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books of account

Posted in Category(ies): Latest News

 

All companies are required to keep adequate accounting records but, what precisely does “adequate accounting records” mean?

 

Adequate accounting records are records which:

  • correctly record and explain transactions of a company;
  • detail assets, liabilities, financial position, profit or loss of a company; and
  • enable directors to prepare annual financial statements.

 

The type of information which must be contained within the accounting records should cover information such as outlined below.

  • All monies received and spent
  • All assets and debts
  • All purchases and sales
  • Records of stock held
  • Records of services purchased or provided
  • Record of all goods bought and sold, including a record of itemised invoices

 

Time is money so, handling all of the above personally may not be the most cost effective option for a company. 

Consider:

–          having a qualified book-keeper (part-time or full-time)

–          retaining information in a simple format – does not have to be a costly bespoke piece of software.

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Posted on by | Kathryn-Maybury

New Customer Portal in the Registry of Friendly Societies

Posted in Category(ies): Latest News

New Customer Portal in the Registry of Friendly Societies

 

The Registry of Friendly Societies (RFS) is responsible for the efficient and effective registration and general regulation of over 1,000 Friendly Societies, Industrial and Provident Societies and Trade Unions in Ireland.

The RFS first foray into an online presence occurred in 2012 so, the launch this month of a new customer portal is a timely and welcome enhancement to all users.  The portal will enable a substantial level of business to be carried out online such as:

  • creating a new entity; and
  • filing Annual Return and amendments.

Apart from the ease of online filing, Users will be able to avail of reduced fees for online filings.  Quite how valuable the reduction of fees will be to Users is questionable given the total average annual filing fees paid to the RFS appears to hover around €46,000 to €50,000 per annum.  As my Grandmother always said “Every mickle makes a muckle” so, improving filing capabilities whilst also providing for some cost savings can only be a good thing.

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Posted on by | Kathryn-Maybury

Water and Banks

Posted in Category(ies): Directors

WATER and BANKS

 

Surely there are no two words more contentious in the Irish lexicon.

Irish Water is carrying out a review of over 500 water tariffs currently in place for business users.  Under Irish Water current proposals it is estimated that water bills will increase for 49% of business customers with decreases for the remaining 51%.  Changes to tariffs are likely to come into effect in Q4 2019. 

Businesses can use their latest water bill to fill out the Business Tariff Calculator at  https://www.water.ie/for-business/billing-explained/business-tariff-calculator.  This will indicate how your water bill will change under the new charges.

Now is the time to participate in the public consultation of these proposals with information available on https://www.cru.ie/document_group/establishing-irish-waters-non-domestic-tariff-framework

 

Banks

Companies seeking overdraft/loan facilities with banks have now become prey to a common practice amongst Banks which has come into being almost unnoticed.  It is now common for Banks to seek undated letters of resignations from Company Directors in order to take up the facility offer from the Bank.  Company shareholders/members appoint Directors to manage a company on their behalf.  It seems incredible that an outside institution can intrude into the management of a company by forcing companies to provide undated letters of resignation.  Is it any wonder so many companies are availing of the myriad of alternative funding solutions (crowd funding, venture capital, etc).  Anything but the banks!  How (or can) banks hope to re-engage with the business community whilst this sort of demand is deemed “standard practice”? 

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Posted on by | Kathryn-Maybury

New Anti-corruption legislation – potential impact on Irish companies

Posted in Category(ies): Anti-Corruption Legislation

 

30.07.2018 saw the introduction of the Criminal Justice (Corruption Offences) Act 2018.  At first glance it looks like a potentially terrifying piece of legislation, and frankly continues to do so even after second and third glances. 

 

The new Act has implemented six specific recommendations of the Mahon Tribunal.  Of particular interest is that the Act covers corporate bodies, and individuals but, also covers Irish Officials.

 

Key offences of the Act.

  • New offences of Active and Passive Trading
  • New offence of an Irish Official doing a Corrupt Act
  • New offence of giving a Gift or Advantage
  • New offence for Creating or Using False Documents
  • New offence of Intimidation

 

Presumptions of the Act.

  • Presumption of corrupt gifts extended to “connected persons”
  • Presumption of corrupt donation expanded

 

New provisions include:

  • Forfeiture of public office, and prohibition from seeking public office for Irish officials
  • New strict liability offence for bodies corporate
  • Provisions for seizure and forfeiture of bribes

 

This Act broadens definitions of corruption, covers a wider range of individuals, and includes Irish Officials.  It also provides for potential prison sentences up to 10 years, forfeiture of bribe, forfeiture of office (Public servants and elected Officials) up to 10 years and unlimited corporate fines. 

 

This is a radical overhaul of anti-corruption in Ireland which companies, at the very least, should take time out to consider if their policies are sufficiently robust.

 

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Posted on by | Kathryn-Maybury

Filing Annual Returns and Financial Statements – FAQ

Posted in Category(ies): Annual Returns

Filing Annual Returns and Financial Statements – FAQ

September is the month panic can set in as Companies suddenly focus on their filing deadlines for their Annual Return and Financial Statements. Confusion can surround terminology, deadlines, and signatures required. 

