Newly formed limited liability partnerships (LLPs) are assigned an accounting reference date by Companies House. This date, which outlines their financial year, can be troublesome because it may not be the same as other annual reporting dates of an LLP, and many wish to change accounting reference date.
At Coddan, we can deal with Companies House to change the reference dates for clients who wish to have one that's more suitable to their operations and also the same as their annual reporting obligations to HM Revenue & Customs. The process is straightforward and low-cost; all that's required is filling out a form online.
However, it is not always possible to change limited liability partnership accounting reference date. One instance where it is not permitted by Companies House is where annual accounts for the current reference date have not been filed and are overdue, which in itself would place the LLP at risk of fines.
You can shorten the financial year as often as you wish but it is not possible to lengthen it beyond 18 months. In addition, you cannot lengthen the financial year more than once in five years, but there are exceptions: where the LLP is in administration of you wish to have the same dates as a parent company or subsidiary.
If you wish to change the accounting reference date for your partnership, or if you have any queries about whether you might not be able to, talk to Coddan's consultants today and we can help.