Irrespective of the size, every CIC needs to file a set of accounts and also to submit a CIC tax return (Form ct600) and we agree that CIC company accounts preparation, adhering to deadlines and producing them in iXBRL format accepted by HMRC is a tough task for sure!
Let’s get going!
Do I Qualify to File CIC Micro entity Accounts?
Before we talk about filing a CIC tax return, we need to figure out if your company even qualifies as a CIC. Her Majesty’s government has a few criteria your company needs to meet to file as a CIC.
The first requirement is your company can’t turn over more than 10.2 million pounds. Next, you can’t have more than 5.1 million pounds on your company’s balance sheet. And, finally, your company needs less than 50 employees.
If you choose to file “full” accounts with Companies House, you can enjoy the benefits of applying online. Any other account type will need to file their cic accounts by post.
This means it would need to be delivered via post to Companies House by the appropriate deadline.
This is big news, as it was just made available in 2019. If you choose to file as a “micro-entity” or to file an “abridged” account, you ned to do this by post. You can only file full accounts online.
Ultimately, it’s up to you what type of accounts you choose to file for your CIC. The only requirement is that copies of whatever accounts you file need to be recorded with the Registrar of Companies.
It’s also important to note that any CIC can’t prepare one form of accounts and then file another. What you prepare and what you file have to match.
The Filing Process
So, what exactly do you need to file? Well, no matter what type of accounts you choose (small, micro-entity, abridged, etc.), your filing always needs to contain a balance sheet and notes. Again, the type of accounts you choose to file are entirely up to you.
Full account filings don’t include much more information than an abridged or micro-entity account. So, if security and privacy were reasons why you stay away from filing a full account, you don’t have to worry.
Also you need to complete and and file a CIC34 Form
Gather Your Paperwork
Any receipts, letters, or bills you have concerning your CIC accounts need to be rounded up. It may help if you put them together neatly throughout the year, so that when it comes time to file, it’s less of a headache.
Take time to look through your mail, emails, and filing cabinets. Dedicate a folder for all of the paperwork. That way it’s all in the same place come tax time.
Use online accounting Software
This may require a bit of an initial upfront investment, so if you can’t afford it right now that’s fine. Do your best to be as organized as possible with a manual system. QuickBooks is a great platform to help you organize your taxes.
Of course, software only helps if you know how to do some basic bookkeeping. If you’re unsure how to file your CIC return, then have an accountant do it for you.
Annual Community Interest Report
In addition to the 15-pound fee and balance sheet, you’ll also need to file something known as an Annual Community Interest Report. This document is what helps to keep your company’s CIC account status. The Registrar of Companies uses this to make sure your company is, in fact, doing work that is helping the community.
The report is also known as CIC form 34 and needs to be submitted simultaneously, along with your accounts, to the Registrar of Companies. The report also needs to be made on the same date as the accounts you’re filing to be valid.
Every director of a CIC is responsible for an Annual Community Interest Report. There is no way around it. The Registrar of Companies also has minimum requirements for an acceptable Annual Community Interest Report.
The report needs to contain a description of the activities the CIC has done to benefit the community. It also needs to contain any new information about the organisation of its members. This may include how many directors there are and the total combined pay of all the directors.
The CIC also needs to include any transfers of assets and a description of how its stakeholders were involved in the community, as well.
This isn’t a complete list of the Annual Community Interest Report requirements. We recommend discussing it in more detail with a tax professional.
Other Important Documents
The most important documents that you need when filing your CIC return are your UTR-10 and your bank statements. These will be extremely helpful when putting the financial picture together for your CIC.
Your UTR-10 is the ten-digit number that Companies House uses to identify your return. It’s usually included on mail that you receive from companies house.
How we can help
Though detail-oriented, filing CIC accounts mostly comes down to vigilance in what changes inside an organisation so that reports can be completed quickly.
Tracking assets is key to keep the CIC in line with regulations and to give it the flexibility necessary to dissolve, change structure and meet its commitment to the public good.
Don’t fall behind in filing. Reach out for help by contacting KG Accountants for advice and guidance.
If you have any questions about filing as a CIC, becoming a CIC, or anything else related to your taxes, give us a call anytime. KG Accountants is always happy to help.
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