Welsh Rates of Income Tax

15 May 2019


This information was provided by HMRC’s Software Developers Support Team (SDST) and although it is aimed at developers, employers and payroll practitioners may also find it useful.



Following the introduction of Welsh rates of income tax from 6 April 2019,  SDST has discovered that a small number of employers are not operating PAYE correctly for their Welsh employees.  Welsh taxpayers are identified by a C prefix on their tax codes, this will be a “C” within the TaxRegime attribute on any xml outputs.


The issues identified so far include:


  • Welsh employees being reported on an FPS with no C prefix within @TaxRegime.

  • Welsh employees being reported on an FPS with an S prefix within @TaxRegime. The S prefix should only be used for individuals liable to Scottish income tax.