Can community interest companies file abbreviated accounts?

On 2 September, 2019, the Office of the Regulator of Community Interest Companies announced that most of the 17,000 CICs in the UK will be able to file their accounts online.

Do you need an accountant for a CIC?

For owners of community interest companies (CICs) in the UK, the pressure to submit the annual accounts is no less intense. In addition to preparing annual accounts, they also need to submit an annual report on all their activities during the year.

Are community interest companies taxable?

A CIC is liable to CT as a company. It will be chargeable on any trading profits (but it will be a question of fact whether or not a particular CIC is trading) and on its investment income and gains. It is eligible for normal CT reliefs but there are no CIC specific tax exemptions/reliefs available.

Does a CIC have a UTR?

These can only be filed online. You will need to have a tax account before you can submit the Accounts. Also, you need a UTR (Tax reference Number) This can be found on any letter you received from HMRC.

Can a CIC file micro entity accounts?

CICs who currently file “abridged” accounts or “micro-entity” accounts are eligible to use the filing service but would need to file using the small-“full” format; as “micro-entity” and “abridged” accounts formats are not yet available to file online.

Is CIC income 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 fundraise?

A CIC will typically not be dependent on donations and fundraising as it will have a mix of income including contracts, trading income and grants. Whereas a charity is more likely to be dependent on grants, donations and fundraising for a larger proportion of its income.

How many directors does a CIC need?

Number of directors A CIC limited by shares can have just one director and shareholder. A CIC limited by guarantee should have at least two directors (trustees). Some banks or funding bodies will prefer there to be at least three.

Can a director of a CIC be an employee?

Directors as office holders are employees There are specific rules that mean if you are a Director of your organisation you are treated as an office holder by HMRC, and this means any payments you receive for your role as a Director must be as salary and subject to PAYE.

Can a CIC make money?

If limited by shares it may be able to expand through the selling of shares. There is no limit to the level of profit a CIC is allowed to make as this profit will be used to benefit the community it was set up to serve. So a CIC may find Community Finance Institutions a valuable source of funds.