Draft Welsh Budget: No Changes to Welsh Rates of Income Tax
20 December 2021
The draft Budget 2022 to 2023 for Wales has been released today (20 December 2021).
We were keeping an eye out for changes to the Welsh Rates of Income Tax (WRIT), but the draft has elected to keep these rates the same as previous years. Therefore, no changes will be made for the 2022-23 tax year.
The WRIT process was introduced in 2019, this process sees the UK government reduce the income tax rates for Wales by 10% for each bracket. The Welsh government then has control over this 10%, deciding whether to retain parity or set different rates to England and Northern Ireland.
In the draft Budget it is stated that “In line with its commitment not to take more in Welsh Rates of Income Tax from Welsh families for at least as long as the economic impact of COVID 19 lasts, the Welsh Government proposes to set Welsh Rates of Income Tax for 2022-23 at 10p.”
There is no mention of the proposed changes to the Council Tax Attachment of Earnings Orders currently under consultation. There is little else of note for payroll professional, the rest of the budget covering mainly spending proposals.
There may be further changes to this for the final Budget, set to be released in March 2022.
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