• Chapter 3 Chapter 3 A Company's Financial Year

    • 379. A Company’s Financial Year

      (1) The financial year of a company (including a restricted scope company to which the provisions of this Chapter 3 apply) is determined as follows.
      (2) Its first financial year–
      (a) begins with the first day of its first accounting reference period, and
      (b) ends with the last day of that period or such other date, not more than seven days before or after the end of that period, as the directors may determine.
      (3) Subsequent financial years–
      (a) begin with the day immediately following the end of the company’s previous financial year, and
      (b) end with the last day of its next accounting reference period or such other date, not more than seven days before or after the end of that period, as the directors may determine.
      (4) In relation to an undertaking that is not a company, references in these Regulations to its financial year are to any period in respect of which a profit and loss account of the undertaking is required to be made up (by its constitution or by the law under which it is established), whether that period is a year or not.
      (5) The directors of a parent company must secure that, except where in their opinion there are good reasons against it, the financial year of each of its subsidiary undertakings coincides with the company’s own financial year.

    • 380. Accounting Reference Periods And Accounting Reference Date

      (1) A company’s accounting reference periods are determined according to its accounting reference date in each calendar year.
      (2) 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.
      (3) Its subsequent accounting reference periods are successive periods of twelve months beginning immediately after the end of the previous accounting reference period and ending with its accounting reference date.
      (4) This section has effect subject to the provisions of section 381 (alteration of accounting reference date).

    • 381. Alteration Of Accounting Reference Date

      (1) A company may by notice given to the Registrar specify a new accounting reference date having effect in relation to–
      (a) the company’s current accounting reference period and subsequent periods, or
      (b) the company’s previous accounting reference period and subsequent periods. A company’s “previous accounting reference period” means the one immediately preceding its current accounting reference period.
      (2) The notice must state whether the current or previous accounting reference period–
      (a) is to be shortened, so as to come to an end on the first occasion on which the new accounting reference date falls or fell after the beginning of the period, or
      (b) is to be extended, so as to come to an end on the second occasion on which that date falls or fell after the beginning of the period.
      (3) 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 under this section.
      This does not apply–
      (a) where the company is in administration under Part 1 (administration) of the Insolvency Regulations 2015, or
      (b) where the Registrar directs that it should not apply, which he may do with respect to a notice that has been given or that may be given.
      (4) A notice under this section may not be given in respect of a previous accounting reference period if the period for filing accounts and reports for the financial year determined by reference to that accounting reference period has already expired.
      (5) An accounting reference period may not be extended so as to exceed 18 months and a notice under this section is ineffective if the current or previous accounting reference period as extended in accordance with the notice would exceed that limit.
      This does not apply where the company is in administration under Part 1 (administration) of the Insolvency Regulations 2015.