CIC34: Community Interest Company Report
The CIC34: community interest company report is a critical part of maintaining the status of your social enterprise.
CICs have an added annual administrative burden. Resultantly, the CIC regulator manages community interest companies with a light touch.
The reporting standards for a CIC are minimal compared to UK corporate reporting requirements. Still, it’s critical that you complete a CIC34 report each year—and on time—along with annual CIC tax and Annual Account’s reporting.
To learn more about managing the annual community interest company report, continue reading.
Who Needs to File a CIC34?
A social enterprise is a business that works toward the common good. In other words, it fulfils a social need.
For example, a social enterprise might work toward strengthening the community. Alternatively, it might work to improve the lives of individuals.
There are several forms of organisation that you can use to establish a social enterprise. These forms include:
- Limited company
- Unincorporated association
- Community interest company (CIC)
- Charitable incorporated organisation (CIO)
- Co-operative or community benefit society.
A small organisation may not need to incorporate to start a business that promotes social good. However, a community interest company is a special kind of limited business organisation.
A CIC has a structure that’s similar to that of a corporation. However, the company benefits the community rather than private stakeholders. If you operate this kind of establishment, you’ll need to file a CIC34 report each year.
What Is the CIC34?
A CIC34 report is a form used for annual reporting. Each year, you’d submit the report to the Regulator of Community Interest Companies. You’d submit your information to the Regulator by way of the Registrar of Companies in your area.
There are two kinds of community interest company reports—detailed and simplified.
Most CICs can use the simplified reporting form. If your CIC has a complex financial arrangement, however, you’ll need to use the detailed reporting form. Furthermore, you’ll most likely need the assistance of an expert financial advisor if your CIC has this level of financial complexity.
The Regulator files the report in the public register. Accordingly, the annual CIC report is an opportunity to showcase your organisation’s contributions to the community.
How to Fill Out the CIC34
There’s a time limit for filing the annual CIC34 report. If your organisation struggles to meet the deadline, you’re not alone.
There are many details that you must gather to complete the report. At times, it can prove challenging to track down needed information.
Furthermore, it takes time to compile the information correctly. However, the process is a bit easier if you stay up-to-date on the key information required for reporting.
The following are a few top areas of concern for annual CIC34 reporting.
General Description of the Company’s Activities and Impact
In this section, you’d provide an account of your company’s yearly activities. In your account, you’ll detail how your CIC benefits the community.
You might begin with a sentence containing basic information, such as the name of your company and its location. You might also want to provide the launch date of your CIC.
Next, you can go on to describe a few ways that your CIC has benefited the community. You might also include how your organisation has enriched the lives of CIC staff members and service providers.
Consultation With Stakeholders
As it pertains to CIC reporting, a stakeholder is an individual who has benefited from your company’s activities. Each year, you’ll need to relate how you consult with stakeholders to the Regulator.
Firstly, you’ll need to provide a brief overview of your stakeholders. Next, you’ll recount how you consult with stakeholders. You’ll also highlight how your organisation has responded to the results of that consultation.
CICs must also report all directors’ annual remuneration. Schedule 3 to Small Companies and Groups Regulations 2008 offers more information about this requirement. The schedule applies to companies subject to the “small companies’ regime.”
Here, you must provide some information regarding your annual accounting. For example, you might record the total amount of remuneration paid to directors. You’ll also report any retirement benefits paid to directors and other remuneration-related information.
Transfers of Assets Other Than for Full Consideration
CICs can only transfer assets for amounts other than full consideration. In other words, the asset must transfer at less than market value.
However, there are a couple of more stipulations regarding this matter. For example, the transfer must go to an equivalent organisation outside of Great Britain.
However, a CIC might receive approval for the transfer if the transaction doesn’t meet this requirement if the transfer benefits the community. In this case, the Regulator must approve the transfer.
For the purposes of the CIC34 report, you’ll need to describe the amount of the transfer or its estimated value. If you make a transfer to a non-equivalent organisation, you’ll need to highlight how the transfer will benefit the community, as well as several other details.
Next, you’ll need to complete two sections regarding financial information about the CIC. However, you must always remember to complete the signatory section.
A director or secretary must sign the original CIC report. You’ll keep the original report for your records. Meanwhile, you’ll forward a copy of the CIC report to the Registrar of Companies in your area.
The contact information for this section is not mandatory. Still, it’s helpful if the registrar of companies needs to contact you for further information. However, remember that the Regulator will publish the contact information you submit for the CIC34 for public viewing.
CIC34: Community Interest Company Report Consulting
Now you know more about managing the annual community interest company report. At first glance, the CIC34 report might look quite straightforward. However, organisations of all sizes can benefit from professional consulting for annual CIC administration and tax reporting.
Fulfilling CIC34: community interest company report requirements can prove challenging. However, missing the deadline can result in unfortunate penalties. KG Accountants can help you to ensure that you complete CIC reporting requirements accurately and on time.
All our fees are fixed.
By giving you a fixed and competitive price, we can take the worry away when it comes to preparing the statutory Accounts and Tax returns; allowing you to concentrate on running your business!
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