4 ms·

Assuming you regard the cost of keeping and filing accounts and other paperwork, annual registration fees, etc. as negligible yes.

jimnotgym 2y ago
Keeping accounts: cost, depends on if you make any money. If you do then you would have to keep accounts even if not a CIC! Filing accounts: £15. An online form will ask you for your balance sheet summary only unless you are very large. One off registration:£65 Annual confirmation statement:£34 So depends on your perspective I suppose.
- graemep 2y ago
  There are plans to remove the small company p & l exemption and new rules on verifying directors ids. Costs are going up too. It looks like a CIC you can only file online if full accounts. https://find-and-update.company-information.service.gov.uk/accounts/cic/before-you-start https://find-and-update.company-information.service.gov.uk/a... You have to keep accounts if a business even if not incorporated. A company has to keep accounts if it has any assets (e.g. a domain) or any financial transactions (e.g. paying for hosting) You will also probably have to file a tax return. You have to keep a register of shareholders. In fact if definitely not making a profit a standard ltd might be simpler (or maybe a company limited by guarantee) then a CIC as all a CIC does it add restrictions and extra regulation https://assets.publishing.service.gov.uk/media/5a7b800640f0b645ba3c4bbc/10-1388-community-interest-companies-benefits-of-a-cic-leaflet.pdf https://assets.publishing.service.gov.uk/media/5a7b800640f0b...
  - jimnotgym 2y ago
    >You have to keep accounts if a business even if not incorporated Indeed, so this cost is not relevant to the decision to set up a CIC or not
    - graemep 2y ago
      It is relevant this case. The thread is about moving an activity that is not a business to a company (and for some reason a CIC in particular). If you did it in your own name you would not have to keep accounts.
      - foldr 2y ago
        As jimnotgym explained, you don't have to 'keep accounts' in any onerous sense. You just need to keep a rough track of the business's income and expenses (which any sensible person would be doing anyway). No-one at HMRC is going through the accounts of very small businesses with a fine tooth comb. You just tell them how much money you made and pay the taxes on it.
        graemep 2y ago
        > You just need to keep a rough track of the business's income and expenses (which any sensible person would be doing anyway We are not talking about a business here. The whole problem is that these are things that people are doing as essentially voluntary work. What your saying would be true in a different context, but this is not business. I do not know whether you find it hard to grasp that some people will put a lot of effort into something for motives other than profit.
        foldr 2y ago
        Right, so the 'accounts' are correspondingly simple. Essentially just a list of things the company has purchased.

jimnotgym 2y ago

Keeping accounts: cost, depends on if you make any money. If you do then you would have to keep accounts even if not a CIC! Filing accounts: £15. An online form will ask you for your balance sheet summary only unless you are very large. One off registration:£65 Annual confirmation statement:£34 So depends on your perspective I suppose.

graemep 2y ago
There are plans to remove the small company p & l exemption and new rules on verifying directors ids. Costs are going up too. It looks like a CIC you can only file online if full accounts. https://find-and-update.company-information.service.gov.uk/accounts/cic/before-you-start https://find-and-update.company-information.service.gov.uk/a... You have to keep accounts if a business even if not incorporated. A company has to keep accounts if it has any assets (e.g. a domain) or any financial transactions (e.g. paying for hosting) You will also probably have to file a tax return. You have to keep a register of shareholders. In fact if definitely not making a profit a standard ltd might be simpler (or maybe a company limited by guarantee) then a CIC as all a CIC does it add restrictions and extra regulation https://assets.publishing.service.gov.uk/media/5a7b800640f0b645ba3c4bbc/10-1388-community-interest-companies-benefits-of-a-cic-leaflet.pdf https://assets.publishing.service.gov.uk/media/5a7b800640f0b...
- jimnotgym 2y ago
  >You have to keep accounts if a business even if not incorporated Indeed, so this cost is not relevant to the decision to set up a CIC or not
  - graemep 2y ago
    It is relevant this case. The thread is about moving an activity that is not a business to a company (and for some reason a CIC in particular). If you did it in your own name you would not have to keep accounts.
    - foldr 2y ago
      As jimnotgym explained, you don't have to 'keep accounts' in any onerous sense. You just need to keep a rough track of the business's income and expenses (which any sensible person would be doing anyway). No-one at HMRC is going through the accounts of very small businesses with a fine tooth comb. You just tell them how much money you made and pay the taxes on it.
      - graemep 2y ago
        > You just need to keep a rough track of the business's income and expenses (which any sensible person would be doing anyway We are not talking about a business here. The whole problem is that these are things that people are doing as essentially voluntary work. What your saying would be true in a different context, but this is not business. I do not know whether you find it hard to grasp that some people will put a lot of effort into something for motives other than profit.
        foldr 2y ago
        Right, so the 'accounts' are correspondingly simple. Essentially just a list of things the company has purchased.