ECL26100 - ECL example: an AP ending in the financial year
The typical situation will be a 12-month accounting period ending within the financial year and the person has been carrying on a regulated business for the whole of that financial year.
For example, Iota Limited prepares accounts for the 12-months ended 31 December 2026 showing UK revenue of £24 million. They were carrying on a regulated business for the entirety of the financial year from 1 April 2026 to 31 March 2027.
As only one accounting period ends within the financial year, it is the relevant accounting period.
Since the relevant accounting period is 12 months, there is no need to time apportion the band range. As £24 million is more than £10.2 million and less than or equal to £36 million, Iota Ltd falls in Band A.
Since the person was regulated for the full financial year, then apportionment of the levy is not required. Iota Ltd is due to pay the Band A levy of £10,200.