Almost 90% of companies in Ireland maintain a financial year end of 31 December year on year. This results in that company’s optimum annual return date occurring around this time of year which may affect you and your company!
Most companies in Ireland operate as private limited companies and as a privilege of enjoying the protection of limited liability must file it’s financial statements with an annual return once in every calendar year to remain compliant. This obligation should not be confused with the additional obligation under tax law for a company to file it’s accounts via it’s corporation tax return on ROS.
How is the Annual Return Date Calculated
A company is granted it’s annual return date on set up which is calculated to six months after the incorporation date of a company. Often this is subsequently amended to work with the company’s financial year end. The Companies Act 2014 allows a period of nine months between the financial year end and it’s annual return date. Therefore the optimum annual return date in relation to a year end of 31 December 2016 is 30 September 2017 which is now upon us.
What if I miss my annual return date and filing deadline:
The consequences of missing your financial accounts and annual return filing deadline can be expensive for a company and may lead to the unfortunate case of losing the right to avail of audit exemption for period two years. In effect, this will result in the company having to have it's financial statements audited no matter how small the company is.
We’re here to help
We at LK Shields would be happy to ensure your annual return date and deadline is optimum for you and allows your financial statements sufficient time for preparing and finalising. In the event that you have already lost your audit exemption from late filings of annual returns we may also be able to assist you to allow your right to audit exemption to be restored. Please contact us for further information.
That the old style of filing your annual return is a thing of the past and the form must now be filed electronically. Let us know if you require any help with filing your annual return electronically. We covered this item our last quarterly newsletter, see here.