What is it?
A Co-operative Society (CS) is a registered society that is able to distribute its surpluses to its members. The members may be its customers (a consumer co-operative) or its staff (a worker co-operative), or any other defined stakeholder group. It has limited liability. A CS is controlled democratically by its members on a one member, one vote basis, even if some members have more shares than others.
Unlike other structures, registered societies including CSs are exempt from the Financial Services and Markets Act 2000, which means they are able to seek social investment direct from the public in the form of loan stock or shares.
- What are the accounting and filing requirements?
- Accounts need only comply with the FRSSE.
- Accounts need to be filed with the Financial Conduct Authority within 7 months of the year end, together with form AR30.
What are the tax implications?
- Must register for VAT if making taxable supplies over the threshold.
- Must file a corporation tax return.
- If a registered society pays interest to a creditor or member who is an individual, it need not deduct tax, but must make a return of interest paid within 3 months of its year end (S887 Income Tax Act 2007).
Slade & Cooper services
- Preparation of accounts and accountant’s report or audit exemption report
- VAT advice so you know when registration might be necessary, and can deal with any partial exemption and outside the scope issues.
- Corporation tax returns and iXBRL tagging of the accounts
- Payroll bureau