We want to set up direct debits on our website to collect membership fees. Does anyone have a recommendation? Thanks Continue
Started by Gwynneth Page Nov 22, 2020.
Hi. I've got a situation where two (very small) CICs have agreed to do a joint fundraising campaign for an urgent need where their purposes overlap (it involves a minority community in the…Continue
Tags: legal, issues., joint, campaign, fenced
Started by Nathanael Lewis May 31, 2020.
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. Last reply by Louise poor May 21, 2020.
Hi - We are setting up a new CIC. It will be quite small scale employing one person part time. Income will be ~ £6/7K. There will be around 260 transactions per year. We want to keep costs down. In…Continue
Started by Pete Scott. Last reply by Louise poor May 21, 2020.
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Margaret, what you describe sounds like you're claiming that the CIC is "not trading with a view to making profit" and thus is taxed only on interest income.
I would be careful with this, as most social social enterprises do trade with a view to making a profit, they just do nice things with the profit. HMRC is unlikely to question this but could, so this will not apply to all CICs.
Hi
Our problem was eventually solved by an accountancy firm acting as our tax agent pro bono. Because of the nature of our activities and the fact that directors/members are volunteers and receive no share payments, all income being returned to further our community work, we are counted as non-trading and only have to pay tax on any interest (if any) we earn from reserves. I thought this might be of interest to other similarly set-up c.i.c.s
Hi Heidi
Thanks for your reply. Unfortunately this year they have changed CT600 and it no longer looks like it did. It's no longer an online form but a downloaded Adobe pdf with encrypted permissions, which requires either Adobe 9 or 10X. I filled the old online form without problems last year & sent up the pdf documents in support. This year the form is more complex. It asks for full details of directors. It also requires information about accounting models and depreciation rules and lots of other stuff in supplementary boxes, before going on to profit & loss (by which time it's reached number AC 12, and instead of a simple turnover and expenses declaration, each is broken down into sub divisions that mostly don't have anything to do with our activities. I will try just putting in our gross figures and see if the form will accept them, if not we'll have to pass the hat round to pay for an accountant.
Margaret
Hi Margaret
You can use the forms that HMRC provide online to complete your tax return. This will enable you to also submit the accounts in the right format for HMRC. To do this you would need to be registered with HMRC's online services. There is a demo of their system (I'm not sure how good it is!) at http://www.hmrc.gov.uk/demo/organisation/corporation-tax/
In relation to the income and expenditure categories, you would be entering your income under Turnover at Box 1 (assuming that it is not Government grants that are not taxable), and then entering your surplus at Box 3 and again at Box 5. If you have no other income or losses then this figure is also entered at Box 21 and 37. Then you would need to calculate the tax payable.
If you are still having difficulty completing this using their online system, it may be that you need to get an accountant to file this for you. From 1 April the accounts have to be submitted in IXBRL format and the tax returns must be submitted online, so its not as straight forward as it used to be.
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