CIC Co

[The Dazzler]

HI,

I run a C IC and we hold an annual music festival, its been cancelled for this year but we have a surplus amount of money due to ticket sales , some will be refunded a lot will be carried forward to next year.

Will we have to pay Corporation tax on this surplus or can we also carry this forward to next year.

Thanks

[robbob]

The default for most CIC's is that corporation tax is charged similar to any other trade, note if there is loss following year that could be carried back to reduce the tax charged - so it can be a here today gone tomorrow thing.


I would say if you have prepaid sales that relate to an event in a future accounts year then under normal accounting principles you would normally take out the prepaid sales from this years accounts sales total and move to the year when the event was taking place. That may make the problem go away.

[The Dazzler]

The default for most CIC's is that corporation tax is charged similar to any other trade, note if there is loss following year that could be carried back to reduce the tax charged - so it can be a here today gone tomorrow thing.


I would say if you have prepaid sales that relate to an event in a future accounts year then under normal accounting principles you would normally take out the prepaid sales from this years accounts sales total and move to the year when the event was taking place. That may make the problem go away.

Many thanks for the reply.