The CIC34 community interest company report is a mandatory annual report for all CICs in the UK. It informs the Regulator about your CIC, whom you serve, directors’ remuneration, and more.
As with every company, CICs have to submit a Confirmation Statement and Accounts, but CICs also have to file a community interest company report “CIC34” with their annual accounts with companies House.
There are two forms: the detailed and simplified reports.
Simplified: The Office of the Regulator of Community Interest Companies clarifies that most CICs will use the simplified form. It comprises just four pages. Each section is easy to fill out. If your CIC has complex financial arrangements, you might need the detailed form.
Detailed: The detailed form starts at 13 pages. The sections for directors’ remunerations, consultations with stakeholders, and so forth are much more detailed. This allows a complex CIC to share complete data about their activities, finances, and business practices.
In this blog, we’ll look at the type of information needed for the simplified section.
PART 1 – GENERAL DESCRIPTION OF THE COMPANY’S ACTIVITIES AND IMPACT
In this section, you will detail your business model, a very brief history of your business, and what community your business benefits. It’s important to consider all the different ways that you positively affect the community. Some of these effects might not be obvious, but some of these smaller effects are powerful, including reducing travel, decreasing greenhouse gases, and more.
This list should be presented as a bullet point list to make it as easy to scan as possible.
PART 2 – CONSULTATION WITH STAKEHOLDERS
The stakeholders are the people that your CIC serves. These will be the members of the community. You are required to consult with them about your services, how you might improve them, and if your services meet their needs now.
The mission, from the regulator’s perspective, is to show that you are serving the community you claim to, that your service is meeting their needs, and that you’re trying to improve your services.
PART 3 – DIRECTORS’ REMUNERATION
In this area, you will give a quick summary of how much your directors have been paid. It can be a single sentence that explains how much, in total, your directors have been remunerated.
You must then affirm, “There were no other transactions or arrangements in connection with the remuneration of directors, or compensation for director’s loss of office, which require to be disclosed”.
If the directors haven’t been remunerated, you need to include that by stating, ““No remuneration was received”.
PART 4 – TRANSFERS OF ASSETS OTHER THAN FOR FULL CONSIDERATION
This section is for you to detail asset transfers for which you have not been paid the value. This would likely be to other CIC or charities.
If there has been no transfer, you must state, “No transfer of assets other than for full consideration has been made.”
Doing It Alone or Getting Assistance with CIC34
For many CICs, the short form will be simple and only take a few minutes to complete. For much larger organisations, it will be obvious they need the detailed form.
For CICs in the middle, it’s advisable to get help, from KG Accountants or any other reputable accounting firm, to ensure that you’re meeting the guidelines and staying well within the laws.
You will still need to ensure that your accounts are completely in order. With other filings or upon request, you may be asked to show that the information you affirm in these forms can be backed up with proper documentation.
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.
0207 953 8913