CIC Association

Serving Community Enterprise

Information

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: 134
Latest Activity: yesterday

Discussion Forum

VAT advice 2 Replies

Hello,I'm a Trustee for a small health charity, based in London, and we are considering converting to a CIC. I'm concerned about the VAT implications and am looking for advice around this.Has anyone…Continue

Tags: charity, London, accountant, VAT

Started by Mufeedah Bustin. Last reply by Andrew Fleet yesterday.

Dormant accounts for first year of trading 1 Reply

Hi, I am helping a friend with their CIC accounts and have a few queries.It says on Gov.uk that if you registered for Corporation Tax before your accounting reference dateYou usually:don’t file a tax…Continue

Started by Louise poor. Last reply by Andrew Fleet yesterday.

Filing Account Returns for Dormant CiC 1 Reply

Hi, I need help in filing our account returns with HMRC s we are yet to commence activities since our registration. Do i need to prepare any document or P&L account even when there is nothing to…Continue

Started by Lanre Olabode. Last reply by John Mulkerrin Aug 2.

Classic Employed/Self Employed question 2 Replies

posted by Caroline DrakeGood morning,My friend and I have set up Lovemindfulness cic to teach mindfulness in schools. We have established with the local authority that we are exempt from ir35 because…Continue

Tags: CIC, employed/self, cic, a, in

Started by John Mulkerrin. Last reply by Geoff Jul 27.

Comment Wall

Add a Comment

You need to be a member of Accounts Group to add comments!

Comment by Rachel Gardiner-Hill on November 24, 2015 at 22:00

Thanks Adrian that's really helpful.

Rachel

Comment by Adrian Ashton on November 24, 2015 at 21:32

corporation tax applies to all declared profits - however, if you're planning on using surpluses to reinvest against costs that you know will be being incurred in the coming financial year, then your accountant should be able to help you present the accounts in this way accordingly on an accruals basis...?

(however, am sure there are proper accounts here that can phrase that far more properly than I can - hopefully Heidi Harris can best advise as she specialises in CIC accounts)

Comment by Rachel Gardiner-Hill on November 24, 2015 at 20:32

Can anyone clarify the situation re CIC's and corporation tax, I absolutely get it that we have to pay it if we generate a profit.  The reason I ask this is because it is likely we will reach our year end with a small surplus that it feels prudent to hold as we may have to move premises next year.  However the impression I get from our accountant is that the regulator would expect that we would only be breaking even or making a loss?

Having always worked in the charity sector I am finding this tension in the CIC model between holding funds and having to spend them pronto before the year end quite difficult.

Also can anyone clarify what rate of corporation tax any surplus might generate, I am talking small here £2k or less.  

Thanks.  Rachel

Comment by Rachel Gardiner-Hill on April 20, 2015 at 13:50

Thanks John I thought that might be the case.

Comment by John Mulkerrin on April 15, 2015 at 15:54

Hi Rachel

You cant get both!

Comment by Rachel Gardiner-Hill on April 15, 2015 at 10:46

Has anyone had any success in securing discretionary rate relief from their rating authority as well as small business rate relief?

Comment by Dick Maule FCA on September 16, 2014 at 19:00

Naresh just got in touch, I am Bristol based, [Picton Street], welcome to email me on Dicmaule@yahoo.com if you want to talk further

Comment by Hazel Plastow on September 16, 2014 at 10:00

Hi - first post and just starting out having set up a CIC with 4 Directors (unpaid as yet) and starting to apply for grants.  I wonder if someone could advise: I understand that as Directors we can undertake work for the CIC under PAYE, but is there also the option of doing the work on commission on a self-employed basis - from my initial trawl on the web I gather this may not be acceptable to HMRC.  Many thanks, Hazel

Comment by Subrata Saha on September 3, 2014 at 9:26

a)I was wondering whether  a Director in a CIC ( limited by guarantee) not earn any remuneration from their CIC , would they need to submit Self Assessment report to HMRC? b) If a Director earn any amount even less than  £500 from their own CIC and have outside employed job, I am very much sure they need to submit self Assessment report to HMRC?  regarding income?

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.

 

Members (134)

 
 
 

Groups

From Funding Central

Events

© 2017   Created by John Mulkerrin.   Powered by

Badges  |  Report an Issue  |  Terms of Service