Community Interest Company and what is trading
Options
Ellabobbin
Registered Posts: 92 Epic contributor 🐘
Hello All,
After many hours trawling HMRC/Accounting Web etc, I am hoping someone can help me... Or at least point me in the right direction...
I have a CIC as a client, now everything I read tells me that a CIC is liable to CT on it's profits, no special exemptions.... But the previous accountant has not charged any profits to tax...
My only thought is that their 'profits' are not trading profits.
The company in question is a gymnastics academy - parents are invoiced termly and so it's not a members only subscription - and turnover is in excess of £30,000 and so is too big to come under the CASC exemption. I've looked at the mutual trading information but it doesn't seem to fall within that either...
Any ideas???
Thanking you all in advance
After many hours trawling HMRC/Accounting Web etc, I am hoping someone can help me... Or at least point me in the right direction...
I have a CIC as a client, now everything I read tells me that a CIC is liable to CT on it's profits, no special exemptions.... But the previous accountant has not charged any profits to tax...
My only thought is that their 'profits' are not trading profits.
The company in question is a gymnastics academy - parents are invoiced termly and so it's not a members only subscription - and turnover is in excess of £30,000 and so is too big to come under the CASC exemption. I've looked at the mutual trading information but it doesn't seem to fall within that either...
Any ideas???
Thanking you all in advance
0
Comments
-
My experience of CiC's is somewhat limited. We have one who we are currently helping through the process and are using support to ensure we are doing things correctly, and they are aware of our lack of knowledge in this area.
They are also deciding if there activities are trading are therefore taxable. This was some good guidance we found - http://www.communitymatters.org.uk/content/556/Do-social-enterprises-and-CiCs-pay-tax-on-grant-funding
Sorry I can't be of more help.Regards,
Burg0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.4K For AAT students
- 263 NEW! Qualifications 2022
- 144 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 44 AAT Level 3 Diploma in Accounting
- 66 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 268 VAT
- 90 Software
- 271 Tax
- 133 Bookkeeping
- 7.1K General accounting discussion
- 195 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 578 Job postings
- 16 Who can benefit from AAT?
- 35 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership