We are considering setting up a self funded CIC but I am concerned we will be taxed more as a CIC (and less to re-invest) than if we set up as a normal Ltd company. From my understanding a normal Ltd compnay (with 2 £1 private shares) can pay say a 20k take home pay to a Director through dividends which is offset from Corp tax, which is far more tax efficient than salary. Thus a true social enterprise which re-invests over 90% of its profits back into the enterprise and wants to remunerate its Directors with a 20k take home salary would have significantly more money left in the pot to reinvest as a normal Ltd company than a CIC (by being able to offset the 20% or so Corp Tax). If I have this right it seems strange to penalise CICs in this way, or have I missed an obvious work round that negates this penalty?
Any help here would be much appreciated as the other aspects of a CIC would suit us very well.