Why is does the tax year end on 5 April ?

Its a really odd date to pick and the answer lies in the mists of time

In 1582 when Pope Gregory XIII ordered a change of calendar from the Julian (named after Julius Caesar), which had been in use since 42 BC, the  Julian calendar, which consisted of 11 months of 30 or 31 days and a 28-day February (extended to 29 days every fourth year), was  quite accurate. After centuries, though, even a small inaccuracy made a difference and by the 1500s it had put the Julian calendar behind the solar calendar by 10 days. Here in the UK we did not make the change in 1582 and by 1752 the difference had increased to 11 days and so we  changed to the Gregorian calendar in that year.

Our tax year started on 25th March, the old New Year’s Day. In order to ensure no loss of tax revenue, the Treasury decided that the taxation year which started on 25th March 1752 would be of the usual length (365 days) and therefore it would end on 4th April, the following tax year beginning on 5th April. The next difficulty was that 1800 was not a leap year in the new Gregorian calendar but would have been in the old Julian system. Therefore the Treasury moved the year start again from 5th to 6th of April, and this date has remained unchanged ever since.

HMRC, self employed, tax for self employed, tax return, therapists

Share This Post

Disclaimer

All content and information on this website is for information purposes only, and it does not constitute accounting advice and does not establish any kind of accounting-client relationship by your use of this website. An accounting-client relationship with you is only formed after we have expressly entered into a written agreement with you that you have signed including our fee structure and other terms to represent you in a specific matter. Although we strive to provide accurate general information, the information presented here is not a substitute for any kind of professional advice, and you should not rely solely on this information. Always consult a professional in the area for your particular needs and circumstances prior to making any professional, legal, accounting and financial or tax related decisions.

Red Tulips Chartered Accountants do not take any responsibility for links used within this website for external internet sites. We will not accept any responsibility for any information contained on those external sites or viruses arising from any link to a third party website. 

Related Posts

Why choose a Chartered Accountant ?

5 Reasons to use a Chartered Accountant Before choosing your accountant Unless a member of the ICAEW ( Institute of Chartered Accountants) or qualified with another professional body, anyone can call themselves an accountant, even if they have no professional…
READ MORE
keyboard_arrow_up