This is a commonly asked questions and the answer is yes, you can change your company’s year-end, however, you should be aware of the rules surrounding this topic before you make any decisions!
You can request to make your company’s financial year run for more or less than 12 months. This is known as your accounting reference date. Most companies tend to change their year-end to fall in line with a specific date, for example, 31st December (the end of the year) or 31st March (to coincide with the end of the tax year). You can only do this for your company’s current financial year or the one immediately before it.
You can shorten your company’s financial year as many times as you like but the minimum period you can shorten it by is 1 day. You are able to lengthen your company’s financial year to a maximum of 18 months, or longer if your company is in administration. You can only do this once every 5 years, unless your company is in administration, or you have special permission from Companies House.
There is no reason right or wrong date when it comes to changing your year end, but be mindful of when your business is at it’s busiest because end of year accounts can be time consuming.
If you choose to change your company’s year end date you must update your accounting period dates with HM Revenue and Customs (HMRC). This will affect your company’s accounting period for Corporation Tax and will also change your filing date! You can apply to Companies House online or via post.
It’s important to remember that you cannot change your year-end date if your accounts are overdue!
If would like more information or feel changing your company’s year end deadline would interest you, then please get in touch with us at info@future-cloud.co.uk! Alternatively, give us a ring on 01636 337069 to book an appointment.