Below are answers to some of the most frequently asked questions (FAQs) KomSec Limited receives from our clients at this time of year.

 

*  Annual Return Date (ARD) date up to which information contained in the Annual Return is made, e.g. up to 30th September.

*  28 days after ARD the Annual Return must be filed electronically within 28 days from ARD.

*  28 days after electronic filing the original signed signature pages must be received by the Companies Registration Office (CRO) within 28 days from the 

    date on which the Annual Return was filed electronically.

*  First Annual Return does not have to file Financial Statements.

*  Financial Year – A company’s first financial years end can end no more that 18 months after its incorporation date. Subsequent financial years must start

    the day after the last financial year end and be for 12 months, + or – 7 days.

*  Nine month rule means that companies must file their FS within a maximum of 9 months and 28 days of the end of their financial year, known as the 9

    month rule.

*  Financial Statements must be filed electronically before or on day original signed signature pages are received by the CRO.

*  Financial Statements size is restricted by the CRO to a maximum of 5mbs.

*  Signatures for Annual Return are one Director and the Company Secretary.

*  Signatures for Financial Statements must be typed.

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Posted on by | Kathryn-Maybury

Thinking of becoming a Director? Think before you leap!

Posted in Category(ies): Directors

Thinking of becoming a Director?

Think before you leap!

 

Who thinks about becoming a Director

Running your own business may leave you without any choice but, to become a Director. For some it is perceived as a gentle wind-down towards retirement. For others it is a way of giving something back perhaps by becoming a Director of a State Board. Everyone has their own individual reasons on why they may wish to become a Director but, ensuring each person has the ability to integrate the additional time commitments into their existing business or personal lifestyle is an essential first step.

 

What do you hope to achieve by becoming a Director?

Becoming a Director is no longer the sinecure it once was as Legislators (in Ireland and EU) aim to increase the personal liability of individual Directors, and companies themselves recognise the value of a good Board, and achieving sound corporate governance. Wanting to become a Director in the expectation of a relatively benign wind-down at retirement is a non-starter.

A prospective Director should question their motives, and abilities before going further.

  • Are you willing to take on the onerous personal responsibilities, and obligations of a director?
  • Do you have the relevant skill set, and if not, are you willing to upskill or train as required?
  • Can you envisage yourself as an active member of a Board?
  • Do you know anyone currently acting as a Director who could give you a portrayal of how they find the role in real life?

 

Why bother?

Acting as a Director will invariably include moments of frustration and irritation but, so does anything in life, including life! Learning about a company from the inside out, making a positive impact on the dynamics of a company, interacting with your peers, the satisfaction of working with a well-balanced Board, and enthusiastic Management Team can make it all worthwhile.

Get it right and you will feel a million dollars knowing you are making a real and positive difference to a company, and its future. How many of us get such an opportunity to have such a tangible effect in the business world today?

Are you up to take such a leap?

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Posted on by | Kathryn-Maybury

Ireland, Right Place Right Time – Support from the IDA

Posted in Category(ies): Latest News

 

 

Ireland itself is seen to be in the top ten countries in the world for innovation with the highest population of Science and Engineering Graduates in the OECD. 

Companies considering Ireland as a potential location will have no difficulty amassing substantial information on the benefits of locating and working in Ireland.  The challenge is to find an efficient way through that labyrinth of seemingly contradictory material.

One of the first ports of call should be the IDA – Ireland’s inward investment promotion agency – which actively promotes and support Foreign Direct Investment into Ireland. The IDA will help companies considering setting up or investing in Ireland by facilitating Site visits, access to Universities, provide Advice, etc.

Apart from having IDA contacts in Ireland itself, the IDA has representatives around the world ensuring decision makers in Global Head Offices can access onsite visits and clear data on the benefits of locating in Ireland.

 The IDA highlights some interesting facts on businesses located in Ireland, and reasons why.

  • 17 of the top 20 global software companies
  • 14 out of 15 top medical tech companies
  • 20 out of 25 top financial services companies
  • 10 out of 10 top pharma companies
  • 8 out of 10 top industrial automation companies
  • 9 out of 10 top global software companies operate in Ireland
  • 3 of 5 top games publishers based in Ireland
  • 25% tax credits for Research & Development

Do not take our word for it, visit the IDA website https://www.idaireland.com/ and see for yourself.

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Posted on by | Kathryn-Maybury

Guidance for Charities on the promotion of Political Causes

Posted in Category(ies): Charities

  The Charities Regulatory Authority recently published a guide for Charities which describes the limitations of a charity’s promotion of political causes.

The guide states that the promotion of a political cause is acceptable on condition that the promotion directly relates to the advancement of the charitable purpose of the Charity.

It is recognised that on occasion, Charities need to engage in activities such as influencing policy or advocating change to legislation to support their charitable purpose. However, the promotion cannot be contrary to the charity’s constitution nor can the charity support a political candidate or a political party.

