HMRC writes to taxpayers about Welsh rates of income tax

With four months to go, HMRC has written to two million individuals in Wales ahead of the introduction of the new Welsh rates of income tax (WRIT), outlining residency and compliance issues

From 6 April 2019 taxpayers will pay WRIT if they have a main residence in Wales, regardless of where they work, which may mean changes to the amount of tax they pay on wages, pension and most other taxable income.

Tax rates on dividends and savings interest remains the same as for the rest of the UK, and there are also no changes to personal allowance.

Income tax will continue to be collected from pay and pensions through PAYE and self assessment in the same way it is now. But from 6 April, the Welsh government will set its own income tax rates and WRIT taxpayers will receive a new tax code, starting with C for Cymru.

Angela MacDonald, director general for HMRC customer services, said: ‘We want to help people pay the right tax so we’re writing to customers to let them know that they’ll now be paying WRIT.

‘Customers don’t need to do anything right now but should make sure to keep HMRC informed if their details change in the future.’

More information on the Welsh rates of income tax here:

Report by Pat Sweet

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