Hi, I run an arts and crafts CIC in Cornwall and also help a couple of theatre based CIC`s with their accounts on a voluntary basis. I am AAT Level 4 and a qualified bookkeeper.
I have drawn up accounts, profit and loss and balance sheets for myself and for a theatre company that works with disabled children.
I have gone on the HMRC gateway to file my returns but cannot figure out where to put things like workshops, costumes, venue hire,sound and lighting etc..
I have found general administrative expenses which doesn`t cover it.
I have phoned up HMRC and they are going to get a tax advisor to call me back in the next week but I thought I would ask in case anyone else had this problem.
Based on what the CIC does, I am thinking direct costs/cost of sales.
However, make sure there are no capital expenses in there which would need to go to the balance sheet and be depreciated.
Hope that helps?
I think you are probably right. It just shows though when you do accounts for a CIC what a strange sort of hybrid animal it is, a strange cross between a charity and money making venture. In accounting terms a bit of a monster!
I will keep you informed if I ever get a call from the tax advisor.