Question: Are CIC Exempt From Tax?

Is CIC VAT exempt?

This means the grant and services for the CIC or Charity are an exempt supply and will not count towards the £85,000 threshold, therefore there is no requirement to register for VAT.

Do you want to speak to anyone about VAT?.

Can a CIC make a loss?

A CIC is a limited company with all the usual duties and obligations of a company. … If the venture fails and makes losses the CIC must still meet its contractual obligations in regard to the venture even if this means depleting its assets or selling some of them to meet its debts.

Can a CIC own property?

The CIC or charity can own property, and rent space to the other. … The charity would be eligible for a lot more trusts and foundations that only give grants to registered charities, as well as being eligible for gift aid on donations.

What type of company is a CIC?

community interest companyA community interest company (or CIC) is a special form of non-charitable limited company, which exists primarily to benefit a community or with a view to pursuing a social purpose, rather than to make a profit for shareholders.

Does a CIC pay tax?

Unlike a charity, a CIC is not entitled to any specific corporation tax exemptions. Accordingly, a CIC’s profits are fully taxable unless it can be shown that the terms of the contract are such that, in tax law, the organisation does not amount to a taxable trade.

Can CIC claim gift aid?

Please be aware CICs cannot qualify to receive Gift Aid donations (because a CIC is not a charity). So CICs cannot take part in the ‘Local Giving’ initiative (that is an initiative for charity fundraising). CIC law specifically forbids a CIC from being a charity.