Accounting Reference Date (ARD) (FYE)

What is an Accounting Reference Date? What service do we offer to change this date? What is the procedure? Important Take-Aways on Rules and Restrictions How will the filing deadline be affected when the ARD is changed?   What is an Accounting Reference Date? A company's accounting reference date (ARD) is the term used to refer to the end of a company’s accounting period, which is typically 12 months long. A company's first accounting period starts on the day it is incorporated and ends on the final day of its anniversary month. For example, if a company is formed on 5th March, its first ARD will be 31st March of the following year, making the initial period slightly longer than 12 months. The ARD then recurs annually, with the next accounting period beginning the day after the ARD. Companies can also change their ARD by shortening or lengthening the period subject to certain conditions. A company may wish to change this date to align with group accounts or to occur simultaneously with their tax obligations.   What service do we offer to change this date? Changing the Accounting Reference Date is available as part of the Full Company Secretarial Service (FCSS). This change is one of the 15 free transactions included in the service. If the customer has FCSS, please submit an FCSS Request so the account manager can begin processing it. If the customer does not have FCSS, we can provide this as an ad hoc service for £19.99 + VAT. It is not listed in the shop section, so a manual invoice must be raised. Additionally, an email should be sent to CoSec-Orders@[Brand].co.uk to initiate the request, as the manual process does not automatically notify CoSec.   What is the procedure? Step 1: Confirm the New Accounting Reference Date Confirm the new date with the customer and determine whether they are extending or shortening the accounting period and for which period this change is to occur for. Ensure the change complies with regulations. The Accounting Reference Date (ARD) marks the end of the accounting period, typically 12 months long. The period can be extended up to 18 months but only once every five years, unless one of these exemptions applies: The company is in administration. The company has approval from the Secretary of State. The company is aligning accounts with its Group. The company is an overseas entity. The period can be shortened as often as required, to as little as one day, except for the first accounts, which must be at least six months long. Step 2: Draft and Sign the Board Resolution If the change is permitted, the account manager will draft a Board resolution. This will be sent via DocuSign for signature by the directors. ARD changes typically require board approval under model or standard articles. Step 3: Submit the AA01 Form to Companies House The final step is submitting the AA01 form to Companies House. Once accepted, the customer should be notified of the update.   Important Take-Aways on Rules and Restrictions You can change your accounting reference date (ARD) by shortening or lengthening your company’s financial year, provided your annual accounts are not overdue. Changes can only be made for the current or previous financial year and will impact your accounts filing deadline and Corporation Tax period. Shortening the Financial Year You can shorten your financial year by any length, even to a single day, with no limit on how often this can be done. However, the first set of accounts must be at least six months long. Example: Shortening the ARD A company incorporated on 13 March 2025 has an ARD of 31 March 2026. It wishes to shorten its ARD to 31 December 2025. The new accounting period (13 March 2025 – 31 December 2025) is 9 months and 19 days, meeting the six-month minimum requirement. Lengthening the Financial Year You can extend your financial year up to 18 months, but only once every five years unless: The company is in administration. Approval is granted by the Secretary of State. The company is aligning with a parent or subsidiary. The company is an overseas entity. Example: Lengthening the ARD A company incorporated on 2 January 2025 has an ARD of 31 January 2026. It wishes to extend its ARD to 30 April 2026. The new period (2 January 2025 – 30 April 2026) is 15 months and 29 days, within the 18-month limit. This change is acceptable if no extensions have been made in the last five years or an exemption applies.   How will the filing deadline be affected when the ARD is changed? When the ARD is changed, the new filing deadline will be the later of: 9 months from the new ARD (for private companies), or 3 months from the date Companies House receives Form AA01. This does not apply to a company’s first accounting period, where the deadline remains 21 months after incorporation. In some cases, a company with more than one year of operation may have multiple accounting periods eligible for change. This occurs when a new accounting period has begun, but accounts for the previous period have not yet been filed. If both the current and previous accounting periods can be amended, always verify which ARD is being changed to ensure accuracy.   Helpful blog on the topic  https://www.1stformations.co.uk/blog/accounting-reference-date/ Training Videos  https://intranet.bsqgroup.co.uk/page/2735?SearchId=0