Changing your company’s year end

Source: HM Revenue & Customs | | 20/09/2017

There are special rules 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 historically set by reference to the date the company was incorporated. Under certain circumstances it is possible to make a change to the year end.

As a general rule, you can only change the year end for the current financial year or the one immediately before. Making a change to a year end date will also change the deadline for filing accounts (except 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 be extended more often under limited circumstances, for example, when the company has been placed in 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.

There is no overriding reason for using one date over another but there are a number of 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).

Planning note:

Changing an accounting date can be useful if your present year end date falls at a busy part of your trading year, or if you have a profitable period followed by an unexpected loss making period. In the later case, extending an accounting period can average down profits over the extended period and bring forward a reduction in tax payable.

We would be happy to review your year end date to see if a change would be of benefit.



Accounts

We specialise in preparing end of year statutory accounts for your business, in line with HM Revenue & Customs legislation:

Sole Traders & Partnerships
Limited Companies
Limited Liability Partnerships
Property Management Companies
Property rental income accounts

Read More

Bookkeeping

We can adivise on the best bookkeeping options for your needs and budget, if you would prefer to do the bookkeeping yourself.

There are a number of excellent options including Sage desktop software and market leading online solutions, such as Kashflow & Xero.

Read More

Payroll

ejbc payroll

We can set-up and run your payroll scheme or advise on:

Setting up a new payroll system
Day to day payroll processing
Dealing with PAYE and NI deductions
Completing your end of year returns
Holiday & Statutory pay
Stakeholder pensions

Read More

Start Ups

Starting a Business is an exciting opportunity but at the same time can be daunting.

Why not let us take some of the stress away. We are on hand from the outset to help you through many of the challenges of getting your business up and running successfully.

Read More

sage accountant partnerchartered institute of taxationicaew firm
sage onekashflowxero partner

Search

Contact Us

Office 1 Details

EJBC Chartered Accountants
The Rectory, 1 Toomers Wharf, Canal Walk
Newbury
Berkshire
RG14 1DY

Tel: 01635 46174

  • info@ejbc.co.uk

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

 

Twitter Feed