it is possible to prepare your own accounts for Companies House, and file the corporation tax return with HMRC yourself.  However, in most cases people don't have the accounting knowledge, or the time to do this, as they are busy running their CIC.

Whilst I would like to say that accountants and/or accounts systems are free or cheap, that is not the case.  When you decide to become a CIC you need to consider the costs of preparing annual accounts, corporation tax returns and operating payroll as things you will need to generate money to cover, as well as personal tax returns for Directors if they are receiving a wage or income as self employed individuals.  

There are free spreadsheet based systems for recording your income/expenditure but these figures need transferring into the correct format to produce your Annual Accounts.  If you don't want to use spreadsheets then Kashflow, Quickbooks and Zero are all suitable alternatives.  But like spreadsheets these only do your book-keeping and produce management accounts, not the production of your year end accounts or tax return.

Comment by PADOYO CIC on June 23, 2013 at 13:31

Do you have an accounting service success or found the ultimate DIY tax software that does it all. AS a new CIC one of the underpinning philosophical is to create as much financial support for our communities by   building and growing "lean & mean" sustainable companies.

I need as much input into selecting the best HMRC system possible for next to nothing. I have found a number of possibilities but I wish to gain the benefit from those with experience.

Are you able to post your info to empower the rest of us to improve our ability to fulfill CIC objectives.

Thanks  Paul Young 

   

Comment by emily kelly on June 21, 2013 at 20:02

Hi all,

Would anyone know of someone experienced in CIC accounts for the dorset region? we are looking at going CIC ltd by guarantee (possibly small membership) - just struggling to find an affordable but good accountant who is experienced in cic accounts. We have had a recommendation for one - just looking to see whats available to give us a bit of choice. We are a start-up business and have no funding (yet) so need something that isn't at the higher end of the market (cost wise) to begin with ...

Comment by Ian Burnett on July 31, 2012 at 21:05

Hi Angela - a few snippets for you, I found myself in a very similar position 6 months ago ! First ensure you understand what your organisations objectives are and where funding support is required, else you will get pulled left right and centre and apply for lots of things you won't get ! To help avoid this I registered on the National Funding Central website which is funded by the Government ( http://www.fundingcentral.org.uk/) to help steer charities and CIC's to grant sources. You can set up a weekly e-mail feed that will notify you of grant opportuntiies in your area. You can also do a customised search for different types of grants so you can understand what might be relevant.

I also made contact with our County Council who have a full time External Funding Officer and a Community Engagement Officer whose jobs are to help community and charity groups get off the ground. They also had a drop in service where they will search the national grants databases and recommend suitable grant funding routes for you.

Hope useful.

Rgds, Ian

Comment by John Mulkerrin on July 31, 2012 at 12:29

@Angela, good luck with your journey taking things forward.

That project with your local GP would definitely constitute an Industry Link/Sector partner, but Id suggest you actually ask the person who said it to expand as nobody else will really be able to give you an answer as to what was meant.

A wealth of funding is 'available' to everyone, mostly you will have to compete for it and understanding what is and isnt worth pursuing can make all the difference.

Comment by COJOSA UK-IRL on November 1, 2011 at 13:01

Hi- I am looking for help within areas of fundraising. If you have any suggestions regarding getting grants and which organisations to approach will very much appreciate it. thanks

 

Comment by Terry Atkinson on October 24, 2011 at 13:32

Hi everyone

We are an accountancy c.i.c. based in the north east of England. We provide low cost accountancy support for third sector organisations in Durham, Northumberland & Tyne & Wear tel 0191 3874469

Comment by Dick Maule FCA on September 30, 2011 at 11:15

For small tax issues in the not for profit sector IR regulations will allow 5 year exemption from filing when a dormant signal is appropriate.[i.e. CT is due on bank interest only and the CT is under £100].

I am finding a surprising lack of hassle getting the revenue to agree to this....

 

Comment by Margaret Manuell on September 28, 2011 at 19:46
Hi Alastair. We actually don't make a profit - what comes in is what goes out. Technically we made a loss in each of the last two years. We hold a small reserve for emergencies. Most of our income is from funding; otherwise we charge our services at cost.
Comment by Alastair Irvine on September 28, 2011 at 15:25

Margaret, what you describe sounds like you're claiming that the CIC is "not trading with a view to making profit" and thus is taxed only on interest income.

I would be careful with this, as most social social enterprises do trade with a view to making a profit, they just do nice things with the profit. HMRC is unlikely to question this but could, so this will not apply to all CICs.

 

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