The UK year-end process for limited companies involves two overlapping but distinct timelines: your company’s financial year end and the tax year end on 5 April. Understanding how these fit together helps you plan your work, meet every deadline and avoid unnecessary penalties.
Financial year end vs tax year end
These are two different things, and mixing them up is a common source of confusion.
| Term | What it means | Who sets it |
|---|---|---|
| Financial year end (accounting reference date) | The date your company’s annual accounts run to | You choose when you incorporate, can be changed |
| Tax year end | Always 5 April | HMRC |
| Corporation Tax accounting period | Usually matches your financial year, max 12 months | Based on your accounting reference date |
Your accounting reference date is set when your company is incorporated at Companies House. The default is the last day of the month in which your company’s anniversary falls. You can change it, but there are restrictions (you can only extend once every five years, and you cannot extend beyond 18 months).
Common financial year end dates
| Date | Why companies choose it |
|---|---|
| 31 March | Close to the tax year end, simplifies PAYE and CT alignment |
| 31 December | Aligns with the calendar year, common for international groups |
| 30 September | Spreads workload for accountants (avoids the January rush) |
| 30 June | Six months offset from the calendar year end |
If you have no strong preference, 31 March is the most practical choice for UK companies. It almost aligns with the 5 April tax year end, which simplifies your payroll year-end and Corporation Tax calculations.
The year-end timeline
Here is what happens after your financial year end, and in what order.
Month 1-2: Close your books
The first step is to close your accounting records for the period. This means:
- Complete all bank reconciliations through the last day of the financial year
- Enter any outstanding purchase invoices for goods or services received before the year end
- Review and finalise accruals (expenses incurred but not yet invoiced)
- Review and finalise prepayments (expenses paid in advance that relate to the next period)
- Perform a stocktake if your business holds inventory
- Reconcile your VAT control account
- Reconcile your PAYE control account
- Review your director’s loan account balance
The goal is to have a complete and accurate trial balance that reflects the company’s financial position at the year-end date.
For a detailed breakdown, see our year-end accounting checklist.
Month 2-4: Prepare accounts
Once your books are closed, the next step is to prepare the statutory accounts. These are the formal accounts that comply with UK accounting standards and must be filed at Companies House.
Most small companies prepare their accounts under FRS 102 Section 1A (small entities) or FRS 105 (micro-entities). The choice affects how much detail you need to disclose.
| Standard | Who can use it | Key features |
|---|---|---|
| FRS 105 | Micro-entities (turnover under £1 million and balance sheet under £500,000) | Simplest format, very limited disclosures |
| FRS 102 Section 1A | Small companies | Reduced disclosures, abridged accounts option |
| Full FRS 102 | Medium and large companies | Full disclosures required |
Your accounts must include at minimum:
- Balance sheet signed by a director
- Profit and loss account (not required to be filed at Companies House for small companies, but must be prepared)
- Notes to the accounts
Month 4-6: Prepare the Corporation Tax return
With the accounts finalised, you can prepare your CT600 (Company Tax Return). This involves:
- Starting with the accounting profit from your statutory accounts
- Making tax adjustments (adding back disallowable expenses, deducting capital allowances)
- Applying any reliefs (R&D credits, losses, group relief)
- Calculating the Corporation Tax due at the appropriate rate
The current rates are:
| Profit level | Rate |
|---|---|
| Up to £50,000 | 19% |
| £50,001 to £250,000 | Marginal rate |
| Above £250,000 | 25% |
For a detailed walkthrough of the CT600, see our guide on how to file your Company Tax Return.
Month 9: File accounts and pay tax
Two critical deadlines fall at the 9-month mark after your financial year end:
- File annual accounts at Companies House (9 months for private companies)
- Pay Corporation Tax to HMRC (9 months and 1 day)
These are hard deadlines with automatic penalties for late filing and interest on late payment.
Month 12: File the CT600
The CT600 must be filed with HMRC within 12 months of the end of your accounting period. You file it online through HMRC’s Corporation Tax service or through compatible accounting software.
You must attach your accounts in iXBRL format and your tax computation. Accounts production and tax software, or your accountant, handles the formatting and submission.
The 5 April tax year end
Running alongside your company’s financial year end is the PAYE tax year, which always runs from 6 April to 5 April.
What needs to happen at 5 April
| Task | Deadline | Filed with |
|---|---|---|
| Final Full Payment Submission (FPS) | On or before the last pay date in the tax year | HMRC |
| P60s to employees | By 31 May | Given to employees |
| P11D (benefits in kind) | By 6 July | HMRC |
| P11D(b) (Class 1A NIC) | By 6 July | HMRC |
| Pay Class 1A NIC | By 22 July (19 July if paying by post) | HMRC |
Payroll year-end checklist
- Run your final payroll for the tax year
- Submit the final FPS and mark it as the final submission of the year
- Check for any corrections needed to earlier FPS submissions
- Process any expenses and benefits for P11D reporting
- Issue P60s to all employees who were employed on 5 April
- Submit P11Ds if you provided any benefits in kind
If you use payroll software, most of this is handled automatically. The software will prompt you to mark the final submission and generate the required forms.
VAT year end
If your company is VAT-registered, your VAT periods may or may not align with your financial year. VAT returns are usually filed quarterly under Making Tax Digital.
At your financial year end, make sure:
- The VAT control account in your books matches what you owe or are owed by HMRC
- Any partial exemption annual adjustments are calculated correctly
- The capital goods scheme adjustments are made if applicable
- All VAT returns for periods within the financial year have been filed and reconciled
Confirmation statement
Separate from your accounts, every company must file a confirmation statement at Companies House at least once every 12 months. This confirms that the company’s registered information (directors, registered office, share structure) is up to date.
The filing fee is £13 for online filing. It is not directly part of the year-end accounts process, but it often falls due around the same time and is easy to overlook.
Common mistakes
Confusing payment and filing deadlines
The Corporation Tax payment deadline (9 months and 1 day) is three months earlier than the filing deadline (12 months). Many company directors assume they can file and pay at the same time, which results in late payment interest.
Not adjusting for short or long accounting periods
If your company’s first accounting period is longer than 12 months, you need to file two CT600s (one for the first 12 months and one for the remainder). The same applies if you change your accounting reference date and create a period longer than 12 months.
Forgetting the director’s loan account
If a director owes money to the company at the year end, the company may need to pay Section 455 tax. The rate equals the dividend upper rate in force when the loan was made. The charge can be reclaimed after the loan is repaid, but it creates an immediate cash outflow.
Ignoring the small companies threshold
If your company qualifies as small, you benefit from simplified filing requirements and may be able to file abridged accounts until that option is removed from April 2028. Check the criteria each year – if your company grows beyond the thresholds, you will need to prepare more detailed accounts.
Making it manageable
The year-end process involves many moving parts, but most of the work happens during the year, not after it. If your bank feeds are connected, your transactions are categorised correctly and your reconciliations are up to date, the year-end close becomes a review exercise rather than a data-entry marathon.
Investing in accounting software that handles MTD compliance, bank feeds and direct filing reduces the manual effort and helps you hit every deadline without scrambling.