Q: Do I need an audit?

A: Not always, but each case must be considered individually. Exemption from statutory audit may be available to certain companies that meet specific criteria. Some other types of company are required under company law to undergo an annual audit regardless. Even if a company could ordinarily avail of exemption, there may be other necessities for an audit, arising from bank financing requirements, shareholder agreements, etc

Q: Is it better to trade through a company or as an individual?

A: It always depends on the individual circumstances and needs of each client, and the variations are enormous. As can be expected, there are benefits and disadvantages to both. Specific advice should always be taken in this regard to ensure that the most suitable option is availed of

Q: When do I have to pay tax on my results?

A: Depending on whether or not you trade through a company the dates of tax payments vary, as do the amounts payable. Companies have to pay preliminary tax before the end of each accounting year (although in some cases the amount payable is nil), and any balance payable should be remitted to Revenue within nine months of the year-end. Self-employed traders have to pay tax by the end of October following the respective tax year, and will also have to pay preliminary tax for the following tax year at the same time. Consequently, disciplined cashflow management throughout the year is important in order to avoid problems when payments fall due

Q: What do I do with VAT?

A: Some businesses do not in fact have to register for VAT, either because they are exempt from doing so (for example, medical, educational, insurance, certain charities), or because their level of trade is below the registration threshold. If a business is registered (either voluntarily or otherwise), regular returns must be filed on time with Revenue, detailing the relevant amounts of VAT relating to the transactions in the period, and either payments made to Revenue, or refunds claimed. Always seek professional advice if there is any doubt as to whether you are properly accounting for VAT as it is an area where mistakes occur very frequently

Q: I have received a notice of strike-off, what does this mean?

A: Directors of all companies are required to file regular returns to the Companies Registration Office (CRO). Where this has consistently not been done the CRO will begin an Involuntary Strike-Off procedure which, if not checked, eventually results in the company no longer being in existence and all assets may transfer to the State. New companies with poor or no filing history are at greater risk than established ones which historically have a generally good filing record. If you receive a notice of strike-off contact a professional advisor immediately.

Q: My company is losing business and is struggling to pay its bills. I have limited liability because I only have minimal share capital invested in the company so can't I simply just close the doors and walk away?

A: No. By Law, directors of all companies are obliged to run the business in a responsible manner. They are exposed to various levels of penalty where this has been found not to be the case, and since the introduction of the 2001 Company Law Enforcement Act the policing of these obligations has increased dramatically. If you are experiencing problems with your company affairs, and think that the company may no longer be viable you should contact a professional advisor without delay with a view to discussing the options available and deciding on an appropriate course of action to either trade out of difficulty or close down the company within the Law.