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| *Ostroff, Fair and Company>>>United Kingdom Taxes |
Why is the UK tax year run from 6th April to 5th April and not from January to December like other countries? |
Why is the UK tax year run from 6th April to 5th April and not from January to December like other countries? Back in medieval times the king's income was collected by the Exchequer. It was their decision to divide the year into four parts so that sheriffs could travel to deliver the money without having to carry such large amounts. The dates were chosen as the main feasts closest to each of the quarter year days. The accounting periods then ended on Lady Day (March 25), on Midsummer's Day (June 24), on Michaelmas (Sept 29) and Christmas Day (Dec 25). It was tradition that the books would be balanced on 29 September. Most of Europe changed from the Julian to the new, more accurate, Gregorian calendar in 1582, but Great Britain continued with the old one system until September 1752. By this time the difference had increased to 11 days because the Romans had miscalculated the length of a year from the solar cycle. These 11 days were 'caught up' by being removed from the calendar altogether in 1752 when 2 September was followed directly by 14 September. In order not to lose 11 days' tax revenue in that tax year, the tax authorities then decided to tack them on at the end of the Christmas period, changing the collection date to 5 January. 80 years later, in 1842 the beginning of the tax year was moved to Lady Day, 6 April and has not changed since. Different countries runs different. different laws and regulations It is its own rules and preference. Apparently it's a historical thing since the tax system was set up this this country and nobody has decided to change the dates since It's because retailers are to busy during the festive period to worry about year end accounts. 'Old Style' and 'New Style' dates - see 1582 and 1751. By the time the Gregorian calendar was adopted in Britain, it was 11 days 'ahead' of the old Julian calendar it replaced. Julian dates are termed 'Old Style' and Gregorian dates 'New Style' March 25 (Old Style) 鈥?Lady Day; first day of New Year from c150AD until 1751 鈥?one of the Quarter Days in England when rents become due. Became April 6th (New Style), which is why our present Tax Year starts on this day! cos then it would notbe a tax year it would be 11 months |
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