Comparison of frameworks

Organisational FrameworkLiable bodyWho has the control?Who can be paid for administrative work?Accountability:
Record keeping and filing
Tax liabilityAble to attract charitable funding?
Ltd CompanyCompanyDirector(s),
(can be an individual)
Directors can be paidAccounts:
Filed with Companies House  
Tax return:  
Filed with HRMC  
20% tax on profitsNo
Community Interest Company CICCICDirector(s),
(can be an individual)

Shareholders / members where applicable
Directors can be paidAccounts
CIC report:

Filed with Companies House  
Tax return:  
Filed with HRMC  
20% tax on profitsSome
Charitable Incorporated Organisation CIOCIOTrustee(s),
(can be an individual)

Members where applicable
Trustees cannot normally be paidAccounts
Trustees’ report
Annual return:

Filed with Charity Commission
Not liableYes
‘Charity’ with Ltd CompanyCharityTrustees

Members where applicable
Trustees cannot normally be paidAccounts
Trustees’ report
Annual return
:
Filed with Charity Commission  

PLUS
Business accounts
Tax return
:
as above
Charity not liable            



The Company has to donate all profits to the charity and therefore would not pay taxes.
Yes
Unincorporated AssociationYourselvesYourselvesNot possibleMinimal accounts
No filing
n.a. as no profitsSome

If you think your group will earn a lot of assets, please remember the asset lock that applies to CICs and charities.