Do I need an accountant to submit tax returns?

Is it a legal requirement that all limited companies have an accountant in order to submit tax returns? More specifally Corporation Tax return form CT1 makes some reference to a company with a turnover less than €13,000,000 must compltete "extract from accounts". In other words can anyone do the accounts for me or even myself rather than employing an account

There is no statutory requirement to use an accountant to compile your accounts. Your accounts must be audited by a registered auditor if your turnover is above €317,434.52 for financial years commencing Feb 21 2000 and 30 June 2004. For financial years commencing July 1 or after, the audit-exempt turnover figure is €1.5m.

Don't do your books or tax returns yourself unless you know what you are doing.

extopia is correct .. except that you have to request formally not to have an Auditor, but filing the CT1 is sinch after you prepare the accounts.

You will also need to have your accounts audited by a registered auditor if you have missed the company's current year Companies Office return deadline or the company's prior year Companies Office return has been filed late (this may be relevant given your query re late filing on another thread). This applies regardless of the size or turnover of the company.

If the company is audit exempt, the directors still have a statutory duty to have accounts prepared to a standard that complies with accounting standards.

If the company is audit exempt, the directors still have a statutory duty to have accounts prepared to a standard that complies with accounting standards.

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Note that this does NOT mean that your accounts need be prepared by an accountant. There are plenty of people capable of doing this for you who are not "accountants" per se.

Note that this does NOT mean that your accounts need be prepared by an accountant.

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I never said that it did.

There are plenty of people capable of doing this for you who are not "accountants" per se.

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There is absolutely nothing to stop an audit-exempt company from using a non-professional to complete accounts and returns on their behalf. However unless the person concerned is sufficiently well-versed in company law and accounting standards (which are subject to regular and often subtle updates in practice) there is a risk of non-compliance with the directors' obligation under company law to ensure that "proper books of account" are maintained.

This obligation includes the necessity to ensure that accounts are comply with relevant accounting standards. Failure to do so is an indictable offence which could lead to prosecution or other criminal sanction for the directors. (See ODCE website for more on this). In the event of any unforeseen problems in this regard, the buck stops with the directors. In the event of problems, the authorities may not look kindly on a scenario where the directors had opted not to avail of professional assistance to ensure compliance with their legal obligations.

I never said that it did.

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I never said that you said it did.

Of couse, non-accountants who prepare tax returns and accounts are not necessarily non-professionals.

Whyamiselfemployed, I would suggest that if it makes financial sense to have your accounts prepared by an accountant, by all means do so. Be sure to evaluate carefully any individual (accountant or non-accountant) before you engage their services.

I am confused about all this. I am a director of a limited company. I have been told by a bookkeeping service that although they can prepare my accounts a chartered accountant must sign them for the approval of the Company Registration Office. This appears to be in direct contradiction to what you are saying. I would like to believe you of course but can you please back up your information a bit more?

Please excuse me if I am directing this message to the wrong person(s) but this is my first time doing this. I just registered today.

I would like to believe you of course but can you please back up your information a bit more?

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Do bear in mind that AAM should not be used as a substitute for professional advice.

Also bear in mind that that everyone who contributes here does so on a 100%voluntary basis. In this context, the above-quoted sentence might appear to some people as being a tad rude, especially on your very first post here.

Hi Bladerunner

There is no confusion at all. Your bookkeeping service is just wrong.
That is the way it used to be, but no more.

In summary:

For financial years commencing July 1,2004 or after, the audit-exempt turnover figure is €1.5m.

You will also need to have your accounts audited by a registered auditor if you have missed the company's current year Companies Office return deadline or the company's prior year Companies Office return has been filed late ...This applies regardless of the size or turnover of the company.

These conditions are well known to most qualified accountants and solicitors and company secretaries. There is no need to "back it up" as such.

By the way, I don't think your post was in slightest bit rude. Ubi seems to have misinterpreted "back it up a bit more please" as expressing some doubt.

Enjoy Askaboutmoney

Brendan
Administrator

Brendan said:

These conditions are well known to most qualified accountants and solicitors and company secretaries. There is no need to "back it up" as such.

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I agree but just in case the poster still has any doubt they can see the Companies Registration Office's view on the matter [broken link removed].

As an aside reading there I noticed that there are a few classes of companies specified in a schedule to the Act that are not able to avail of the exemption but they all appear to be in financial services so unless in the unlikely event that is the type of business the poster is in then the exemption should apply.

I've certainly got my money's worth out of AAM today!

Certainly food for thought.

I had posted a similar enquiry and am still unclear. I don't have a limited company (or any company) but am self employed (taxi). It appears that I don't need an accountant (according to the person who replied to my post) but I do need a set of accounts. Due to illness, my income was v.low for 2006 (non-taxable after expenses I would think). Bearing this in mind, and as I am a good book-keeper who could prepare a very basic set of accounts, should I go ahead and do my own return? I will use an accountant if it is strongly advisable, but don't want to waste money on one if it's really not necessary, and if preparing a basic set of accounts on my own would suffice.

If you feel confidant in preparing your own accounts, go ahead then get your paperwork checked over by a qualified accountant - shouldn't be that expensive and is tax deductable too! Hubby worked as a hackney for 5 years with me looking after the books, we paid €300 to have them looked over by a professional and he saved us loads!! Turned out to be the best €300 we ever spent!

Yes - I would strongly agree with the above post, although you might find it difficult to secure these services for €300.

If you keep good records and receipts, and have a good idea of your entitlements and obligations under tax and company law, there's no good reason not to do your own books and/or tax returns. Indeed, anyone in business of any kind should be doing at least rudimentary book-keeping in order to know whether they're making any money or not!

Doing your own tax returns is a different matter however if you're not reasonably confident that you can claim all legitimate business expenses and tax credits, in which case a good accountant will be well worth the fee (especially if you can find one for €300).