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Posted Sat, 21 Dec 2024 21:41:39 GMT by voluntree
Hi, I run a very small community interest company and have a question about filing with HMRC. We have finished the first year of trading and during that time we have only 21 transactions to report: - 11 unrestricted donations received that make a total of 732 GBP (We believe these constitute a non-trading profit) . - 10 payments to software services providers and the companies house (confirmation statement) totaling 72 GBP (These are our operating costs). This leaves us with 660 GBP in our bank account. This is the money that we will carry on using to meet our community interest goals. Note that we have no assets and no employees, our directors work as volunteers. Filing with the companies house was straight forward using their online service. The problem we have is that we cannot use HMRC online filing because according to their website we cannot do that if we have non-trading income. We believe that the donations that we received are non-trading income as we didn't provide any service or product in return for those donations. They are unrestricted and it is our understanding that they should therefore be tax exempt. Are our assumptions here correct? How are we meant to file our accounts to the HMRC? The HMRC web filing is forwarding us onto a page that lists accounting software that are able to do the filing, but those cost way more than we can afford. Seems like our options are to pay at least 400 GBP to an accountant or for an accounting software, this would constitute 60% of all the money we have left. On the other hand if non-trading income was taxable like trading income then we would be able to file using the HMRC online filing service and pay corporation tax which would come out as "only" 125 GBP (19% of 660). Any feedback here would be much appreciated.
Posted Thu, 09 Jan 2025 15:20:37 GMT by HMRC Admin 20 Response
Hi,
I would suggest you look at our web page Corporation Tax: trading and non-trading            
If this does not answer your question in full, then it woud be advisable to write to us with the full facts of your case, to allow us to determine if an exemption to file, may or may not be granted.  
You  can write to us at
Corporation Tax Services
HMRC,
BX9 1AX    
Thank you. 

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