Happy New Tax Year!
As of today, the new UK tax year has officially started. It’s time to get your finances in order, review your tax code and start planning for the year ahead. Whether you’re self-employed, employed or a business owner, this is the perfect time to make a fresh start and get on top of your tax obligations.
However, we want to pose a question to you: Have you ever wondered why the UK tax year starts on the 6th of April every year?
The History
It turns out that the reason goes back several centuries to when Julius Caesar introduced the Julian calendar in 45 BCE. The Julian calendar was used in the UK until 1752 when they switched to the more accurate Gregorian calendar.
Under the Julian calendar, the New Year started on the 25th of March, which was also the day when people paid their rents and debts. But with the introduction of the Gregorian calendar, the UK changed the start of the year to the 1st of January — Which caused confusion as people lost 11 days of their lives. This led to the UK government deciding to change the tax year to start on a new date to avoid confusion in future years.
The Reasoning
So why did they choose the 6th of April?
In the 18th century, many people working in agriculture and the 6th of April was after the end of the busy spring planting season. This made it a convenient time for farmers to settle their debts and pay their taxes. The 6th of April was also close to the end of the financial year for many businesses, making it a natural point to reconcile accounts and prepare for the new year.
In summary, the UK tax year starts on the 6th of April every year because of a combination of historical and practical reasons. The switch to the Gregorian calendar caused confusion, leading to the government changing the tax year to avoid future issues. They chose the 6th of April because it was a convenient time (in the 18th century) for farmers and businesses to settle their debts and prepare for the new year.
Now you know the history of why the new UK tax year begins on the 6th of April. As we said at the beginning, this is the perfect time to make a fresh start and get on top of your tax obligations. So once again, Happy New Tax Year and good luck in the new (tax) year!
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