Restricted funds
An appeal for a minibus, a grant for a youth club: each is tracked on its own and spent only on what it was given for.
Charities · Community interest companies
Accounts for charities and CICs, right from the start
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Who you report to, what you may do and how your grants are taxed are all decided early, often by a line in your constitution. We help you get it right at the start, then keep your accounts, grants and filings in order every year.
£320Nil accounts
£600Charity accounts
£1,030Trading CIC, from
Fixed fees, including VAT
Before you register
Talk to us before you write your constitution
Every line of your governing document ends up in your accounts. A short conversation at the start saves amendments, re-registrations and wasted fees later.
- 1Your objects decide which income counts as charitable or non-profit, and which does not.
- 2Your powers decide whether you can trade, employ, pay trustees or hold property.
- 3Your structure decides who you report to: the Charity Commission, Companies House, the CIC Regulator and HMRC.
- Book a consultation before you register
Two very different structures
Charity or CIC: what each must do
Both exist for the public good. Their rules, reporting and tax are not the same, and mixing them up is costly.
Charity
- Registers with the Charity Commission and gains charitable status
- Cannot pay out profits to its founders
- Trading limited to its charitable purposes, or through a trading company
- Usually no Corporation Tax on charitable income
- Annual accounts, and an independent examination above the income threshold
Community interest company
- A limited company with an asset lock, overseen by the CIC Regulator
- Often funded by grants, and free to trade commercially
- Files accounts and a CIC34 community interest report at Companies House
- Pays Corporation Tax on its profits
- Can be, or may have to be, registered for VAT
The most common mistake we see
A grant is not all income on the day it arrives
A 12-month grant received just before your year end is often booked as income in full. The spending has not happened yet, so the accounts show a large profit, and a CIC can end up paying Corporation Tax on money it has not used.
- Under accounting standards, a grant is matched to the period it pays for
- The unspent part is carried forward, as deferred income or a restricted fund
- It is released to income as the project runs
Try it: when does your grant count?
Simplified illustration assuming even spending over the project. Grant conditions and your accounting framework decide the exact treatment; Corporation Tax shown at the 19% small profits rate.
What many organisations miss
Money raised for a purpose must be spent on that purpose
Every appeal, grant and project needs its own income and costs. For a charity this is a legal duty: money given for a stated cause is a restricted fund, and spending it on anything else is a breach of trust.
One project, one ledger
Income and costs recorded against each project, so you always know what is left, and what can still be spent.
Ready for funders
Clear figures for every grant report, and the proof funders, trustees and regulators ask for.
Try it: can we spend it on this?
We raised £5,000 in an appeal for a new minibus. Can we use £1,000 of it to pay this month's rent?
No. The appeal money is restricted to the minibus. Using it for rent, even for a month, is a breach of trust unless the donors agree or your rules allow it. Rent is paid from unrestricted funds.
A council grant funds our youth project. Can part of our coordinator's salary be charged to it?
Yes, if the coordinator really works on that project and the grant terms allow staff costs. Record the time and the share of salary against the project, so you can show it in your grant report.
Our CIC sells workshops and also has a grant. Can we keep everything in one pot?
Better not. Trading income is taxable and may count towards VAT, while the grant must be shown against the project it pays for. Separate records keep your tax right and your funders happy.
How we work with you
From your constitution to every filing
Whether you come to us once a year or every month, the same care goes into your figures.
- 1
Consultation
We look at your structure, your governing document, your funding and your plans.
- 2
The right set-up
Registrations with HMRC, VAT if needed, and advice on what your structure allows.
- 3
Funds and projects
Each project, appeal and grant tracked separately, and matched to the period it pays for.
- 4
Monthly or year end
Ongoing bookkeeping, or year-end accounts from your own records.
- 5
You approve
We go through the accounts with your directors or trustees before anything is filed.
- 6
Filed everywhere
Companies House, HMRC, and the Charity Commission or CIC34, on time.
Year-end only · fixed fees including VAT
Year-end accounts prices
For organisations that keep their own records during the year. Consultations and other one-off work are quoted separately.
A charity, CIC or company with no activity in the year: accounts prepared, verified and filed.
An active charity filing annual accounts, with no Corporation Tax return.
Accounts, Corporation Tax return and confirmation statement. More transactions, a higher fixed fee, agreed before we start.
Monthly support · annual agreement
Or let us look after you all year
The same fair formula as for our limited companies, with your year end included. You get a chat in your client portal, your own WhatsApp group and answers when you need them.
A transaction is every line on your statements, money in and money out: bank, card, Wise, PayPal, Stripe and marketplace payouts. Not sure? A typical small business with 2–3 card payments a day has around 50–80 transactions a month across all accounts.
Your estimated monthly fee, including VAT
£250
This is an estimate based on your answers. Your accountant will confirm the exact fee in a free 15-minute Zoom meeting, once we have looked at your records.
Book a free Zoom meetingQuestions
Charity and CIC questions
Scroll over them, use the arrows or select a question.
Yes, on its profits. A community interest company is a limited company: it files accounts and a CIC34 community interest report at Companies House, a Corporation Tax return with HMRC, and it can be VAT registered. Many CICs only find this out after they have started trading.
A grant is income for the period it pays for. If you receive a 12-month grant in December and your year ends in April, only the part that relates to December to April normally belongs in this year; the rest is carried forward as deferred income, or held as a restricted fund in a charity. Booking the whole grant at once can create a tax bill on money you have not yet spent.
A charity cannot pay out profits to its founders, and trustees are normally unpaid unless the governing document allows otherwise. Trading is restricted to activities that serve the charity's purposes, or carried out through a separate trading company. We help you plan this before it becomes a problem.
Because what you write about your objects, income and powers decides how your income is treated, what you may do and how your accounts must be kept. A conversation at the start saves amendments, re-registrations and extra costs later.
Yes. A charity must spend money given for a stated purpose only on that purpose, and show it in its accounts as a restricted fund. CICs and charities alike need project-by-project figures for their funders. We set up your records so every project, appeal and grant has its own income and costs from day one.
Charities above the income threshold need their accounts independently examined. Tell us your income and we will confirm what your charity needs and quote before we start.
The same as for our limited companies: bookkeeping, VAT, payroll, pensions and your year-end accounts, with a chat in your client portal and your own WhatsApp group. Grants and restricted funds are tracked properly every month.
Yes. Dormant and nil accounts still have to be filed on time. We prepare and file them for £320, including VAT.
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Guidance on the Charity Commission and the CIC Regulator on GOV.UK.
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Guides
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Plain-English guides by our accountants on the questions clients ask us about this service.
