Monday, 22 April 2019

Ever wondered why the HMRC Tax Year finishes on the 5th April each year? Wonder no more, please read on.


Julius Caesar:
It all starts with Julius Caesar.  No, it starts a long time before him, but he is far enough back for our purposes.  The calendar in ancient Roman times was in a complete mess.  We tend to take the calendar for granted, but it is very important to keep an accurate calendar in place for a number of reasons.  Farming, in particular is one: farmers need to know the dates so that they can prepare to carry out all their essential operations at the right times in the year.  Four important, fixed events occur during the year: the two Solstices and the two Equinoxes, these “anchor” the calendar and the seasons fit around these dates.

The winter solstice on 22nd December is when the day is the shortest and the night is the longest;
the summer solstice on 21st June is the longest day of the year and when the night is the shortest;
the spring (Vernal) and autumn (Autumnal) equinoxes on 20th March and 23rd September are when the day and the night are of equal length.
Over time, the ancient Roman calendar which had started in synchronisation with the solar (or tropical) year, being the time it takes the Earth to orbit the Sun from one Vernal Equinox to the next, had gone completely adrift and confusion reigned.

To correct this, and get the calendar back on track, Caesar commissioned philosophers, mathematicians and astronomers to measure the year length accurately.  They worked out that the year was 365 and a quarter days long which, with the mathematics of the time, was pretty close.  To correct this, they devised a system with three years of 365 days followed by one of 366 and that was imposed in 45 BC (our time) - known as the year of confusion because it was made up to 445 days long - to correct previous errors.

However, the solar year is currently 365 days, 5 hours, 48 minutes and 46 seconds (*).  But even this figure fluctuates all the time as the Earth wobbles in its orbit around the Sun and is tilted on its axis: which causes the seasons to follow each other over the year.  This meant that, over the years and the centuries, the calendar started to drift again.

Gradually a clamour rose to get the calendar corrected.  Mainly this was from monks and priests because they were greatly concerned that prayers were not being made on the correct days for their appropriate saints and intercessions would not be answered.


Aloysius Lilius:
Before we reach Gregory XIII’s commission to reform the calendar, this good doctor’s contribution must be acknowledged.  Lilius looked at all of the years since the Julian calendar started, compared how many days were recorded for each year with the length of that particular solar year, the variance and the cumulative variance.  This work amounts to over 1600 rows of data and cries out to be loaded on a spreadsheet.  If only this man had a personal computer with a good spreadsheet programme it would have saved him so much work.  I would do anything I could to give him my PC, but it is far too late now.

Lilius, and others engaged in investigating the calendar, were greatly helped in this era by the advances in understanding of mathematics at the time resulting from scholarly research coming from India, Persia, Greece, Arabian and Jewish intellectuals.  Lilius was now able to examine the results of his calculations in the light of current mathematical processes and observe clearly the trends in the information.

The correction to the Julian calendar was, in fact, very simple.  He understood that it would be impossible to get the calendar that we use to fit in perfectly with the solar year as this is a variable.  To keep “our” year fairly close, he calculated that the leap years should be continued, but leap centuries needed to enter the equation.  To be a leap century, the year should be divisible not by four but by four hundred.  The years 1600, 2000 and 2400 are leap centuries but 1700, 1800 and 1900 are not; in other words, for every 400-year cycle there will be 97 leap years (containing a 29th February) not 100.  Also, ten days needed to be deducted from the current Julian calendar, then everything would be back on track.

Unfortunately, Aloysius Lilius died before the commission started its work, but his brother was on the commission and was able to present his report.


Gregory XIII:
Eventually, in the 1570s, Pope Gregory XIII established the long-awaited commission to reform the calendar.  Antonio Lilius (brother of Aloysius) supported the leap-century proposal.  The commission debated for a number of years and went deep into the mathematics and astronomy of the situation discovering, as did Aloysius and others, that the solar year is just too variable for the precision they sought.  Eventually they all came around to the Lilius plan which was presented to the Pope, adopted, sent to various monarchs and authorities around Europe for approval then implemented in 1582.
Ten days were, therefore, dropped from the calendar that year and henceforth the New Year would start on the 1st January each year (not the 25th March).
Roman Catholic countries took up the Gregorian calendar fairly quickly, but it was rejected by the Protestant and Orthodox countries.  Queen Elizabeth and her advisers were quite interested and would have adopted the calendar there and then; however, the Church of England objected strongly to this Papist plot and it was not pursued at that time.
Over time, though, many countries adopted the Gregorian calendar.

