Change Accounts Year End

Ltd Companies are allowed to change their accounting year end. The proposed change date must be communicated to Companies House.

Most companies apply to shorten or extend their financial year end period for the following reasons:

1. To have the company accounting year end coincide with the holding company accounts period to make the consolidation of accounts of all companies within the group simple.
2. To have the accounting period in line with the government tax year. Many companies prefer to have their accounting period end on 31 March for the reason of to make the administration of accounts and PAYE records reconciliation straight forward.
3. To have the company accounts period end match with VAT returns quarter end.
   For administration convenience purposes.

Procedures For Changing Accounts Date

Generally companies are not allowed to change their accounting period if the accounts are already overdue.

The overdue accounts attract late filing penalty. The penalty start from £150 to £1500 for private limited companies and more expensive penalty for public companies.

Extension of accounts year end must not be more than 18 months unless the company is in administration.

Feel free to contact our accountants to discuss your company accounts year end, they will be more than happy to assist you.