Permitted Activities

The guide provides clear examples to help Charity Trustees understand the kinds of actions that may or may not be permitted.

A political speaker at a charitable event is permitted on condition that it is the event and not the politician is being promoted.

Another example of a permitted activity is where a charity organises a march to Leinster House to encourage additional funding for integrated projects which advances the charity’s charitable funding.   This is permitted because the purpose of the march is to get more funding to promote good community relations, which in turn advances the charity’s charitable purpose.

Prohibited Activities

The guide refers to a fictional charity which provides its resources (a hall)  free-of-charge for use by a  political candidate for a fundraising event. This is not permitted because allowing a political candidate free use of the hall is not promoting the charity’s objects; and, secondly, it is conferring a private benefit to the political candidate. However, there would be no issue if the charity charged the political candidate its standard rate for hall hire, thereby raising funds for the charity.

The second example provided describes a charity which was set up for the purpose of advancing sustainability. This charity could not have campaigned for a ‘yes’ vote in respect of the 34th amendment of the Constitution, (same-sex marriage). The reason this would not have been permitted is that this activity is not directly related to the charitable purpose of the charity.

Lobbying

The guide also refers to the lobbying activities and highlights that charities need to ensure that if lobbying they need to comply with the Regulation of Lobbying Act 2015.

The Register of Lobbying is web-based and is maintained by the Standards Commission. Further information on the Regulation of Lobbying Act 2015 and the role of the Standards Commission can be found at www.lobbying.ie

 

 

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Posted on by | Van-Geraghty

Key dates during 2018

Posted in Category(ies): Latest News

 

Key dates during 2018

 

Month                        To Do

January                      02.01.2018 – drink coffee, organise desk 

                                    19.01.2018 – file Annual VAT 3 Return and Return of Trading details

                                    28.01.2018 – Global International Data Protection Day

 February                    01.02.2018 – CAO applications deadline

                                     08.02.2018 – Commencment of Companies (Accounting) Act 2017

 March                        17.03.2018 – St. Patrick’s Day wear Shamrock & large green hat

                                     21.03.2018 – Local Property Tax deadline (if paying full amount in one go)

                                     Quarterly Board Meeting – issue Agenda and Board Pack 

 April                            01.04.2018 – Easter Day

                                      02.04.2018 – Easter Monday recover from too much chocolate

                                      April – introduction of sugar tax, such timing!

                                      Audit – do not forget to ensure someone has engaged Auditors  

 May                             07.05.2018 – May Day

                                      25.05.2018 – General Data Protection Regulations goes live

 June                             04.06.2018 – Bank Holiday

                                       Quarterly Board Meeting – issue Agenda and Board Pack

 July                               July – Possible publication of Five Year Pension Reform Plan

 August                         06.08.2018 – Bank Holiday

                                       Last chance – go on holidays!

September                   23.09.2018 – Corporation Tax Return deadline for filing CT Return

                                       30.09.2018 – Annual Return Date for bulk of companies

                                       Quarterly Board Meeting – issue Agenda and Board Pack

October                        28.10.2018 – Annual Return deadline for electronic filing

                                       29.10.2018 – Bank Holiday

                                       October 2018 – Budget Announced

November                   Pension – consider topping up personal pension

December                    Quarterly Board Meeting – issue Agenda and Board Pack

                                       25th December 2018 – do not forget to put Turkey in the oven

 

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Posted on by | Kathryn-Maybury

Commencement of Companies (Accounting) Act 2017

Posted in Category(ies): Latest News

Do not be fooled by the title, this Act is not just for Accountants.  

The Companies (Accounting) Act 2017 was commenced on 08.02.2018 by means of S.I. 34/2018.   At first glance, with around 80 amendments to the Companies Act 2014 it looks more like an Act intended to clarify and qualify misconceptions or unintended errors arising since publication of the Companies Act 2014.

However, there are some excellent nuggets hidden in the Act not least of which is:

  1. expansion of qualifying conditions to qualify as a Small Company; and
  2. introduction of the concept of a Micro Company.

 

Small Company

S.280(a) now classifies a Small Company as one fulfilling two of the three following requirements.

o   Turnover                                                               – does not exceed €12m [up from €8.8m]

o   Balance Sheet total                                           – does not exceed €6m [up from €4.4m]

o   Average number of employees                    – does not exceed 50 [no change]

 

Micro Company

S.280(d) introduces the concept of a Micro Company where it fulfils the following.

o   Qualifies for Small Companies regime

o   Fulfils two or more of the following
(a)       Turnover                                                   – does not exceed €700,000

(b)      Balance Sheet Total                              – does not exceed €350,000

(c)       Average number of employees       – does not exceed 10

  

The change in Small Company and introduction of Micro Company have knock-on effects to the Companies Act 2014.  For example, substitution of S.352(1) dealing with exemption from filing certain information, and introduction of a new S.305A dealing with payments to third parties for services of directors.

 

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Posted on by | Kathryn-Maybury