Expert Accountants for Community Interest Company (CIC)

A Community Interest Company (CIC) is a type of limited company that uses its profits and assets for public good. A charity is a registered organisation with the Charity Commission. The main differences are:

• CICs can distribute limited dividends to shareholders; charities cannot distribute any profits
• Charities receive tax benefits (Gift Aid, business rates relief); CICs do not
• CICs have more flexibility in trading activities than charities
• CICs are regulated by the CIC Regulator; charities by the Charity Commission
• CICs must produce a CIC report; charities must produce trustees' annual reports

Yes, all Community Interest Companies must file annual accounts with Companies House, just like any other limited company. CICs must also file an annual CIC report with the CIC Regulator at the same time.

The filing deadline is typically 9 months after your financial year end. Our accountants ensure your CIC accounts and CIC report are prepared and filed on time to avoid late filing penalties. To keep your records tidy in between filings, see our guide to free bookkeeping software for a Community Interest Company CIC.

A CIC report is an annual document that demonstrates how your CIC has delivered community benefit during the year. It must be filed alongside your annual accounts.

The CIC report must include:

• Details of the community benefit activities undertaken
• How stakeholders have been consulted
• Information about directors' remuneration
• Details of any asset transfers or dividend payments
• How the asset lock has been maintained

Our accountants prepare comprehensive CIC reports that meet all CIC Regulator requirements.

Yes, CICs limited by shares can pay dividends to shareholders, but there are strict limits. The dividend cap ensures that most profits are retained for community benefit rather than private gain.

Currently, the dividend cap is set at 35% of distributable profits. This means up to 35% can be distributed as dividends, with the remaining 65% retained for community benefit.

Our accountants can advise on dividend payments and ensure your CIC complies with asset lock requirements.

Yes, CICs are subject to corporation tax in the same way as other limited companies. Unlike charities, CICs do not receive automatic tax exemptions.

If your CIC receives a notice to file from HMRC, you must submit a corporation tax return (CT600) even if you have no tax to pay. We provide corporation tax services for CICs including CT600 preparation and submission.

We offer fixed-fee pricing for CIC accounting services with no hidden costs. The exact fee depends on your CIC's size, complexity, and the services you need.

Our typical packages include CIC annual accounts preparation, CIC report preparation, and Companies House filing. We also offer additional services like bookkeeping, payroll, and corporation tax returns.

Book a free consultation to discuss your CIC's requirements and receive a fixed-fee quote with no obligation.