Limited Company Accounts

Accounts and accounting periods for limited companies and limited liability partnerships

Every limited company or limited liability partnership (LLP) must prepare annual accounts that report on its performance and activities during the year. The accounts must include a balance sheet, a profit and loss account and certain other information.

The period reported on in the accounts is called the accounting period or financial year, and is used by HM Revenue & Customs to work out tax due or owed.

Accounting periods for existing businesses

The date on which the financial year ends, called the accounting date or accounting reference date, is normally 12 months after the previous accounting date. Your business can use a date seven days either side of this date if this is more convenient.

Accounting periods for new businesses

For new companies or LLPs the accounting period starts on the day of incorporation and ends 12 months later on the last day of the month in which the business was formed (or seven days either side of this if this is more convenient).

If a company was incorporated on 10 June 2008 its accounting date would be set at 30 June, and the first accounts would cover a period from 10 June 2008 to 30 June 2009 – or up to seven days either side of that date if this is more convenient.