I'm doing the end of year accounts for a PLC that is registered as a CIC (Community Interest Company) and is a "not-for-profit" i.e all profit is re-invested into the company activities.
Normally CICs ARE liable to CT on all profits regardless of this "not-for-profit" status, HOWEVER - the company received large donations in the weeks leading up to the start of a new financial year that were intended to be spent on projects staring in the following financial year.
surely CT doesn't need to be paid but how do I do it? The money hit the bank in March - do I put liabilities in? or are donations exempt?
Hi Joe
We always ask newbies to do a brief introduction. Eg Bookkeeper or Accountant/What is your experience of in role/have you worked for an Accountants/do you have your own clients now/what is your background pre bookkeeping/what prof body are you with/exams passed to date/which exams you are studying currently/where based - that sort of thing.
Helps us start to get to know you and to pitch answers (although answers will be a little less forthcoming than usual as this is a Bookkeepers/Accountants busiest time of year.
Is the calc trading? Where are donations from? Are they revenue or capital in nature/what are they for?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
