Does a CIC need an accountant?

Does a CIC need an accountant?

Accounting for CICs Copies of statutory accounts should always be sent to: Companies House, HMRC, all shareholders and those who attend the company’s general meetings. Annual accounts include: A balance sheet – this shows the value of everything a company owns, owes and is owed up to the last day of the financial year.

Can a CIC file accounts online?

If you are a CIC that meets the above criteria you can file online if you choose to file ‘small’ full accounts. As the majority of CICs are ‘small’, or ‘micro entity’, the online filing option will be of benefit to those CICs who file the simplified annual report.

Are CICs registered at Companies House?

CICs are companies registered at Companies House and either limited by shares or by guarantee.

Do CICs need to be audited?

The accounting requirements for a CIC are the same as those of other companies (the amount of detail, and the extent to which an audit is required varies with the size of the company, and according to whether it is public or private).

Is CIC income taxable?

Unlike a charity, a CIC is not entitled to any specific corporation tax exemptions. Accordingly, a CIC’s profits are fully taxable unless it can be shown that the terms of the contract are such that, in tax law, the organisation does not amount to a taxable trade.

Are donations to CIC taxable?

CICs are taxed in the same way as normal companies. They are subject to corporation tax and VAT and a CIC that makes donations to charity can deduct this as a charge when calculating its profit for corporation tax purposes.

Can a CIC pay directors?

A major advantage of CICs is that their directors can be paid a salary, which means that the founders of the CIC can retain strategic control of the enterprise by sitting on the board as paid directors.

Do CICs pay corporation tax?

Can a CIC make profit?

A community interest company (CIC) limited by guarantee is a ‘not for profit’ company, this means that it does not operate for private profit. Any profit generated is used to grow and develop its business which is benefiting an identified community, or goes directly to benefit that community.

How to file a community interest company account?

Community Interest Company accounts Going into the filing process for a CIC company, it’s important to be aware of the whole process and all of its elements. The filing needs to include all of the business for a financial year, which means having that information to complete the statutory account.

Is the publication Community Interest Company ( CIC ) licensed?

Partnership accounts 17. Community interest companies (CICs) This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated.

Which is better a charity or a community interest company?

Compared to setting up as a charity, a CIC offers several further advantages: A community interest company is quicker to form than a charity, with a single consolidated application to form the company made to Companies House, which they and the CIC Regulator separately review.

Do you have to file an annual CIC account?

It can be Tough and frustrating!!! This is especially frustrating in regards Community Interest Companies (CIC) accounts which must file both an annual account filing and a report on the year’s activities.