From April 6, 2019 Wales will introduce its own rates of Income Tax.
As of the next tax year, if you live in Wales and pay Income Tax, some of this will be paid to the Welsh Government.
This is a change from the current system, where all Income Tax from Wales is paid to the UK Government to fund spending across the UK.
The Welsh rates of Income Tax will be set by the Welsh Government and were initially introduced in its draft budget of October 2018.
These changes may affect the amount of Income Tax you pay.
Income Tax will continue to be collected in the same way as it is now by HMRC, you do not have to do anything unless you move home.
“The amount of tax you pay on your wages, pension and most other taxable income may change,” said Peter Way-Rider, tax manager at Ellis & Co Chartered Accountants and Business Advisers.
“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 – will also stay the same as the rest of the UK.”
For further information about the Welsh rates of Income Tax click here.
For further information on this or any other tax matter contact Peter on 01244 343504.