Great Britain:
Britain stuck to the Julian calendar for a long time and for international communications was content to have OS (for Old Style) and NS (for New Style) on its correspondence but Parliament was encouraged to correct the Calendar.  The Church of England, this time, gave their full approval.  Britain had to drop eleven days from the calendar in 1752 (as the Julian calendar was even more adrift against the Gregorian calendar when the change was made here) as well as the change to the New Year date and implementation of the Leap Century rule.  The change was made in September of that year with the 3rd to the 13th days “removed”.
To forestall much of the confusion that had happened on the Continent previously, a very comprehensive Bill was placed before and accepted by Parliament: the Calendar (New Style) Act 1750, to resolve as many problems as possible before the change happened.
Legislation provided for payment of wages and interest not to include the eleven lost days; when children should reach the age of majority, soldiers and servants should complete their indentures and prisoners should be released from jail.
There was a significant “Give us back our Eleven Days!” protest, but this was ignored by the Government.  The Church of England, the newspapers and the Establishment got on with the New Style calendar, problems arose, but these were dealt with pragmatically.

The Quarter Days:
In Mr Duncan’s very comprehensive and wide-ranging book (details below), he mentions very briefly that London bankers objected to paying tax on 25th March 1753 (New Style) and the end of the tax year was moved forward eleven days to accommodate that.  I think there was more to it than that as the Act of 1750 covered calculation of wages, salaries, interest etcetera quite comprehensively  Tax, therefore, would only be paid for one year on a “different” date and the Government had already ignored the “Give us back our Eleven Days” movement.  My supposition is that the change was due more to Government finances than any other reason.
Governments raise money by taxation and borrowing.  The Bank of England (for instance) was established in 1694 to raise the sum of £1,200,000.00 to finance the war against France.
Borrowing by way of Treasury Bills and Bonds gives the Government more certainty about their finances than just relying on taxation.  For instance, Treasury Bills maturing up to 2068 are currently trading on the London Stock Exchange.  In the 1750s the situation would be much the same with the Government borrowing long-term on the Markets and paying interest each quarter on the Quarter Days.
The Quarter Days are an old and traditional part of the commercial landscape, they are:
25th March (Lady Day)                       24th June (Midsummer)
29th September (Michaelmas)           25th December (Christmas)
On these days Hiring Fairs would take place in Market Towns across the land where farmers and estate-owners would select and employ workers for the next season.  Rents, repayments and interest instalments for financial transactions would all fall due on the Quarter Days.  Yes, you are right, Christmas Day was a significant working day until relatively recently.
When Charles Dickens wrote “A Christmas Carol” in the 1840s, Christmas Day – the Quarter Day – was very definitely a working day.  Bob Cratchit did not get the day off and, as he was working for Mr Scrooge - a money-lender, this would be a very busy day indeed as any number of customers would be coming in to the office to pay off loans or to pay the interest due that quarter.  Bob would not be able to enjoy the Christmas jollifications with his family until the day’s work was finished and he eventually got home.
When the Bank Holidays Act 1871 was passed (eventually repealed by the Banking and Financial Dealings Act 1971), Christmas Day had already become an accepted Public Holiday and was not the subject of that Act.

Lady Day, the 25th March 1753 being effectively the “old” new year’s day would be the day that a large number of Government Bills and their “coupon” (interest) would be payable, and on the same date each year for a long time into the future.  The Government could see the impact on their finances of continually having to pay interest on its borrowings for the eleven days removed from the calendar.  They baulked at this and unilaterally moved the payment date forward to the 5th April each year to save this expense.  This new date obviously stuck and from then on became the British Government’s financial year end, thus breaking the link with the Quarter Days forever.

Every now and then a minor adjustment takes place in the calendar year, but the addition of an extra second now and again is not something that we often notice.

Occasionally the calendar does show an intriguing juxtaposition, such as Ash Wednesday (the start of Lent) being followed exactly a week later by National No Smoking Day.

Recommended reading
David Ewing DUNCAN “The Calendar.  The 5000-year Struggle to Align the Clock and the Heavens – and What Happened to the Missing Ten Days.” Fourth Estate – 1998.
Jacqueline De BOURGOING “The Calendar.  Measuring Time.  New Horizons.” Thames and Hudson – 2001.

(*) Glenn Research Centre – NASA:

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