UNITED KINGDOM - Welsh rates of income tax

April 2019

From 6 April 2019, your employees may be subject to Welsh rates of income tax. HMRC will be responsible for identifying when a taxpayer is subject to Welsh income tax rates and will inform you of their new tax code. An individual will be identified as a Welsh tax payer if:

They are resident in the UK for tax purposes
And they have had a main place of residence in Wales for more of the year than in any other part of the UK

There will be no change in the way you report or make payments to HMRC, other than the change in tax code. Personal allowances will remain the same as the UK and tax bands will remain the same as England and Northern Ireland.

If you have any questions on how this will affect you going forward, please do contact one of your client team.

Andrew Bailey
andrew.bailey@bdo.co.uk