What is a year end?
Year end is the last day of a business's financial year, the date its annual accounts are drawn up to and from which its filing deadlines are counted.
What year end means
For a company, the year end is its accounting reference date. The annual accounts show the profit and loss for the year up to that date and a balance sheet showing the position on that day. For a sole trader, it is the date the accounts are made up to, which is often 31 March or 5 April.
Example
A private limited company has a year end of 31 March 2026.
| Deadline | Date |
|---|---|
| Accounts filed at Companies House | 31 December 2026 |
| Corporation Tax paid | 1 January 2027 |
| Company Tax Return (CT600) filed | 31 March 2027 |
The confirmation statement is separate and follows the anniversary of incorporation, not the year end.
Year end for sole traders
Sole traders do not file accounts at Companies House, but they still choose a year end for their bookkeeping. Since basis period reform, profits are taxed on a tax-year basis, so a year end of 31 March or 5 April avoids splitting profits between two tax years and makes the Self Assessment return simpler. Anyone using a different date can change it, and HMRC treats 31 March as equivalent to 5 April.
Why it matters for your business
Several decisions only count if made before the year end, and the accounts need accurate figures at that date. A useful checklist:
- Reconcile every bank, card and loan account to the year-end statements.
- Count stock and work in progress.
- Chase overdue customers and decide whether any debts are bad.
- Record accruals for costs incurred but not yet invoiced, and prepayments for costs paid in advance.
- Review the director's loan account and clear any overdrawn balance if possible.
- Make employer pension contributions before the year end if you want relief this year.
- Time equipment purchases to use the Annual Investment Allowance in the year you need it.
Missing the Companies House deadline brings automatic penalties for private companies: £150 if up to one month late, £375 up to three months, £750 up to six months and £1,500 after that, doubled if accounts were also late the previous year. Cloudkeepers works through this list with clients before each year end.
Common questions
Companies House charges an automatic late filing penalty, starting at £150 and rising to £1,500 for accounts more than six months late, and doubling if the previous year's accounts were also late. Persistent failure can lead to the company being struck off and directors being prosecuted.
Yes. A new company's year end is set automatically at the end of the month of incorporation, but you can change it with Companies House. Many owners choose a date after their busiest period, or 31 March to line up with the tax calendar.