Hi,
We have starting acting for a company Limited by Guarantee (the company provides after school care and holiday clubs for the local primary school). The company has recently started making reasonable profits and I believe CT will be due as per a normal company on these. Could anybody confirm that is the case? Are there any exemptions to this? I believe we will need to look at charitable status in order to avoid CT becoming due?
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What do the company's articles say about surpluses? What happens to them?
What are the company's objects, and how much is the surplus?
You get better flight information oit of RyanAir, to be frank.
As far as I am aware, excepting the structure a limited by guarantee company will have to pay corporation tax as usual if it trades.
It can't pay dividends, but that's it (which begs the question of how the owners will get money out if it is profitable - or is it going to gift away all it's money).
If you're going for charitable status, form one of these new-fangled CIOs. Not a CA2006 company.
No. They don't have charitable status yet.
But, if they did, it's easier to just form a new CIO than convert a CA2006 company to CIO. In fact, it's not possible at all in E+W at the moment, though it's coming.