What is the difference between a CIC and a charity?

A Community Interest Company (CIC) is a type of limited company that uses its profits and assets for public good. The main differences are: CICs can distribute limited dividends to shareholders whereas charities cannot distribute any profits; charities receive tax benefits like Gift Aid while CICs do not; CICs have more flexibility in trading activities; CICs are regulated by the CIC Regulator while charities are regulated by the Charity Commission; and CICs must produce a CIC report while charities produce trustees' annual reports.

Do CICs need to file accounts with Companies House?

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.

What is a CIC report and what should it include?

A CIC report is an annual document that demonstrates how your CIC has delivered community benefit during the year. It must include details of community benefit activities, how stakeholders have been consulted, information about directors' remuneration, details of any asset transfers or dividend payments, and how the asset lock has been maintained.

Can CICs pay dividends to shareholders?

Yes, CICs limited by shares can pay dividends to shareholders, but there are strict limits. 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.

Do CICs pay corporation tax?

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.

What accounting services do CICs need?

Community Interest Companies typically need CIC annual accounts preparation, CIC report preparation, Companies House and CIC Regulator filing, bookkeeping services, payroll services for employees, and corporation tax returns if required by HMRC. Professional accountants can provide all these services with fixed-fee pricing.

CIC Accounting Specialists

Expert Accountants for Community Interest Company (CIC)

Specialist accounting services for Community Interest Companies across the UK. Our expert accountants understand CIC regulations, CIC reports, and social enterprise accounting requirements to keep your organisation compliant and financially healthy.

CIC annual accounts and CIC report preparation
Companies House and CIC Regulator filing
Asset lock and community benefit compliance
Fixed fees with no hidden costs

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What is a CIC?

Understanding Community Interest Companies

A Community Interest Company (CIC) is a special type of limited company that exists to benefit the community rather than private shareholders. CICs use their profits and assets for public good.

Asset Lock Protection

CICs have an 'asset lock' which ensures that the company's assets and profits are used for community benefit and cannot be distributed to shareholders or members beyond certain limits.

CIC Report Requirement

Every CIC must produce an annual CIC report alongside their accounts, demonstrating how they have benefited the community during the year.

CIC Regulator Oversight

CICs are regulated by the CIC Regulator, who monitors compliance with CIC regulations and ensures community benefit is being delivered.

Key Features of CICs

Limited liability structure protecting directors and members
Can be a company limited by shares or guarantee
Trade for social purpose and community benefit
Can pay reasonable salaries and dividends (within limits)
Easier to attract social investment than traditional charities
Registered with Companies House and the CIC Regulator

CIC vs Charity: What's the Difference?

While both CICs and charities exist for social good, CICs offer more flexibility in trading activities and can distribute limited profits to shareholders. Charities have stricter regulations but benefit from charitable tax exemptions.

Learn more about CICs

Our CIC Accounting Services

Comprehensive accounting services designed specifically for Community Interest Companies across the UK

CIC Annual Accounts

Professional preparation of annual accounts for your CIC in accordance with FRS 102 or FRS 105, ensuring full compliance with Companies House requirements.

Statement of Financial Activities
Balance Sheet preparation
Directors' Report

CIC Report Preparation

Expert preparation of your annual CIC report demonstrating community benefit and compliance with CIC Regulator requirements.

Community benefit reporting
Stakeholder consultation details
Directors' remuneration disclosure

Companies House Filing

Timely submission of your annual accounts, confirmation statement, and CIC report to Companies House and the CIC Regulator.

Annual accounts filing
CIC report submission
Confirmation statement

CIC Registration Services

Complete CIC registration and setup services including company formation, CIC application, and registration with the CIC Regulator.

Company formation
CIC application preparation
CIC Regulator registration

CIC Payroll Services

Complete payroll management for your CIC employees, including RTI submissions and auto enrolment pension compliance.

Payroll processing
RTI submissions to HMRC
Pension auto enrolment

Corporation Tax Returns

Preparation and submission of corporation tax returns (CT600) for CICs receiving notice to file from HMRC.

CT600 preparation
Tax computation
HMRC submission

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Why Choose Our CIC Accountants?

Expert accountants who understand the unique requirements of Community Interest Companies

CIC Specialists

Expert knowledge of CIC regulations, asset locks, and community benefit requirements

Fixed Fees

Transparent pricing with no hidden costs - you know exactly what you'll pay

Fast Turnaround

Quick and efficient service ensuring you meet all Companies House deadlines

100% Online

Fully online service supporting CICs across the UK from anywhere

Qualified Accountants

ACCA, IFA & AAT qualified accountants with expertise in social enterprise accounting

Professional Indemnity

£1 million professional indemnity insurance for your complete peace of mind

15+ Years Experience

Over 15 years supporting CICs and social enterprises across the UK

Frequently Asked Questions About CIC Accounting

Common questions about accounting services for Community Interest Companies

Ready to Get Expert Accounting Support for Your CIC?

Book a free consultation to discuss your Community Interest Company's accounting needs. We'll explain how we can help and provide you with a fixed-fee quote.

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