Happy Old New Year: Why March 25th Still Matters (Especially for Your Taxes)
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1752 and all that. ProACT Sam Orgill jumps to it at the start of a new season, new year and new tax returns due.
Old ways
Call me old fashioned but happy new year 25th March.
Before Christianity the calendar was based around the seasons - the equinox.
Spring is planting time and the start of a farming cycle and so was considered the start of the year.
Hence the spring equinox 25th March was the start of the year.
Rome was built on 10
The Romans adopted this and used 10 months in a year - like the Romans would. Hence the name of the 7th, 8th, 9th, 10th months of the Roman calendar based upon Latin numbers septem, octo, novem & decem.
July and August are named after Julius Caesar, Roman Dictator for Life, and his adopted son Augustus - the first Emperor of the Roman Empire.
The Roman Empire was officially divided into Eastern and Western halves in 285 AD by Emperor Diocletian for administrative purposes. The Western Roman Empire fell in 476 AD, but the Eastern Roman Empire, based in Constantinople (modern-day Istanbul), continued as the Byzantine Empire until 1453, leaving behind a legacy of Orthodox Christianity.
Christians embraced 25th March—known as Lady Day or the Annunciation—as the conception date of Mary, placing Jesus’ birth nine months later in December.
The significance of the Easter holiday period around this time reflects the earlier tradition of the new year beginning in spring, a custom that lingered in various cultures and calendars for centuries.
Brexit Britain not fully into Europe
Until 1752 Great Britain kept March 25th as New Year’s Day - a tradition rooted in older seasonal and religious calendars. Interestingly, Persians still celebrate Nowruz, their new year, around the spring equinox.
In Europe the change to January 1st came from a Catholic Pope Gregory XIII in Rome in 1582 introducing the Gregorian calendar to replace the Julian calendar which had drifted out of sync with the solar year due to its slightly inaccurate calculation of the year’s length.
Over the centuries, the Julian calendar’s miscalculation (about 11 minutes per year) caused the equinox—and thus the seasons—to drift away from calendar dates.
To fix this, the Gregorian reform:
Dropped 10 days to realign the calendar with the equinox,
Moved New Year’s Day to January 1st (which had earlier Roman precedent),
And introduced the leap year system, refining the rule to exclude most century years unless divisible by 400.
February, already the shortest month, remained so—but the leap year system helped prevent further seasonal drift.
Taxing issue
In Great Britain the switch did not bring quite on new year day but had an unintended consequence leading to riots and protests.
It was almost like the politicians didn’t know what they were doing in Britain - back then as well.
The tax year was also New Year’s Day in the Great Britain.
The calendar year lost 11 days from September 1752 as a one off adjustment to realign the calendar.
The shorter year was seen by the people as a way of increasing taxes for that year.
A compromise solution was finally added with the UK tax year for 1752/1753 extended to a year end 5/4/1753.
11 days later.
Of course they would adjust and correct it in time. Sometime not year.
So until 2025 the UK tax year remains 5th April.
New tax year - full year returns are due
At the end of a tax year new tax returns become due now.
UK tax returns can be submitted from the start of April.
A UK tax return is due if you have any fixed income from the UK including property rental income and capital gains on sales of UK property and crypto and shares or business.
In addition if the UK tax office ask you to complete a return then you must - even if nil.
Changes to domicile and non domicile rules also apply increasing the scope and requirements for UK domiciled expats to have an inheritance tax return completed on worldwide assets on their death.
Remote working expats could have obligations for tax returns in the country of employment and their tax residence.
Contact us for tax advice , registration , returns and rebates
Cyprus tax year end in sync
The Cyprus year ends on the December calendar year but returns become due from March also.
There are more changes this year so again it’s a moveable deadline. Assume individuals should complete by July and audited business by next March to be sure.
This year if your ‘income’ for income tax in Cyprus is below €19,500 you don’t have to complete a tax return
The complication is numerous and listed below. If in doubt contact us to confirm your requirements.
If you died or sell property or gift property to family or trust to avoid UK Inheritance Taxes then the Cyprus Tax office will require at least the last 5 years full tax returns to be completed.
For this reason ProACT advise all expat clients to complete a tax return in Cyprus each year.
Special fixed rate taxes applying to incomes requires tax to be paid by self assessment return and maybe in a full tax return for property rental, dividends, interest.
Also the ‘health tax’ which is due on all world wide income from whatever source.
If you are a self employed or contractor business or a cyprus company then a tax return must be completed each year.
This is in addition to your VAT and Social insurance obligations.
If you have Cyprus property rental income including using AirBnB then you need a tax return. Any owner of a cyprus real estate must now have a Cyprus tax number even if they are not Cyprus tax resident as individuals.
Contact us for tax advice, registrations, returns and rebates.
Don’t worry about your health
If you are an expatriate living or working Cyprus, then you do not automatically qualify for the Cyprus State Healthcare - GESY .
To receive GESY cover you must pay Cyprus social insurance, receive a transfer of health benefits from the UK or your home EU country, be a permanent resident or be receiving a UK, Cyprus or EU state pension.
Contact us for residency and health cover advice, registrations, returns
Don’t worry about State Pensions
If you are living abroad and want to top up UK pension contributions then you can. It’s a difficult process for secured income for anyone who has worked more than 10 years in the UK.
Contact us for state pension top up advice, registrations, returns and payments.
ProACT have solutions and guidance for Family & Business to protect your wealth across borders and down generations.
For help and guidance, contact us.
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