Welsh taxpayers charged the wrong rate of income tax in HMRC error

Released 14 May 2019

HMRC have admitted applying a Scottish tax code to some Welsh taxpayers meaning they have been paying the wrong rate of tax.

The Welsh Rates of Income Tax (WRIT) was introduced in April 2019. Welsh taxpayers are assigned a ‘C’ prefix in their tax code denoting where they live. However, HMRC has admitted incorrectly applying an ‘S’ prefix instead meaning some people in Wales have been paying Scottish income tax rates.

The Chair of the National Assembly’s Finance Committee issued the following statement after the error emerged:

“HMRC’s admission is deeply disappointing as this Committee was repeatedly given assurances that mistakes like this would not happen.

“We raised concerns about the flagging process for identifying Welsh taxpayers during our inquiries into fiscal devolution and the Welsh Government’s draft budget.

“On each occasion we were told the matter was in hand and the lessons from the devolution of income tax powers to Scotland, where there were similar issues, had been soundly learned and would be put into effect.

“We are seeking an immediate explanation of how this has happened and will be asking representatives from HMRC to appear before this Committee in the near future.”

For more information, see Welsh taxpayers charged the wrong rate of income tax in HMRC error – Statement from the Chair of the Finance Committee.

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