Welsh income tax codes to have ‘C’ prefix
28 March 2018
It has been confirmed that a ‘C’ code will be applied to the Welsh Taxpayers Notice of coding when Welsh Income Tax becomes devolved from April 2019.
At a recent meeting with the British Computer Society (BCS), this subject was raised and it has now been confirmed by HMRC that a Welsh taxpayers code will have a ‘C’ prefix.
We have been informed that an article will be published on GOV.UK shortly and in HMRC’s next Employer Bulletin.
Welsh devolved taxes
This year sees the first Welsh taxes come into play with land transaction tax and landfill disposals tax replacing stamp duty land tax and landfill tax from 1 April 2018.
From April 2019, the National Assembly for Wales will be able to vary the rates of income tax payable by Welsh taxpayers. Responsibility for many aspects of income tax will remain with the UK government, and the tax will continue to be collected by HMRC for Welsh taxpayers.
From April 2019, the UK government will reduce each of the 3 rates of income tax – basic, higher and additional rate – paid by Welsh taxpayers by 10p. The National Assembly for Wales will then decide the 3 Welsh rates of income tax, which will be added to the reduced UK rates. The combination of reduced UK rates plus the Welsh rates will determine the overall rate of income tax paid by Welsh taxpayers.
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One would assume that as the Welsh word for Wales is Cymru, then that is why the decision to go with a ‘C’ code has been made. |