Community Interest Company Tax

Does a community interest company (CIC) Pay Tax?

A community interest company (Or CIC) is liable to Corporation tax as a company. This applies to all it’s Trading profits, Investment Income and any gains.

It’s an asset locked body that must ensure any profits/assets are used for the benefit of the community.

Unlike a charity, a CIC is not entitled to any specific corporation tax exemption.

Do CIC companies (community interest companies) pay VAT?

CIC status does not automatically equal VAT Exemption. You might still achieve VAT exemption, but this is subject to satisfying specific set of rules.

It’s worth mentioning that when the CIC reaches the VAT Threshold, you need to make an application to get the VAT exemption.

Are donations to a CIC tax deductible?

A community interest company (Or CIC) Is not a charity and therefore cannot claim gift aid. This also means an individual can not claim Gift aid on the Payment.

A CIC can not apply to HMRC for Gift Aid Status. However, if a CIC donates surpluses to a charity, it will be able to deduct the amount of any such donations as a “charge” when working out its profits for corporation tax purposes.

KG Accountants have in-depth knowledge and expertise in dealing with CIC Tax Returns, CIC VAT, CIC Bookkeeping, CIC Accounting, administration right through to preparing and carrying out independent examination of CIC accounts.

The Specialist services we offer to Community Interest Company include:

  • CIC Payroll: Setting up and managing your CIC PAYE for all your staff.
  • Help with completing a Community Interest Company Tax return.
  • CIC Bookkeeping: We shall set up a bookkeeping system for your CIC.

The above list of services is not exhaustive. We are pleased to offer advice and assistance on any CIC Tax matters.

At KG Accountants, we provide a cost-effective, high value solution to meet all of your CIC Tax needs.

All our CIC fees are fixed.

By giving you a fixed and competitive price, we can take the worry away when it comes to running your CIC; allowing you to concentrate on running your organisation.

Arrange a FREE CIC initial consultation.

0207 953 8913

How we can help

Call us today on 0207 953 8913 or complete our enquiry form in order to book a FREE initial CIC consultation.

Require more information about CIC?

If you would like more information or would like to ask us a question about a CIC then call us on 0207 953 8913. To ask us a question online click here.