Community Interest Companies (CICs) in the UK are required to submit a CIC34 each year. All CICs registered in the UK are required to submit the CIC34, a document that contains vital information on the CIC’s operations and finances to Companies House.
Two CIC34 forms: How much did you make last year?
There are two CIC34 forms: simplified and detailed.
For smaller CICs that satisfy specific requirements, the simplified CIC34 report is a condensed form of the annual report. These requirements include having a turnover of under £632,000 and a balance sheet total of under £316,000, respectively. For smaller CICs, reporting will be simpler and take less time using the simplified report because it requires less information.
The full CIC34 report is a more thorough report that is necessary for larger CICs that do not fit the requirements for the simplified report. A review of the CIC’s operations during the year, an analysis of its financial results, and any adjustments to its social effect are just a few of the more specific details that are needed for the full report. The extensive report gives readers a clearer picture of how the CIC operates and aims to increase their comprehension of how the business affects the neighbourhood it serves.
Similarities and differences between the detailed form and the simplified form?
We’ll look at each section of the forms side by side, discovering similarities and differences.
Part 1: Both forms have the same part 1: GENERAL DESCRIPTION OF THE COMPANY’S ACTIVITIES AND IMPACT. This is a narrative area where you can talk about all the good work you’re doing and how you’re doing it.
Part 2: Both forms have the same section 2:CONSULTATION WITH STAKEHOLDERS, but the detailed form breaks this out.
The simplified form has a single section where you would talk about who the stakeholders are, how they’ve been consulted, what, if anything, was the result.
The detailed form seeks more information. They divide this part into three sections: who are the stakeholders who were consulted, how they were consulted, and what action was taken, if any.
Part 3: One both forms, Part 3 refers to DIRECTORS’ REMUNERATION. On the simplified form, it states that if you have submitted this information in your annual accounts, you don’t need to reproduce it. Otherwise, the form seeks to summarise your remuneration. A CIC that doesn’t remunerate their directors can use this form.
In Part 3 of the detailed form, there are multiple sections that include the total amount of directors’ remuneration, compensation of directors for loss of office, and sums paid to third regarding directors’ services. This area requires significant detail and assumes that the CIC has several directors and that those directors are remunerated.
On both forms, Part 4 deals with TRANSFERS OF ASSETS OTHER THAN FOR FULL CONSIDERATION. Again, the area on the simplified form is small, assuming very little activity.
The detailed form seeks much more information, such as a full description, details about the recipient, whether the recipient is asset-locked or not and how it will benefit the community.
It even asks for more information about the Regulator’s approval if the body is asset-locked, but is not so specific.
That is the end of the simplified form, but the detailed form has two more sections.
Part 5—DIVIDENDS FOR THE FINANCIAL YEAR TO WHICH THE REPORT RELATES – For limited by shares CICs, this section seeks details on all dividends paid.
Part 6—INTEREST PAID AT A PERFORMANCE RELATED RATE – The form states clearly which CICs should complete this section, “This part should only be completed if the company has, at any time during the financial year to which this report relates, had a debt outstanding, or a debenture in issue on which a performance-related rate of interest was payable.”
Deciding which form to complete
Clearly, the detailed form is designed for CICs with multiple divisions, missions, and often many directors. Any CIC with complex asset, interest, or remuneration activity will need the detailed form.
The simplified form allows the CIC to complete the required paperwork in just a few minutes. While the information must be 100% accurate, if there’s not a lot of detail to be had, there’s no reason to work on the larger form.
When is the CIC34 due?
What to do if your deadline is coming up fast?
If you need help to get your CIC34 done in time, contact the team at KG Accountants. Our team can often create and file reports in a couple of days.
Your CIC34 is due every year 9 months after the end of the company’s fiscal year. This means that the form will be due at the same time every year.
How we can help
By giving you a fixed and competitive price, we can take the worry away when it comes to preparing the CIC Accounts,CIC34 Form and CIC Tax returns; allowing you to concentrate on running your business!
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Categories: CIC Accounts, CIC Tax return, CIC34, Community Interest Companies, filing CIC Account, filing CIC Account, Uncategorized
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