What is a year end for a company?
Answered 17 March 2026
The term "year end" for a company refers to the end of its financial year, which is defined in statute under the Companies Act 2006. Here is a precise explanation:
What the law says
A company's financial year is determined as follows under Companies Act 2006, section 390:
- First financial year: begins with the first day of its first accounting reference period and 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.
- Subsequent financial years: begin the day immediately following the end of the previous financial year, and end with the last day of the next accounting reference period (again, with the same seven-day flexibility for the directors).
The accounting reference date — which determines when each financial year ends — is set under section 391:
- For companies incorporated after the commencement of the Companies Act 2006, the accounting reference date is the last day of the month in which the anniversary of incorporation falls.
- Companies can change their accounting reference date by giving notice to the registrar under section 392, subject to restrictions (e.g. a period cannot generally be extended more than once in five years).
Additionally, the directors of a parent company must ensure (except where there are good reasons against it) that the financial year of each subsidiary undertaking coincides with the company's own financial year.
HMRC guidance / practice
HMRC guidance illustrates the practical application of year ends in various contexts. For example, in the context of the Senior Accounting Officer (SAO) regime and Uncertain Tax Treatment (UTT), a company's financial year end is the date by which qualifying thresholds (e.g. turnover >£200m or balance sheet >£2bn) are assessed for the preceding financial year.
Where companies in a group have different year end dates, HMRC guidance confirms that figures must be drawn from the last financial year of the other group company that ended before the end of the qualifying company's financial year.
In summary: A company's "year end" is the last day of its financial year, determined by its accounting reference date as set under the Companies Act 2006. For most companies incorporated after the Act's commencement, this defaults to the last day of the month of their incorporation anniversary, though directors have a seven-day window of flexibility and can formally change the date by notifying Companies House.
Citation sources
Company A’s financial year end is 31 December. Company B’s financial year end is 31 January. It is now February 2016. Company A A responsible officer of company A is considering whether it is a qualifying company for the year ended 31 December 2016. The company is incorporated in the UK in accordance with Companies Act 2006 in the year. The officer looks at whether company A meets the turnover and/or balance sheet condition for the preceding year. Company A’s preceding financial year ended on 31
The legislation sets out the criteria that must be met for Uncertain Tax Treatment (UTT) to apply. This is as follows (paragraph 2): (2) A company is a “qualifying company” in any financial year if, in the previous financial year, the company had either or both of the following - (a) relevant UK turnover of more than £200 million. (b) a relevant UK balance sheet total of more than £2 billion. There are specific rules defining the relevant UK turnover and UK balance sheet amount when the company
Part 15 Accounts and reports Chapter 3 A company's financial year A company's financial year 390 1 A company's financial year 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 c
Part 15 Accounts and reports Chapter 3 A company's financial year Alteration of accounting reference date 392 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 ref