Changing Your Company Year End
There are several reasons why a company might consider changing its financial year-end, which will either shorten or lengthen the accounting period. While a company can shorten its accounting period as frequently as needed, it can only extend it once every five years. More precisely, notice to extend an accounting period cannot be given if the company has already extended an accounting period within the last five years. Therefore, if you intend to lengthen your accounting period, ensure there is a valid strategic or financial reason for doing so.
Understanding the Normal Company Year-End
A company’s default financial year-end is typically set as the last day of the month that falls 12 months after its incorporation date. For example, if a company is incorporated at any point during March 2024, its first financial year-end would be 31st March 2025.
To gain a deeper understanding of what an incorporated entity is and how it functions, you may find our article, “What is a Limited Company?”, helpful.
Filing Deadlines for Company Accounts
The deadline for submitting a company’s first set of accounts to Companies House is 21 months from the incorporation date. Using the previous example, if a company is incorporated on 21st March 2024, its first accounts (up to 31st March 2025) must be filed by 21st December 2025.
Subsequent annual accounts are due for filing within nine months of the financial year-end. However, the specific due date depends on the month’s end. For instance:
- If the financial year-end is 28th February 2025, the filing deadline would be 30th November 2025.
- If the financial year-end is 26th February 2025, the filing deadline would be 26th November 2025.
Adjustments to Filing Dates
A company may choose to file its accounts up to a date within seven days before or after its registered accounting date. This option can be beneficial for businesses that operate on a weekly bookkeeping cycle, such as restaurants or bars. However, with the rise of modern accounting software like Xero and FreeAgent, businesses are now less likely to rely on weekly bookkeeping schedules.
If a company opts to file accounts within this seven-day window, there is no requirement to notify Companies House of this minor adjustment.
