What Financial Week Are We In?

A financial week is a way of dividing the UK tax year into weekly periods for accounting, payroll, and tax purposes. Unlike calendar weeks that follow the Gregorian calendar, financial weeks are based on the UK tax year, which runs from April 6th to April 5th of the following year.

Financial Week 1 starts on April 6th (the first day of the tax year) and each subsequent week follows in sequence. Most financial years contain 52 weeks, but occasionally there may be 53 weeks in a tax year due to leap years and the specific day of the week that April 6th falls on.

Financial weeks are important for several reasons:

• Payroll Processing: Many UK employers process payroll on a weekly basis aligned with the tax year.
• Tax Calculations: HMRC uses tax weeks for various calculations, including National Insurance contributions.
• Benefits and Pensions: Some benefits and pension payments are calculated using tax weeks.
• Financial Reporting: Businesses may use financial weeks for internal reporting and budgeting.
• Seasonal Business Analysis: Comparing performance by financial week year-over-year can provide more accurate insights than calendar weeks.

The key differences between financial weeks and calendar weeks include:

• Starting Point: Calendar weeks typically start on Monday (or Sunday in some systems), while financial weeks start on specific dates aligned with the tax year.
• Year Boundary: Calendar weeks follow the January to December year, while financial weeks follow the April to April tax year.
• Consistency: The dates for financial weeks remain consistent year to year in relation to the tax year, making them more useful for tax and accounting comparisons.
• Week Numbering: Calendar week numbering (ISO weeks) restarts each January, while financial week numbering restarts each April with the new tax year.