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Trust me, you’re not alone. It’s one of those strange quirks of British life, like Marmite or queuing with remarkable patience. And, like many things in the financial world, the answer lies deep in history, a wonderful blend of tradition, practicality, and a dash of government self-interest.
Let me take you back a few centuries…
Before we had the luxury of electronic calendars and tax return reminders pinging on our phones, the year didn’t start on 1st January. In fact, England celebrated New Year’s Day on 25th March, known as Lady Day, a major religious festival marking the Annunciation (the angel Gabriel appearing to Mary).
Lady Day wasn’t just important religiously; it became a practical anchor point for everyday life.
It was one of the “quarter days” when rents were due, debts were settled, and crucially the government collected taxes.
In a time when farming dominated life and seasons mattered more than calendar pages, it made good sense: the end of winter, the start of new agricultural cycles, a natural moment to reset.
So, for centuries, 25th March was the financial New Year. Tax years, rental agreements, and legal contracts all lined up with it.
Fast forward to the 18th century, and England was in a bit of a pickle. Most of Europe had already adopted the Gregorian calendar, a more accurate system introduced by Pope Gregory XIII — but England was still stubbornly clinging to the older Julian calendar.
The problem? The Julian calendar had drifted badly over the centuries, putting England 11 days behind its European neighbours. If we wanted to trade effectively (and we did), something had to give.
So, in 1752, Parliament passed the Calendar (New Style) Act, jumping the calendar forward by 11 days. Imagine going to bed on 2nd September and waking up on 14th September — that’s exactly what happened! Those poor children who missed their birthdays!
But this caused a dilemma:
If the tax year had always started on 25th March, and you suddenly wiped 11 days off the calendar, the government would lose nearly two weeks’ worth of revenue. Unthinkable!
The simple solution? Move the start of the tax year forward by 11 days, from 25th March to 5th April.
Later, a small adjustment (to align leap years neatly) nudged it one more day to 6th April, where it has remained ever since.
You might ask and I would agree, wouldn’t it have been simpler to align everything to 1st January when we changed the calendar? Fresh start, clean bookkeeping, less confusion?
Yes, but remember: governments aren’t known for giving up tax receipts easily! Keeping the tax year tied to March/April protected that vital revenue stream and avoided disruption to existing contracts, rents, and loans, all tied to Lady Day traditions.
Today, the 6th April tax year start is just one of those charming oddities of British life that makes explaining the UK system to anyone overseas all the more entertaining.
At Lexington Wealth, we help our clients navigate these historical wrinkles with clarity and confidence. Whether it’s understanding tax year timings, optimising allowances, or building a financial plan that endures even through calendar quirks, we’re here to guide you.
