The Department of Enterprise, Trade and Employment have announced some fantastic news for small and micro businesses in Ireland! They've introduced new regulations that significantly increase the size thresholds for these company categories. This means more companies will benefit from reduced administrative burdens and reporting requirements.
Here's a quick rundown of the key changes:
- Increased Turnover and Balance Sheet Thresholds:
- Small companies: Turnover limit goes up to €15 million (from €12 million) and balance sheet total to €7.5 million (from €6 million).
- Micro companies: Turnover limit increases to €900,000 (from €700,000) and balance sheet total to €450,000 (from €350,000). - Effective Date and Optionality:
- These changes come into effect on July 1, 2024, and apply to financial years starting January 1, 2024. Additionally, companies can choose to apply them retroactively to January 1, 2023.
What this means for you:
These changes will allow more businesses to qualify as micro or small companies, which unlocks several benefits, including:
- Audit Exemption: If your company falls under the micro category, you'll be exempt from the requirement for an audit.
- Simplified Reporting: You'll be able to file abridged financial statements, reducing the amount of information required.
- Enhanced Privacy for Micro Businesses: Directors' remuneration won't be publicly disclosed in accounts, protecting your privacy.
Overall, these changes are a positive step towards supporting Irish businesses, particularly small and micro companies that are the backbone of our local economies.
For more details, you can refer to the official announcement from the Department of Enterprise, Trade and Employment or download the Statutory Instrument No. 301 of 2024 here.
Do you have any questions? Please don't hesitate to reach out if you'd like to discuss how these changes might impact on both yours and your clients' businesses.
The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article.
