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Post Info TOPIC: What tax does a micro non-profit Ltd company have to pay?


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What tax does a micro non-profit Ltd company have to pay?
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What type of company has been set up?

If it is a Community Interest Company then Corporation Tax is payable on the profits (and that includes donations).

If it is a registered charity then it will be mostly exempt from tax.

You should still have to file a Corporation Tax Return.



-- Edited by Truemanbrown on Sunday 31st of March 2013 11:17:44 PM

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Unincorporated associations (eg members clubs) and companies limited by guarantee are entities liable to corporation tax, just as companies limited by shares are.

The question then is whether or not the body concerned has profits liable to corporation tax.

There are plenty of bodies out there that are non profit making, but not within the legal meaning of charity and therefore not able to register as such or to claim the tax exemptions- they are liable to corporation tax on all their income. This includes:-

  • trading income from an activity conducted (broadly) for profit with some degree of organisation, reselling of good etc;
  • all types of investment income including bank interest and rents.

 

It is in the area of investment area that most so-called not-for profit organisations will have to account for corporation Tax.



-- Edited by Truemanbrown on Sunday 31st of March 2013 11:22:41 PM



-- Edited by Truemanbrown on Sunday 31st of March 2013 11:25:27 PM

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The turnover is 24000.  Currently the company is likely to make a loss.  Income is from donations, runing educational courses, book, cd, dvd, video sales, mp3 downloads etc. 

What tax issues are there to consider, only corporation tax or are they others? the company is exempt form VAT.

If it makes a loss then there is no tax to pay i assume, if it makes a profit then do nonproft ltd companies havv to pay corporation tax?

Is it still necassary to do an anuual return to HMRC if no tax is to be paid?

Thanks.



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Type: Private Ltd By Guarantee w/o Share Cap
Category: Total Exemption Small

Its not a registered charity.
I'm not sure whether it is a Community Interest Company or not. I haven' t heard of this before, what is the difference between this and a non profit limited company?

Also does "Private Ltd By Guarantee w/o Share Cap" mean the same as a nonprofit ltd company?


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ok thanks.

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