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: 176
Latest Activity: Sep 22

Discussion Forum

Urgent help needed with CT600

Dear all!I run a small CIC with very limited funds. Our numbers are simple and we have calculated a loss for the 2 years we have been running.Last year my family accountant did our accounts and was…Continue

Started by Aaminah Patel Sep 22.

Corporation tax

I am helping a couple of CICs in Bristol and would welcome some help on what is eligible or not for corporation taxEg are donations/fundraising wholely and freely given not liable for tax.What is the…Continue

Started by Jonathan Stephens Sep 3.

Confused with HMRC (Help!) 2 Replies

Hello and thanks for adding me in to the forum. I've set up a very new cic (incorporated last week) and have found lots of useful information and explainations here. Something I've never had to deal…Continue

Started by Hilary Hawkes. Last reply by Mahmood Reza Aug 14.

Re training costs

Hi I think I posted this incorrectly before so apologies for that (!) We would like to commit some of the surplus we are currently generating toward supporting counsellors and students with training…Continue

Started by Rachel Gardiner-Hill Aug 2.

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Comment by Rachel Gardiner-Hill on August 1, 2019 at 18:11

Hi I've asked this before but wonder if anyone can offer any input.  We would like to put some of the surplus we are currently generating towards supporting training costs for volunteer students with us who are undertaking training in specialist skills that they would then put to use to benefit our CIC.  Can anyone suggest the best way to set this up and if there are any HMRC reporting needs from ourselves or for the students?

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?


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