Before the commencement of this legislation, companies automatically lost their audit exemption if they filed their annual return late. This Act replaces this with a graduated regime, meaning that the audit exemption will only be lost if a company files late more than once within a five-year period.
This change aims to reduce the administrative and financial burden on small businesses, many of which faced disproportionate consequences for a single late filing. By introducing a more lenient and practical approach, the Act supports better compliance without penalising companies.
The commencement of the changes to audit exemption under the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 is anticipated by the end of Q2 2025, but has been deferred with no current agreed date stipulated. |
As these changes take effect, we at BDO will continue to keep you appraised. We are here to support your business in staying compliant with such legislation through the provision of annual compliance support services. We can assist you with: