Change your accounting period / ARD (UK): why, when, pros & cons, and worked examples
Yes, in many cases you can change your Companies House year end (ARD) — but it’s not always beneficial. This guide explains what changes, when it helps, the admin cost, and common constraints using simple examples.
In This Guide
1) What “changing ARD / accounting period” means
Your Accounting Reference Date (ARD) is your Companies House year end date — your accounts are “made up to” this date. Changing ARD changes your accounting period end date for statutory accounts.
Plain English
You’re choosing a different “cut-off date” for the set of accounts you’ll file. That can make the next set of accounts shorter or longer.
2) When it’s worth changing (and when it’s not)
| Situation | Why you might change | Watch-outs |
|---|---|---|
| Align with business cycle | Simpler reporting and planning (e.g. seasonality) | May create a long/short period once |
| Match a group year end | Cleaner consolidation and internal reporting | Rules/limits can apply; check official guidance |
| You need more prep time | In some cases an extension gives breathing room | Not a “penalty escape”; deadlines still apply |
| You’re unsure / no clear benefit | Often not worth the admin overhead | Can create confusion in bookkeeping |
3) Trade-offs: benefits vs hassle vs limits
Potential benefits
Hassle / limits
Limits & constraints (what to watch for)
- Not unlimited: Companies House has restrictions on how often / how far you can change your accounting reference date.
- Deadlines move: your accounts due date is tied to the period end. Changing ARD changes the clock.
- Long periods are heavier: a longer period can reduce “panic” but increases bookkeeping workload and error surface area.
- No penalty escape: penalties are automatic once deadlines are missed—changing dates is not a guarantee.
If you’re considering changing ARD purely to avoid a penalty, read late filing penalties and how to file accounts first.
Official references: GOV.UK annual accounts · File your annual accounts
4) Worked examples
Example A: shorten the period to “clean up” bookkeeping
You incorporated mid-month and ended up with a month-end ARD that doesn’t match how you operate. You want a cleaner year-end to simplify bookkeeping and comparisons.
- Concrete example: incorporate 10 June → default ARD often becomes 30 June.
- You might prefer a 31 March year end to match a tax year / planning cycle.
- Result: the next accounts might cover a shorter period once.
- Trade-off: you still need to file by the (new) deadline; not a free extension.
Example B: extend the period to align with a cycle
You want your year end to match a seasonal business cycle (e.g. project-based work) so reports make more sense.
- Concrete example: you want to shift from 31 March to 30 September to match contract cycles.
- Result: you may have a longer accounting period (more transactions to reconcile).
- Trade-off: admin load increases; confirm you’re within Companies House limits.
Example C: “more time” is not always a win
Some founders consider changing ARD because they’re behind on bookkeeping. This can be helpful in specific cases, but it can also backfire.
- Longer period = more bank transactions to reconcile, more adjustments, more places to make mistakes.
- If you extend the period, you still need a plan for filing (and penalties apply if you miss the deadline).
- Practical rule: only change ARD if you can explain the benefit in one sentence (alignment, group reporting, clearer cycle).