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Change of Tax Year End

The UK has the rather odd tax year end of the 5th April. The reason for this is principally due to the replacement of the Julian calendar by the Gregorian calendar in 1752. The change over would have meant that the UK treasury would have lost 11 days worth of tax in that tax year. In order to avoid this issue, the tax year was set as the 5 April.

It has taken around 250 year for the UK government to finally begin to think about taking measures to resolve this issue.

The government are consulting on changing the tax year end to 31 March and have not ruled out changing it to 31 December.

A 31 March year end would tie in with the year end used by the UK government for other matters, however a 31 December tax year end would tie in with the calendar year end and would also line up with the tax year end used by many western governments.

Interestingly, earlier this century, the Irish government changed their tax year end from 5 April to 31 December.

Hopefully it will not take another 250 years before a decision is finally made to address this oddity.

 

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