Welsh taxpayers urged to check payslips following income tax code mix-up

16 May 2019

Following an income tax code mix-up, HMRC has urged Welsh taxpayers to check their payslips to ensure the correct amount of tax has been deducted by their employer.

HMRC recently revealed that some Welsh taxpayers were mistakenly given Scottish income tax codes by their employers. Consequently, Welsh taxpayers have been charged Scottish income tax rates. HMRC stated that it doesn't know how many Welsh taxpayers are affected.

Commenting on the issue, Llyr Gruffydd, Chair of the National Assembly for Wales' Finance Committee, said: '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.'

From April 2019, the Welsh government has the right to vary the rates of income tax payable by Welsh taxpayers. The new tax codes for Welsh taxpayers begin with the letter 'C'.

The tax on income is different for taxpayers who are resident in Scotland. The Scottish income tax rates and bands apply to employment income, self-employed trade profits and property income. Scottish tax codes begin with the letter 'S'.

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