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[LUG]Re: Lug funds

 

I think Helen is right, you need the simplest organisation available from what I can 
see your needs are. I think that since 2020, you will still need to register with 
HMRC.

From my experience setting up a Ltd 15 years ago I found that the companies house / 
VAT registration was particularly easy, and I was able to complete and get all the 
paperwork / bank accounts to function with a week or so at minimal cost.
Having said that, when I wound down operations, it took me 2 years to dissolve the 
Ltd, and cost considerably more to do so and I still need to wait another 2 years 
before I can dispose of the company's paperwork and consider that part of my life 
complete.

So not something you will want to enter into lightly.

-----Original Message-----
From: Helen McCall <helen.wildnfree@xxxxxxxxx> 
Sent: 13 October 2025 14:30
To: list@xxxxxxxxxxxxx
Subject: [LUG]Re: Lug funds

Dear All,

We do not need to be either a charity or a CIC. Either of those options involves a 
lot of work and unnecessary expense.

All we need to do is to establish a Legal Entity as a simple Community Association 
or Club. I outlined that nice simple system in my first email. Once we have 
established a simple Legal Entity, we can open a bank account. The ownership of the 
Legal Entity should be the Membership in Perpetuity.

Helen McCall

On Mon, 13 Oct 2025 13:44:56 +0100
Henry Bremridge via list <list@xxxxxxxxxxxxx> wrote:

> On Mon, Oct 13, 2025 at 09:55:27AM +0100, Julian Hall wrote:
>  
> > Hi All,
> > 
> > Rather than a full charity what about a Community Interest Company?
> > (CIC) The bar is lower for a CIC than a charity, albeit you do need 
> > to register the names and details of Directors with Companies House.
> >   
> 
> https://www.gov.uk/government/publications/community-interest-companie
> s-how-to-form-a-cic/community-interest-companies-guidance-chapters
> 
> When deciding on the CICs activities you should consider the
> following:
> 
>     What activity do you want to undertake and how will it benefit the 
> community? Who will be the owners, managers, directors, shareholders 
> or guarantors? How will it be funded?
>     How will the surpluses or profits be used?
>     Will you be engaging in any campaigning or political activities?
> (Companies involved in these activities are not eligible to become
> CICs) Who will be nominated as the asset locked body in your Articles 
> of Association? Will being a company with limited liability, a 
> mandatory Asset Lock, extra reporting requirements and designed for 
> social enterprise suit your needs?
> 
> 
> https://www.gov.uk/prepare-file-annual-accounts-for-limited-company
> 
> While it does not say an accountant has to prepare the accounts for 
> CIC, it does say that
> 
> Statutory accounts must include:
> 
>     a ‘balance sheet’, which shows the value of everything the company 
> owns, owes and is owed on the last day of the financial year
> 
>     a ‘profit and loss account’, which shows the company’s sales, 
> running costs and the profit or loss it has made over the financial 
> year
> 
>     notes about the accounts
> 
>     a director’s report (unless you’re a ‘micro-entity’)
> 
> You might have to include an auditor’s report - this depends on the 
> size of your company.
> 
> The balance sheet must have the name of a director printed on it and 
> must be signed by a director. Accounting standards
> 
> Your statutory accounts must meet either:
> 
>     International Financial Reporting Standards
> 
>     New UK Generally Accepted Accounting Practice
> 
> IF DCGLUG goes this route, I presume the directors will want an 
> accountant to sign off to ensure that these standards are met. There 
> goes what £500 a year? Certainly more than £200
> 
> 
> 2025-10-13 13:41:35
> 
> 

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