HMRC has started to write to taxpayers ahead of the introduction of the Welsh rates of income tax (WRIT) on 6 April 2019.
From this time, taxpayers will pay the WRIT if their main residence is situated in Wales. The Welsh government will set the rates. It intends to use the money raised by the WRIT to fund public services, such as the NHS and schools.
Workers with a main residence in Wales will pay tax at the Welsh rates via Pay as You Earn (PAYE). HMRC will add a ‘C’ to the start of individuals’ tax codes so that affected taxpayers pay the correct rates.
Those who opt to file their self-assessment tax return online will be required to tick a box in order to tell HMRC that they pay the WRIT.
Commenting on the matter, 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.’
Additional information on the WRIT can be found here.