Hi there, this is my first client of this type, I have been asked to produce a set of accounts from a cash flow statement, so I have details of all the income (which includes funding), and also a list of expenses which includes equipment and maintenance of the school which was paid by the funding.
Main Income was from funding, fees, and interest.
Main expenses were: wages, rent, equipment, hmrc - emply'ees (paye), memberships fees, insurance, uniform and stationery etc.
Sounds straight forward, but as I haven't done this type of company before don't want to assume it is the same as other company accounts in general, I have experience of doing other ltd company accounts.
Is there anything different about doing this type of company???, am I correct that all the income as listed above (even the funding) is income to be posted as profit on the profit and loss, then all the expenses deducted off that?
My worry is that as a school, are they liable to show profit and pay corporation tax?.
Should I treat them the same as other Ltd companies???
I've never acted for a CIC either but there is a CIC Regulator's website that has a section on accounts and filing requirements, which includes a separate CIC 34 report that also needs to be filed at Companies House.
As far as corporation tax goes, this guidance says that, if it's trading, a CIC is liable for corporation tax in the normal way.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
Depends what the grant is for - but normally they it is treated as income become they normally are given against specific type of expenditure and for a specific period. If a grant is given to cover 12 months, then only allocate the proportion belonging to that trading year, and the balance to the next. The type of expenditure it was given for should then be deducted against it (so hopefully there is no profit to pay CT!) If the grant is underspent, it is possible to transfer the balance to the following year and make sure it is spent then. This is because it it is not spent, there is a possibility the organisation may be asked to repay any underspend.
Hi all, thought I would keep you updated, thank you for the help, I have given the work to a contact as I felt overwhelmed and unsure on this one and didn't want the stress as the deadline is a week. I am going to read your link now Tony, just to improve my knowledge and make use of the link as much as I can, even though I'm not doing it this time round.
