Hi Margaret. Thank you for responding so promptly. It's very useful to hear of your experience with HMRC. I have looked at your CIC's accounts and we are somewhat bigger than you although hopefully the principle applied by HMRC to you would hold good for us. Thank you also for your suggestion to go to our local CVS for help with finding an accountant. The problem is that opinions seem to vary between accountants (we have had a few opinions) and so I was looking for someone who had concrete experience of HMRC's response. I fully expect others on this discussion group to give a different opinion should I get any more replies. But it's good to hear directly from someone who has that direct experience. Thank you again.