Financial year
A company's financial year is determined by its accounting reference date in each calendar year.
First accounting reference date
A company's first accounting reference period is the period of more than six months, but not more than 18 months, beginning with the date of its incorporation and ending with its accounting reference date.
Alteration of accounting reference date
A company may give notice to the registrar to specify a new accounting reference date with regard to the company's current accounting reference period and subsequent periods, or the company's previous accounting reference period and subsequent periods. The notice must state whether the current or previous accounting reference period is to be shortened or extended. A notice extending a company's current or previous accounting reference period is not effective if given less than five years after the end of an earlier accounting reference period of the company that was extended. The accounting period cannot be extended to exceed 18 months.
The directors of a company must not approve accounts unless they are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit or loss. The auditor of a company in carrying out his functions in relation to the company's annual accounts must have regard to the directors' duty in this regard.
Resources
- Business
- Starting a business
- Limited companies
- The tax system for companies
- Forming a limited company
- Pros and cons of limited companies
- Buying a company 'off the shelf'
- Tax and the company car
- Company bonus or dividend?
- Tax saving strategies
- Interest and tax payments
- Companies Act 2006
- A company's members
- A more in depth look at the act
- Accounting records
- An auditor's rights to information
- An historical record of the key changes
- Appointment of auditors
- Appointment of directors
- Changing the company name
- Choosing a name for your company
- Directors transactions requiring members approval
- Directors' liabilities
- Directors' report
- Directors' service contracts
- Do you need an audit?
- Filing of accounts and late filing penalties
- Financial year
- General duties of directors
- Group accounts
- Loans to directors
- Records of directors meetings
- Registered office
- Related director agreements
- Shares and share capital
- Signing of accounts: directors and auditors
- Forming a limited company
- Companies House - forms you need to know about
- The law and directors' responsibilities
- Statutory records
- The company secretary
- Getting the company struck off
- Running your business
- Partnerships
- Your employees
- Selling your business
- Personal
- Tax
- Calculators