Other Important Issues - Accounting Reference Date

The accounting reference date is the date to which accounts will be drawn up each year – the company’s financial year end.

The ARD for a new company automatically becomes the end of the month in which the anniversary of the incorporation date of the company lies.

This date can be altered upon incorporation or at any time afterwards at the discretion of the directors, although there are once again strict rules governing such changes. It is possible in effect to set any date of the year as a company's ARD although it is usual practice for the date to be a month end. The rules governing how and when changes can be made become quite complicated, and it is advisable never to leave decisions until the last minute. One important note here is that unless under exceptional circumstances, the ARD can be extended only once in any 5 year period.

In general terms, accounts must be filed within 10 months of the ARD, but note that for new companies, the first accounts must be filed no later than 22 months from the date of incorporation. This rule applies from the exact date of incorporation – not the end of that month. The first accounting period cannot exceed eighteen months from the incorporation date.

There are automatic financial penalties imposed by Companies House for late filing of accounts, as well as the possibility of criminal action against the company’s directors. Company Registrations Online provide a comprehensive Annual Compliance Service that will assist in monitoring these dates and provide advice regarding how and when necessary changes can be made.

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