The Welsh rates of Income Tax will come into effect from
6 April 2019 – the 2019 to 2020 tax year onwards.
Identifying Welsh Taxpayer Employees
Employers will not be responsible for identifying
Welsh taxpayers, this will be done by HMRC.
HMRC will tell you which tax code is appropriate to apply
to an employee in advance of the introduction of the Welsh
rates of income tax. Tax codes for Welsh taxpayers will be
prefixed with a ‘C’.
If the employee has been identified as a Welsh taxpayer it
will be because they:
• are resident in the UK for tax purposes
• have had a main place of residence in Wales for more
of the year than in any other part of the UK
It’s the employee’s responsibility (not the employers) to notify HMRC of a change
of address. However, if you have employees moving from Wales to another
part of the UK or vice versa, you should advise employees to contact HMRC to
change their residential address and notify the date of the move. This will ensure
HMRC can determine the employee’s Welsh taxpayer status.