If you have recently formed a company in Ireland, you may be wondering how to file your first annual return. Filing an annual return is a legal obligation for every company registered in Ireland, and it is important to do it correctly and on time.
In this guide, we will explain what an annual return is, why it is important for your company, when and how to file it, what financial statements are required, how to avoid common mistakes and penalties, and how Peak Accounting Solutions can help you with your annual return filing.
What is an annual return?
An annual return, also known as Form B1, is a document that every company registered in Ireland must file with the Companies Registration Office (CRO) every year. It contains information about your company’s structure, activities, and finances, such as:
- The company name and number
- The registered office address
- The names and addresses of the directors and secretary
- The names and addresses of the shareholders and their shareholdings
- The date of the last annual general meeting (AGM)
- The financial statements for the relevant financial year
why Annual return is important for your company?
Filing an annual return is important for your company because:
- It ensures that the CRO has up-to-date information about your company and its activities
- It helps to maintain the transparency and accountability of your company to the public and other stakeholders
- It enables your company to comply with the Companies Act 2014 and other relevant legislation
- It prevents your company from being struck off the register or facing fines or penalties
When and how to file your first annual return: The deadlines, the online process, and the fees
The deadline for filing your first annual return depends on when your company was incorporated. According to the CRO, your first annual return date (ARD) is six months after your date of incorporation. For example, if your company was incorporated on 1 January 2023, your first ARD is 30 June 2023. However, you do not need to attach financial statements to your first annual return, as they are not required for the period from incorporation to the first ARD.
The deadlines
The deadline for filing subsequent annual returns is 56 days after the ARD. You must also attach financial statements to your second and subsequent annual returns, covering the period from the previous ARD to the current ARD.
Online process
The CRO has an online filing system called CORE (Companies Online Registration Environment), where you can file your annual return electronically. To use CORE, you need to register as a user and create an account. You can then log in to CORE and complete the Form B1 online. You will need to provide the following information:
- The company number
- The ARD
- The date of the last AGM
- The details of the directors and secretary
- The details of the shareholders and their shareholdings
- The confirmation that the financial statements are attached (if applicable)
The fees
You will also need to pay a filing fee of €20 online using a credit or debit card. Once you have completed the Form B1 online, you will receive a signature page by email. You need to print this page, sign it by one director and one secretary (or two directors), and send it to the CRO within 56 days of filing online. You also need to send a copy of the financial statements (if applicable) along with the signature page.
How to avoid common mistakes and penalties when filing your annual return: The best practices, the corrections, and the consequences
Filing your annual return correctly and on time is crucial for your company, as it can avoid common mistakes and penalties that may affect your company’s reputation, finances, and legal status. Here are some tips on how to avoid common mistakes and penalties when filing your annual return:
- Check your ARD and mark it on your calendar. Make sure you file your annual return within 28 days of your ARD, and send the signature page and the financial statements (if applicable) within 56 days of filing online.
- Review your company information and update it if necessary. Make sure you provide accurate and complete information about your company’s name, address, directors, secretary, shareholders, AGM, and financial statements.
- Use CORE to file your annual return online. This can save you time and money, as well as reduce the risk of errors or omissions.
- Keep a copy of your annual return and your receipt for future reference. This can help you to verify that you have filed your annual return correctly and on time.
- Seek professional advice if you are unsure about any aspect of your annual return filing. You can consult an accountant, a solicitor, or a company formation agent for guidance and assistance.
Consequences of fail to file your annual return
If you fail to file your annual return correctly or on time, you may face serious consequences, such as:
- A late filing penalty of €100 plus €3 per day for every day that the annual return is late
- A loss of audit exemption for two years for small and medium-sized companies
- A prosecution by the CRO or the Office of the Director of Corporate Enforcement (ODCE) for breaching the Companies Act 2014
- A strike off from the register or a dissolution of your company by the CRO
Therefore, it is essential to file your annual return correctly and on time to avoid these consequences.
Contact Peak Accounting Solutions today for a free consultation and annual return Filing
If you are looking for a trusted and experienced accounting firm that can help you with your annual return filing, look no further than Peak Accounting Solutions. We are here to help you with all your accounting needs and make your life easier. Contact us today and let us take care of your annual return filing for you.
You can call us at 01 234 5678 or email us at contact@peakaccountingsolutions.ie. You can also visit our website at https://peakaccountingsolutions.ie/ to learn more about our services.
Frequently Asked Questions
What is the difference between an annual return and a tax return?
An annual return is a document that contains information about your company’s structure, activities, and finances, which you must file with the CRO every year. A tax return is a document that contains information about your company’s income, expenses, and taxes, which you must file with the Revenue Commissioners every year.
What happens if I miss my ARD or file my annual return late?
If you miss your ARD or file your annual return late, you may face the following consequences:
- A late filing penalty of €100 plus €3 per day for every day that the annual return is late
- A loss of audit exemption for two years for small and medium-sized companies
- A prosecution by the CRO or the ODCE for breaching the Companies Act 2014
- A strike off from the register or a dissolution of your company by the CRO
Therefore, it is important to file your annual return on time and avoid these consequences.
How can I change my ARD?
You can change your ARD by filing two consecutive annual returns within a shorter period than 12 months. For example, if your current ARD is 30 June 2023, you can file your next annual return by 31 December 2023, and then file another annual return by 30 June 2024. This will change your ARD to 30 June 2024. However, you cannot change your ARD to a later date than your current ARD.
How can I check if my annual return has been filed and received by the CRO?
You can check if your annual return has been filed and received by the CRO by using the following methods:
- You can log in to CORE and view the status of your annual return online. You can also download a copy of your annual return and your receipt from CORE.
- You can search for your company on the CRO website and view the details of your annual return, such as the date of filing, the date of receipt, and the financial year-end.
- You can contact the CRO by phone or email and ask for confirmation of your annual return filing.
How can I get a copy of my financial statements?
You can get a copy of your financial statements by using the following methods:
- You can log in to CORE and download a copy of your financial statements from there.
- You can request a copy of your financial statements from the CRO by paying a fee of €3.50 per document. You can do this online, by post, or in person at the CRO office.
- You can contact your accountant or company formation agent and ask them to provide you with a copy of your financial statements.
How can I get help with my annual return filing?
You can get help with your annual return filing by contacting Peak Accounting Solutions. We are a leading Irish company formation and accounting service provider that can help you with your annual return filing. We have a team of qualified and certified accountants who are well-versed in the Irish accounting standards, formats, and legislation. We will ensure that your financial statements are accurate, complete, and compliant with the relevant regulations. We will also file your annual return on time and avoid any late filing penalties or loss of audit exemption.
