Guide To The Accounting Reference Date

The Accounting Reference Date (ARD) is the day that determines where a company's financial year begins and ends in the United Kingdom. On this day, companies must file their annual accounts with the UK's registrar of companies, Companies House.

Company directors are responsible for setting this date, which remains the same every other year unless they decide to change it. The ARD is the same as a company's end-year but can also be any day within the financial year.

For new businesses, the first accounting reference date is the last day of the month of their anniversary. Future accounting reference dates will automatically fall on this date every year. Your ARD is when your annual accounts must be submitted to Companies House.

For instance, if a company's ARD is December 31, the financial year runs from January 1 to December 31.

In this post, Incorpuk discussed where to find your ARD, how to calculate your company's financial year, when to file your accounts, and whether you can change it.

Where to Find Your Company's Accounting Reference Date

After the formation of a limited company, the accounting reference date is set to be on the anniversary of the last day of the month when the company was incorporated.

Your ARD remains the same yearly unless directors ask Companies House to shorten or lengthen your company's financial year. Your accounting reference date is the filing deadline for your company's accounts with Companies House. If you forget your Company's ARD, you can find it free from Companies House service or your formation company. To find your ARD, follow these steps:

1. Visit the Companies House website service
2. Type in your company name or registration number in the search bar
3. From the list on your screen, select your company
4. Under the 'Overview' tab, navigate to 'Accounts.'
5. Your ARD appears in bold after 'Next accounts made up to' or 'Next accounts made up to'

Look for the 'due by' date listed below the ARD. It's the deadline for filing your annual accounts at Companies House.

How to Work Out Your Company's Financial Year

Your company's financial year begins the day you incorporate your business at Companies House. When does it end? Your company's financial year ends the following year, on the last day of the month of incorporation or where its formation anniversary falls. For instance, a company incorporated on June 14 will have its first accounting reference date on June 30, 2025.

Unless the company's financial year is changed by shortening or extending, the ARD will be the same each year. Typically, a financial year is 12 months long, depending on the month the company was set up. If no changes are made to the financial year, your accounts must cover 12 months ending on the same ARD.

How long is a Financial Year?

The financial year of a company covers 12 months, but it can be longer or shorter. After incorporation, a company's financial year starts on the formation day and ends on the accounting reference date.

If your company is incorporated on the last day of the month, the financial month might be slightly longer than the typical 12 months. After the first financial year, the new financial year begins the day after your accounting reference date and ends on the accounting reference date of the following year.

What Will Happen at the End of My Company's Financial Year?

At the end of your company's financial year, all annual records must be in order and ready to be delivered to Companies House and HMRC before set deadlines.

You should prepare your Company accounts to the accounting reference date, meaning the information you report to the registrar bodies must cover the entire year up to the ARD. However, there's a seven-day allowance on either side of the accounting reference date before or after the ARD. The filing deadline for Companies House is:

• The first annual accounts will come 21 months after the date of company formation
• Filing yearly accounts comes after 9 months after ARD

HMRC accounts are sent as part of your Company Tax Return, and the filing deadline is 12 months after Corporation Tax. The 12 months might differ from the period your annual accounts cover.

How to Change Your Company's ARD

You can change your company's financial year to make it shorter or longer than 12 months. HOW? The question may linger. You must apply to Companies House by completing form AA01 to change your company's financial year.

Access the Webfiling service to complete the form or download a hard copy, fill it and send it via post. However, the online service is faster than most. Changing your company's financial year will affect your ARD, the deadline for filing annual accounts to Companies House, and the accounting period for Corporation Tax.

Rules for Changing Your ARD

There's no limit to how many times you can shorten your company's financial year. However, it's different when you want to lengthen your company's financial year, as it can only be pushed to a maximum period of 18 months once every five years. It can also be moved beyond 18 months if the company is in administration. Your company's financial year can only be lengthened once every five years if:

• The company is in administration
• The need to align dates with a subsidiary or mother company
• Companies House grants you special permission to do so

NOTE: Companies House only permits you to change your current financial year or the one before. But you can't make this adjustment if your company's annual accounts are overdue.

Reasons for Changing Your Financial Year

The most popular reason for changing your accounting reference date is to align your company's financial year with the tax year. It begins on April 6 in the current year to April 5 of the following year.

Another common reason for changing your financial year is to align it with your company's accounting period for Corporation Tax. These two periods will differ if a company begins to trade after incorporation. Here's how the difference happens:

1. Your company's financial year begins trading on the date of incorporation.
2. The accounting period for Corporation Tax starts trading, making it 'active' for Corporation Tax, which might differ from the incorporation date.

Aligning filing dates is important for companies since there are so many dates to remember and reports to submit to Companies House. Thus, it makes sense for a company to change its financial year to align important dates, but it's all optional.

Frequently Asked Questions

How does the company Act 2006 specify ARD?

The last day of the month the company was incorporated is Accounting. Reference Date ARD. It can also be the anniversary date of the company's incorporation. However, the date can be altered per the Companies Act 2006, sections 391 and 392. A company's financial year is determined by its ARD.

What form can I use to change the reference date?

To alter the accounting reference date, you complete the AA01 Form and then notify the Companies House of the changes. A director must sign the AA01 form, or a company secretary must submit it to Companies House with the appropriate fee.

How long can I extend the accounting period?

A company can extend the accounting period to 18 months if the accounts are on time. However, you can only shorten the accounting period by a day.

In Summary

A company's Accounting Reference Date (ARD) is the last day of its financial year. It's sometimes called a company's year-end and is when annual accounts must be made. Companies House will be the first accounting reference date, falling on the final day of the month the company was formed. After the first ARD, it will remain the same in the years to follow unless a company director or secretary alters it.

The Accounting Reference Date is crucial for all businesses as it helps them organize their accounts and submit them to the registrar, Companies House. The tax year begins from April 6 to April 5 of the following year.

When setting up a company, the ARD should be chosen meticulously, as it determines when a company's financial year begins and ends. The ARD should be chosen according to a company's needs, and it can also be altered when necessary. Do you have any questions about the accounting reference date? Kindly contact one of our experts here.