Who will pay Welsh rates of Income Tax?
A taxpayer who is resident in the UK for tax purposes and has their sole or main place of residence in Wales for more of the tax year than in any other part of the UK will pay Welsh rates of Income Tax (WRIT).
HMRC will identify Welsh taxpayers based on information held within its systems. Employers and pension providers will not decide an individual’s Welsh taxpayer status. Welsh taxpayer status applies for a whole tax year and can’t be applied for part of a year.
From April 2019, Welsh resident taxpayers employed or in receipt of a pension will have a tax code beginning with C. Those completing a Self Assessment tax return online will be asked about country of residence on their return.