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: 119
Latest Activity: on Wednesday

Discussion Forum

Accounts Format 7 Replies

Hi all,Unfortunately, I have had my accounts declined twice by Companies House, even after I did everything as they asked me to do! Does anyone have a sample of any accounts for a small company they…Continue

Started by Samina Noor Deen. Last reply by Samina Noor Deen Feb 9.

Just set up a CIC limited by guarantee and need some advice 2 Replies

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…Continue

Started by Max Jamieson. Last reply by Jane Mellor Feb 8.

How to close down a CIC? 5 Replies

Dear CIC members,We sadly have to close down the CIC which I have been running for the past 5 years. We have made a big difference to many children with learning problems, but the cost of developing…Continue

Started by Elizabeth McClelland. Last reply by Sophia Loi Shaw Oct 22, 2016.

Accountant/Book Keeper recommendation 3 Replies

Hello, I have recently set up a CIC and would like to get all my accounts working in the best possible way at the outset. Can anyone recommend an accountant or book keeper who could help me set this…Continue

Tags: accountant

Started by Nina Feldman. Last reply by Naresh Rao Oct 5, 2016.

Comment Wall

Add a Comment

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

Comment by Rachel Gardiner-Hill on November 25, 2015 at 13:27

Hi Heidi

That is  massively useful information.  Thanks.

Rachel

Comment by Heidi Fisher on November 25, 2015 at 11:52

Hi Rachel,

Yes Adrian is right about being able to defer grant income to future periods if the expenditure is going to be in the following period.  In terms of corporation tax the rate is 20%.  If you have purchased capital assets then you can claim capital allowances which would reduce the amount of corporation tax due.  The regulator would not be expecting you to show a loss or break even position - this is a misconception around CICs - CICs should be making a profit - otherwise you are always struggling financially and will never have any reserves.  There is a balance to be had between spending the money to reduce your profits and therefore pay less corporation tax, and building up your reserves (which would involve paying more corporation tax) in order to provide some security if you have a drop in income in the future or have unexpected costs.  

The whole point of a CIC is to make profits/surpluses and to use those profits to benefit the community.  This is the key difference between a CIC and a normal limited company - the use of the profits you generate.  

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

 

Members (119)

 
 
 

Groups

From Funding Central

Events

© 2017   Created by John Mulkerrin.   Powered by

Badges  |  Report an Issue  |  Terms of Service