When you can or cannot change your company year-end

Source: HM Revenue & Customs | | 01/05/2018

There are special rules in place which limit the ability to change a company’s year end date. A company’s year end date is also known as its ‘accounting reference date’ and is usually set by reference to the date the company was incorporated.

Under certain limited circumstances it is possible to make a change to the year end. However, you can only change the date for the current or preceding financial year. Making a change to a year end date will also change the deadline for filing accounts (except for during a new company’s first financial year). For new companies, the first accounting reference date is fixed as the last day in the month in which its first anniversary falls.

There is no limit to the amount of times you can shorten a year end date but you can only extend the period to a maximum of 18 months once in every five years. The financial year can also be extended under limited circumstances such as when the company has been put into administration.

A request for a change to an accounting reference date can be made online using the Companies House online service or by using a postal version of the Change your company accounting reference date (AA01) form. No change can be made to a period for which accounts are overdue.

Planning note

There is no overriding reason for using one date over another but there are a number of important factors to take into account.

The most common year end dates are usually 31 December (the end of the year) or 31 March (to coincide with the end of the tax year). We would be happy to review your year end date to help ascertain if another date would be more beneficial.



Toggle

Latest News

Beware sting in VAT Annual Accounting Scheme
22/05/2018 - More...
The VAT annual accounting scheme is open to most businesses with a turnover of up to £1.35m per year. The main benefits

Give now pay later – what are the settlement rules?
22/05/2018 - More...
The settlement rules are intended to prevent an individual from gaining a tax advantage by making arrangements that

Company van use – the tax consequences
22/05/2018 - More...
There are a number of tax consequences to be aware when employees are provided with company vans and fuel. A company van

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

 

Search News


Our Address

Sterlings Ltd
Chartered Accountants
Lawford House,
Albert Place,
London N3 1QA

 

Company Registration No: 1357789
Registered in England and Wales
VAT No: 802 8138 49

Contact Us

tel: 020 8343 2255
e fax: 0871 474 2696
This email address is being protected from spambots. You need JavaScript enabled to view it.

Why Choose Us

Our Number

In the world of accountancy these are the only numbers you need -
020 8343 2255