The accounting reference date: Everything you need to know
Your accounting reference date (ARD) marks the end of your company’s financial year. This is the deadline for completing your annual accounts. Companies House sets the ARD as the anniversary of the last day of your incorporation month.
In this article, we explain the importance of the accounting reference date and why it matters. We also cover how to find your company’s ARD and what steps to take if you want to shorten or extend your financial year.
What is an accounting reference date?
An accounting reference date (ARD) is the end of a limited company’s financial year, which normally spans a period of 12 months. It is sometimes referred to as a company’s ‘year end’ or ‘financial year end’.
The ARD is the date that a company’s annual accounts should be ‘made up to’. What this means is that the information contained within the accounts should cover the period up to and including the accounting reference date.
A company’s accounting reference date also determines the deadline for delivering annual accounts to Companies House. The filing deadline is 9 months after the company’s ARD.
Where do I find the accounting reference date for my company?
When you form a limited company, the accounting reference date (ARD) is set as the anniversary of the last day of the month in which your company was incorporated. This makes it relatively simple to calculate.
Example 1: If you incorporate a company on 6 October 2024, your accounting reference date will be 30 October 2025.
Example 2: If you incorporate a company on 30 October 2024, your accounting reference date will also be 30 October 2025.
Your ARD remains the same each year unless you request Companies House to either shorten or lengthen your company’s financial year. Any changes to the financial year will result in a new ARD and a corresponding change in the deadline for filing your accounts with Companies House.
If you’ve forgotten or don’t know your company’s ARD, you can find it in one of two ways – through Companies House service or Startxpress Online Company OS.
Companies House service
To find your accounting reference date using the Companies House service, follow these steps:
- Visit Companies House service
- Enter your company name or registration number in the search box
- Click on the correct company name from the list that appears on the screen
- In the ‘Overview’ tab, scroll down to the ‘Accounts’ section – your ARD will appear next to ‘First accounts made up to‘ or ‘Next accounts made up to’
How long is a company’s financial year?
A company’s financial year typically lasts 12 months, but it can be longer or shorter.
In the first year after incorporation, your company’s financial year will:
- Start on the day your company is formed.
- End on the accounting reference date (ARD).
Unless your company is incorporated on the last day of the month, your first financial year will be slightly longer than 12 months.
After the first year, your company’s financial year will:
- Start the day after your accounting reference date.
- End on the accounting reference date the following year.
Example: If you incorporate a company on 6 August 2024, your ARD will be 31 August 2025, making your first financial year longer than 12 months.
Your next financial year will run from 1 September 2025 (the day after the ARD) to 31 August 2026 (the ARD), exactly 12 months.
Going forward, your financial year and ARD will remain the same unless you choose to shorten or extend your financial year.
How to change your company’s ARD
If you want to change your company’s financial year to be shorter or longer than 12 months, you can apply to Companies House to change your accounting reference date (ARD).
To change your ARD, complete form AA01 and submit it to Companies House. The best way to do this is online via the WebFiling service, but you can also complete the form on paper and send it by post.
Adjusting your company’s financial year will affect your ARD and the deadline for filing annual accounts with Companies House. It may also impact your accounting period for Corporation Tax.
Rules on changing your ARD
You can shorten your company’s financial year as many times as you wish. However, you can only extend it to a maximum of 18 months (or longer if the company is in administration) once every five years.
You may lengthen your company’s financial year more than once every five years only if:
- The company is in administration.
- You want to align dates with a subsidiary or holding (parent) company.
- You receive special permission from Companies House.
You can only make changes to your current financial year or the one immediately before. Additionally, you cannot change your company’s financial year if your annual accounts are already overdue.
Why would I change my accounting reference date?
One reason for changing your accounting reference date would be to align your company’s financial year with the tax year, which runs from 6 April of one year to 5 April of the following year.
Another common reason is to align your financial year with your accounting period for Corporation Tax. These two periods may differ if you don’t start trading on the day your company is incorporated because:
- your company’s financial year begins on the date of incorporation, but
- your company accounting period for Corporation Tax begins on the date that your company starts trading and becomes ‘active’ for Corporation Tax, which may or may not be the date of incorporation
With numerous filing dates for limited companies to keep track of, some companies choose to align their financial year with other important dates. However, this is entirely optional, so do what works best for your company.
Do you have any other questions?
We hope this article has provided you with a clearer understanding of your limited company’s accounting reference date, including its definition and importance, how to locate your company’s ARD, and the steps to take if you wish to shorten or lengthen your company’s financial year.
If you’re seeking further information, explore the Startxpress Help Center and Blog for more in-depth resources.
For additional help or specific inquiries, feel free to contact us at support@startxpress.io. Our team is always ready to assist you!
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