Are you struggling to manage your company’s annual compliance while balancing the demands of running your business? The Annual Return Date (ARD) is a critical deadline for every company in Ireland, requiring careful preparation and timely submission of your annual return.
Extending your ARD can provide much-needed flexibility, especially when dealing with unexpected circumstances or complex filings. It ensures that your company stays compliant with Irish regulations without the stress of rushing through documentation.
In this blog, we will explore what is ARD and how to extend Annual Return date in Ireland, the benefits of doing so, and guide you through the process step by step.
What is ARD and How to Extend Annual Return Date in Ireland?
The Annual Return Date (ARD) is a key deadline for companies registered in Ireland, requiring the submission of an annual return to the Companies Registration Office (CRO).
This return provides vital information, including financial statements, shareholder details, and confirmation of the registered office. Failing to meet the ARD can lead to significant penalties, interest charges, and even legal repercussions, such as the company being struck off the register.
Extending the ARD offers a practical solution, giving businesses additional time to compile accurate documentation, address unexpected delays, and avoid non-compliance issues.
For companies managing complex operations or busy periods, this extension can be a lifeline, ensuring compliance without unnecessary stress.
How to Extend ARD in Ireland?
Extending your company’s Annual Return Date (ARD) in Ireland is a process governed by the Companies Act 2014. To facilitate this extension, companies must follow specific guidelines set by the Companies Registration Office (CRO).
Below is a comprehensive overview of the steps and conditions involved:
Eligibility and Frequency
A company may extend its ARD by up to six months by filing a Form B1/B73 electronically with the CRO. This extension is allowed only once every five years.
Timely Submission
The Form B1/B73 must be filed on time, aligning with the company’s current ARD.
Specifically, it should be submitted within 56 days following the ARD or earlier if the company chooses to file its return ahead of schedule. Forms submitted beyond this 56-day window will not be accepted.
Filing Process
Form B1/B73 is a single submission that can be completed through the CRO’s online platform, CORE.
It’s important to note that this form cannot be filed in conjunction with the company’s first annual return after incorporation, as doing so would reduce the timeframe available for submitting the first full annual return with financial statements.
Financial Year Considerations
When extending the ARD, ensure that the new date does not result in a period exceeding nine months between the end of the previous financial year and the new ARD.
This precaution maintains compliance with statutory financial reporting timelines.
Post-Filing Verification
After submitting the Form B1/B73, it’s crucial to verify that the CRO has registered the extension and updated the ARD accordingly.
Failure to confirm this update could lead to missed filing deadlines, incurring late filing penalties, and the potential loss of audit exemption.
What Are the Consequences of Missing Your Annual Return Date (ARD)?
Failing to file your annual return with the ARD can have serious repercussions for your company, ranging from financial penalties to severe legal consequences.
Here is the breakdown of the potential outcomes:
Late Filing Fee
Missing the ARD triggers a late filing fee of €100 the day after the filing deadline, which is 56 days after the effective return date.
Additionally, a daily fee of €3 accrues until the maximum fee of €1,200 per return is reached. This fee is imposed alongside the standard filing fee of €20. It is important to note that late filing fees are not tax-deductible, making the financial impact even more significant for businesses.
Prosecution
For companies with a history of persistent late filings, the Companies Registration Office (CRO) may impose on-the-spot fines.
Furthermore, summary prosecution can be initiated against the company and its officers. Upon conviction, fines of up to €5,000 can be imposed for breaching the annual return filing requirements, adding significant legal and financial pressure.
Strike-Off
If a company fails to file its annual return, it may be struck off the register and dissolved. This means the company’s assets become vested in the Minister for Public Expenditure.
Additionally, business owners lose the protection of limited liability, becoming personally responsible for any debts incurred during the period of dissolution.
Directors may also face disqualification by the High Court if the company is struck off with outstanding liabilities, further impacting their ability to operate within the corporate sector.
Audit Exemption
Missing the ARD has lasting consequences on a company’s audit exemption eligibility. If the previous year’s annual return was not filed on time, the company loses its audit exemption for the current year.
Moreover, a late filing this year results in a loss of audit exemption for the following two years, creating additional compliance burdens and costs.
Conclusion
Understanding what is ARD and how to extend Annual Return date in Ireland is crucial for companies in Ireland to maintain compliance, avoid penalties, and secure operational flexibility.
By filing Form B1/B73 within the specified timeframe and following the guidelines set by the Companies Registration Office (CRO), you can extend your Annual Return Date and prevent costly consequences such as late filing fees, prosecution, strike-offs, and loss of audit exemption. Managing this process efficiently ensures your business stays on track with its regulatory obligations.
At Peak Accounting, we specialise in company compliance services, including ARD extensions, to help you focus on growing your business without the stress of regulatory challenges. Contact us today to ensure your company remains compliant and to get expert assistance with extending your ARD.
Frequently Asked Questions
What is an Annual Return Date (ARD)?
The ARD is the date up to which a company’s annual return is made. It determines the deadline for filing the annual return with the Companies Registration Office (CRO). Timely filing is crucial to avoid penalties and maintain compliance.
How can a company extend its ARD?
A company can extend its ARD by up to six months by filing Form B1B73 electronically with the CRO. This form must be submitted within 56 days of the current ARD or earlier if aligning with the return date. It’s important to note that this extension can only be availed of once every five years.
What are the consequences of not filing the annual return on time?
Failing to file on time can result in a late filing fee of €100, plus €3 for each additional day, up to a maximum of €1,200 per return. Persistent late filing may lead to prosecution, fines up to €5,000, and even the company being struck off the register.
How does extending the ARD affect the financial year-end?
When extending the ARD, ensure that the new date does not result in a period exceeding nine months between the end of the previous financial year and the new ARD. This maintains compliance with statutory financial reporting timelines.
Is it possible to change the ARD more than once?
A company can extend its ARD by up to six months once every five years by filing Form B1B73. However, a company may also bring forward its ARD by filing an early annual return and indicating the change on Form B1. This method does not have the five-year restriction.
What should be done after filing Form B1B73?
After filing Form B1B73, it’s crucial to verify that the CRO has registered the extension and updated the ARD accordingly. Failure to confirm this update could lead to missed filing deadlines, incurring late filing penalties, and the potential loss of audit exemption.
