There are a number of important time periods and dates to consider following your company formation that will direct when statutory filings for your company need to be completed. There are a number of different submissions that need to be made to Companies House, namely the annual return and annual accounts. These must related to the company’s information and finances over a certain period of time, often the company’s financial year.
The “financial year” is the amount of time that a company’s annual accounts need to be prepared for, i.e. it is the length of the company’s accounting reference period. The accounts must illustrate the financial health and performance of the company in the previous year. The year begins on the date of company formation; recurring years will begin the day after the end of the previous financial year. For example, if your incorporate a company on 12th January 2012, the first financial year will run until 11th January 2013. The last date of the accounting reference period is known as the accounting reference date (ARD). Limited company directors may decide to make accounts up to a date that is 7 days before or after the ARD.
A company’s ARD is automatically set at the time of company formation. This becomes the last day of the month of incorporation. So, if setting up a company on 12th January 2012, the accounting reference date will be set as 31st January.
Is it possible to change my accounting reference date?
Some companies will look to change their ARD, and therefore accounting reference period, for a number of possible reasons. It is possible for a company to alter the period, though there are certain considerations. If looking to change the date, this request must be submitted to Companies House prior to the deadline for the accounts to be filed. The period can be shortened or extended, though not beyond 18 months. The only circumstance in which periods can be longer than this is if the company is in administration.
Additionally, there are restrictions on the frequency with which a company can change their accounting reference date and period. The financial year cannot be changed more than once in a five year period, with the exception that:
- The company is in administration.
- The company is either the parent or subsidiary of another entity within the European Economic Area, so that the dates of the two companies conincide.
- It is an overseas company, and the Secretary of State has approved the change.
Changing a company’s accounting reference date can be completed directly with Companies House, either through the paper or software filing of the correct form.
If you need any further assistance with determining your company’s financial year and the obligations attached to this, please contact us on 0844 893 0808 or at formations@wisteria.co.uk
