Why Does The Financial Year End On The 5 April?

It is strange that the financial year ends on such an odd date – why not on the last day of a month?

The reason why it is on this date in April goes back to the year 1751. Back then, the year itself ran from Lady Day, 25 March to the 24 March. In 1751 England had also become adrift with other countries in Europe with its calendar keeping. It was out of sync by eleven days, which made international trade difficult.

It was clear that England had to adopt a new system and it moved from the Julian calendar to the Gregorian calendar in 1751/2. The eleven days were taken out of September 1751 and the year ended on December 31st. 1752 began on January 1st.

Not everyone was happy with this decision and banks, one of the most traditional and conservative of all establishments, refused to fall in line. Not only did they not recognise that the year now began on January 1, they also refused to accept that the eleven days in September had been eliminated from their calendar. So, they regarded their year as starting on 25 March – which everyone else regarded as being 11 days further on – on the 5 April. And so it has been ever since.

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