The 6th of April is the beginning of the tax year in the UK. I’ve always wondered about the randomness of it but a bit of research showed that there is nothing random about it at all.
The tax year used to begin the 25th of March, a religious date called Lady Day (the day on when Angel Gabriel supposedly told Mary she would become pregnant). Back in the Medieval times, 25th of March was one of the four quarter days when all debts and rents had to be settled.
In 1582, Europe adopted the Gregorian calendar (which omitted 3 leap days every 400 years to correct the imbalance). Britain waited until 1752 to adopt this calendar; but by doing this, there would be an 11-day tax gap that the Treasury would lose! So they extended the tax year to April 5. A final one day was added in 1800 to compensate the Treasury for what would have been a leap year.
This ‘random’ 6th of April shows we, the British, never really want to what the rest of Europe does (Brexit anyone?) and that when it comes to collecting taxes, the Treasury always win.
Welcome to the new Tax Year.Niyi Adeoshun
Money Management Coach
Author of "The Price of Financial Freedom"
(3 Essential Steps for Breaking the Cycle of Debt)