Limited company is allowed to change their account year end date. The proposed change account year end date must be formally communicated with Companies House by filing relevant Companies House form.
Limited company can apply to shorten or extend their financial year end date for easy management of your limited company’s filings.
- 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.
- 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.
- To have the company accounts period end match with VAT returns quarter end.
For administration convenience purposes.
Procedures For Changing account year end date
Limited company is not allowed to change their account period if their company accounts are already overdue. Extension of accounts year end must not be more than 18 months unless the company is in administration.
There are late filing penalty for filing accounts late. The penalty start from £150 to £1500 for private limited companies and more expensive penalty for public companies.