The short version: Since 2019, Wales sets its own Income Tax rates for Welsh taxpayers. Currently they match England’s rates, but the Welsh government can change them.
Who pays Welsh rates?
People who live in Wales. Your tax code will have a “C” prefix if HMRC considers you a Welsh taxpayer. The residence test is based on where you live, not where you work.
Are the rates different?
Right now, Welsh rates mirror England’s rates. But the Welsh government has the power to set different rates, and this could change in future budgets.
Does it affect other taxes?
No. Welsh rates only apply to non-savings, non-dividend Income Tax. National Insurance, VAT, Capital Gains Tax, and other taxes are still UK-wide.
What if you move?
Tell HMRC if you move to or from Wales. They’ll update your tax code. The “C” prefix (or removal of it) tells your employer which rates to apply.
Live in Wales and have tax questions? We can help with your situation.
