Understanding the UK Financial Year: Why April to April?

Explore the historical reasons behind the UK's financial year running from April to April.

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The UK financial year runs from April to April due to historical reasons dating back to the change from the Julian to the Gregorian calendar in 1752, which resulted in an 11-day calendar shift. The fiscal year was originally aligned with the spring deadline for tax payments, which was then set on April 5th, and later adjusted to April 6th to simplify administration. This period ensures smoother tax collection and budgeting processes.

FAQs & Answers

  1. Why did the UK switch from Julian to Gregorian calendar? The UK switched to the Gregorian calendar in 1752 to realign the calendar year with the solar year, correcting discrepancies.
  2. What is the significance of April 6th in the UK financial year? April 6th was chosen as the start of the fiscal year to simplify tax collection processes after the calendar shift.
  3. How does the UK financial year differ from other countries? The UK financial year running from April to April contrasts with many other countries that follow a calendar year or different fiscal periods.

Watch More

For more insights into financial processes and historical contexts, check out our other videos on UK taxation and budgeting practices.

  1. Why Does the UK Tax Year Start in April? Historical Insights Discover why the UK tax year starts in April, stemming from historical calendar changes and fiscal continuity.