Welsh Rates of Income Tax – Coming Next Year
From April 2019, the Welsh Government will have partial control of income tax payable by Welsh taxpayers.
The main responsibility for most aspects of income tax will remain with the UK Government, and will still be collected by HMRC for Welsh taxpayers.
However, from April 2019, the UK Government will reduce the 3 rates of income tax – basic, higher and additional rate – for residents of Wales by 10p. The Welsh Government will then be responsible for deciding the 3 Welsh rates of income tax and will combine the tax rates accordingly.
If the National Assembly approves each of the Welsh rates of income tax at 10p, there will be no change to that currently paid. However they may well decide to set different rates to reflect Wales’ unique social and economic circumstances.
Tax codes for those under PAYE will now begin with the letter C, while those completing self-assessment returns will be asked for their country of residence when completing their forms.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.