Advice on annual returns

The Mooche

Hi,

A friend and I set up a company in 2007. I filed returns after six months which gave us another year before we needed to file returns with accounts. That date is fast approaching. We haven't actually traded as such since then, although we have had expenses.

It's an internet startup which hasn't taken off as well as we'd hoped financially, but we're not really ready to wrap it up unless it makes more sense. I don't mind the expenses too much but would like to find out what I need to file with the second returns. I've read the various threads and the CRO site but am still unclear about exactly what they need.

Do we need to supply any accounts? Neither of us is an accountant so we probably would have to get these done. Do we need to supply audited accounts? Is there any way we can just declare that we haven't traded and file simpler returns online as I did last year?

Would it make more sense to terminate the company? We're not incredibly committed to keeping it going if it will be very expensive to get audited returns done. I know there are requirements on advertising the strike off, but is that it? Are there charges associated with the process?

Thanks for your help.

JoeTurner

Once you file in time to meet your Annual Return deadline you won't need audited accounts. If you miss your annual return deadline then the Companies Office can request that you provide audited accounts for the next couple of years.

Getting accounts prepared by an accountant, as opposed to getting accounts audited, should be relatively cheaper as the accountant is not required to provide an opinion on the accuracy of the accounts.

Hope that helps

Joe

pd2006

Hi ya

Your accounts if filed on time will not need to be audited and should be straight forward to complete. Also if you think you will miss the ard why dont you change the ard date by submitting a b1 with no accounts and b73 and it will give you an extra 6mths to submit your returns, which will give you plenty of time to get your accounts sorted.

pm me if i can be of any more help to you

regards
p

MartMax

Just a head up i.e. general rule... make sure when u r extending youur ARD, the ARD must not be more than 9 months after your accounting period. For eg. if your ARD is 30 Sep 2009, the accounting period should end no later than 31 Dec 2008.

The Mooche

I didn't realise I could extend the date again. Just looking at the B73 form now. So I just have to file a B1 form the same as I did last year (ARD is mid March) and I can extend the time allowed before we need to submit accounts for another six months? Does that hold true if we've never submitted any accounts since the company was formed 18 months ago? Just wondering how the nine month rule affects us if I extend. So we would be able to file another return in six months and attach accounts to that instead?

That seems to be what this paragraph implies:

"New companies are due to file accounts with their second annual return, which return is required to be made up to a date not later than 18 months post-incorporation, unless the company alters its ARD. Such companies may extend their ARD using Form B73 procedure outlined above. Form B73 ought not to be filed with the company's first annual return, as the effect of this is to shorten the time allowed to the company before it has to file accounts with its annual return."

Thanks very much for all your advice. I might just go ahead and get them done this time as there shouldn't be too much work involved in preparing the accounts.

accas

Here is an useful website for new company directors: www.cro.ie.

The Mooche

Yeah - I'm pretty familiar with the CRO site. Nice people working there, actually.

cosecretary

The information in this message is given without any liability for the contents thereof

Hi

Just a few things to bear in mind when extending your ARD:-
Can only extend a maximum of six months
Can only extend once in every five years
Can be no more than nine months between financial period end and newly nominated annual return.
In order to extend you must file annual return b1 and b73 before filing deadline ie within 28 days of ard

If you advise your current ard and the financial period end you wish to take I can tell you how achieve to optimum annual return date.

Please ensure that annual returns are file on time if not you will lose audit exemption for that year and the next year. If you do intend to claim audit exemption such decision should be noted at a board meeting and such meeting should be minuted. The board meeting should be held before period end of financial statements.

To be honest in these situations unless you are completley certain that you are going to use the company in the very near future I would advise that you strike off the Company as it will save you annual fees in long run. If you decide in the future you could always set up a new company very cheaply (approx €300.00) again.

The strike off process is simple:

Hold a board meeting, note that the company has ceased trading or has never traded and does not intend trading in the future, has no assets and liabilities and resolve to seek a letter of no objection from revenue.

You will need to write to the companies unit in revenue and request a letter of no objection to the strkining off of the company. They will process your request and check that there are no outstanding taxation matters. This can take a few weeks and providing that they have no issues they will send you a letter of no objection. Once you get this you will need to place advertisement in national newspaper (daily mirror or other tabloid generally the cheapest). You can get sample wording for the notice on cro website under business termination.

You will then need to send a letter to CRO requesting that the company be struck off the register, you will need to enclose letter of no objection and the full page from the newspaper containing your advertisement.

Hope this helps if ya need any clarification let me know!