Periods

The period covered by a set of accounts is known as the period of account.

Typically, for an ongoing company, the period of account will be 12 months long and the accounting period will be the same as the period of account, but this isn't always the case.

As certain events trigger when an accounting period begins or ends, there could be more than one accounting period in any period of account.

A period of account must be no longer than 18 months under the Companies Act 2006, s391(5) and s392(5). Long periods of account (those exceeding 12 months) are typically for the start or end of a company’s life, or where the company changes its accounting reference date or e.g. following a company buy out or reorganisation, so as to synchronise with the new group’s accounting reference date.

When you first create a company, you will be prompted to create a period of account.

Note:

The accounting period will automatically be created using the same dates as the period of account, but these can be edited. If the period of account is longer than 12 months, the accounting periods will automatically be created with the first accounting period covering the first 12 months of the period of account and the second accounting period covering the remainder of the period of account.

To review the periods of account created for a company, select Periods. This opens Select period of account, which lists all of the periods of account created for the client.

If Select period of account doesn't show any periods, then, to add the required period:

  1. Click Add. Enter a start and end date for the new period of account.

  2. Click Save. The list of periods of account appear, showing the one you have just added.

    The accounting period will automatically be created using the same dates as the period of account, but these can be edited. If the period of account is longer than 12 months, the accounting periods will automatically be created as noted above.

Note:

See the note under To add a company at View all companies about setting up a new company as a non-UK resident company landlord and/or a new or existing company with one or more very short (often one-day) period(s) of account / accounting period(s).

  1. Select Periods. The available periods of account for the company appear in a list.
  2. Highlight the relevant period and click Edit.
  3. Change the start and/or end date as required.
  4. Click Save.

You can only delete the most recent period of account.

  1. Select the period you want to delete and click Delete.
  2. A message appears informing you that you will lose all the data that you may have entered for this period of account and its accounting periods, and checks that you want to continue.
  3. If you are sure, click Yes. The period and all its accounting periods are deleted.

This is the period for which a Corporation Tax return is submitted, and for which a computation is produced. You may need to submit returns for more than one accounting period for each period of account.

Typically, for an ongoing business, the Period of Account and Accounting Period will be the same, but this isn't always the case.

An accounting period starts when: 

  • A period of account starts
  • The company commences trading
  • The company comes into the UK Corporation Tax net
  • The previous accounting period ends.

An accounting period ends when:

  • A period of account ends
  • The company ceases to trade
  • The company leaves the UK Corporation Tax net
  • Twelve months have elapsed.

Accounting periods are created within periods of account.

To review the periods of account created for a company, select Periods.This opens Select period of account, which lists all of the periods created for the client.

If Select period of account doesn't show any periods, then, to add the required period:

  1. Click Add. Enter a start and end date for the new period of account.
  2. Click Save. The list of periods of account appear, showing the one you have just added.

Accounting periods are edited within periods of account.

  1. Select Periods. The available periods of account for the company appear in a list, showing the accounting periods within it.
  2. Highlight the relevant period and click Edit.
  3. If there is only one accounting period within this period of account, the start and end dates much match. If you want to split the period of account into two accounting periods, you can change the end date, this will then automatically create a second accounting period to fill the remaining time within the period of account.
  4. Click Save.

Accounting periods are deleted as part of periods of account. You cannot delete an accounting period within a period of account, only edit the end dates. See To delete a period of account for details.