Community Interest Companies (CICs) are a special type of company in the UK. They have a primary goal of benefiting the community or pursuing social objectives. Their involvement in the communities goes anywhere from arts engagement or enhancing technological literacy and ensuring access to digital skills to being involved in community craft industries to foster local economic development. And while CICs enjoy certain tax benefits, they are still subject to specific tax obligations.
What are the tax obligations for CICs?
One of the most important tax obligations for CICs is corporation tax. Just like any other company, CICs must pay corporation tax on their profits. In addition to corporation tax, CICs may also be liable for other taxes such as Value Added Tax (VAT) and National Insurance Contributions (NIC).
So, if you’d like to hear more about these tax obligations for CICs, here’s a short video explainer for you. Click to watch so you get more information.
It’s worth noting that while CICs have certain tax obligations, they may also be eligible for specific reliefs or exemptions depending on their activities or objectives. CICs should seek professional advice from accountants or tax specialists to ensure compliance with all relevant taxation requirements while maximising applicable benefits.
For all questions or help about taxes for CICs, drop us a line.
Taxes for CICs are only one aspect of financial planning. As with any other company, a community interest company needs to stay on top of all its finances so that it continues to nurture the community. It is with that purpose in mind that we developed our software solution Budgetwhizz. It makes keeping track of your cash flow and financial planning easier. Plus, it helps you stay organised so you can focus on what matters to you. Which is the creative work and the impactful change. Take a step away from the chaos with fast setup & easy navigation – numbers just got real…for the better! Get organised & make sense of it all with Numbers Knowhow today!