Income Tax in Wales

From 6 April 2019 you’ll pay new Welsh Income Tax rates if you live in Wales. Those rates will be set by the Welsh Government.

This means the amount of tax you pay on your wages, pension and most other taxable income may change.

You’ll continue to pay the same tax as the rest of the UK on dividends and savings interest. Your Personal Allowance - the amount of income you do not pay tax on - also stays the same as the rest of the UK.

This guide is also available in Welsh (Cymraeg).

Who pays the Welsh rates

You’ll pay the Welsh rates if you live in Wales.

You must update your address with HMRC if your main home is in Wales but you do not think they have your correct address.

If you move to or from Wales

You’ll only pay the Welsh rates if you live in Wales for longer than anywhere else in the UK during a tax year (6 April to 5 April the following year).

The new rates you pay will be backdated to the start of the tax year in which you moved. The tax taken from your wages or pension will be adjusted automatically so you pay the right amount across the whole tax year.

Update your address with HMRC if you move to or from Wales.

If you live in more than one home

If you have a home in Wales and one elsewhere in the UK, tell HMRC which is your main home.

Your main home is usually where you live and spend most of your time. It does not matter whether you own it, rent it or live in it for free.

Your main home may be where you spend less time, if that’s where:

  • most of your possessions are
  • your family lives, if you’re married or in a civil partnership
  • you’re registered for things like your bank account, GP or car insurance
  • you’re a member of clubs or societies

This might apply to you if you live away because of your work, for example you’re a lorry driver, an offshore worker or in the armed forces.

HMRC has detailed information about working out which is your main home.

How you pay

You’ll pay tax at the Welsh rates through PAYE if you’re employed, or have it deducted by your provider if you’re getting a pension. HMRC will add a ‘C’ to the start of your tax code so that you pay the right rates.

If you fill in a Self Assessment tax return online for the 2019 to 2020 tax year, there’ll be a box for you to tell HMRC you pay the Welsh rates.