Welsh Tax

Warning: Don't modify these rates and thresholds manually. To ensure the rates are correct, use the Copy Statutory Rates command.

Use the Welsh Tax form (accessible from the Payroll - Utilities menu) to view Welsh Income tax rates.

Employees are identified as Welsh taxpayers using the Taxpayer box for their record on the Payroll - Processing form.

The Welsh government can vary the rate paid by Welsh resident taxpayers. This means that they could pay different rates of income tax than taxpayers in the England and Northern Ireland. In practice the UK government will reduce the three rates of income tax by 10p. The Welsh government will then decide the rates that will be added to the reduced UK rates. A Welsh rate of 10% would mean no change from the UK rates.

For example, assuming none of the current UK rates of tax change, if the Welsh parliament sets a rate of 8%:

- the Welsh basic rate would be 18% (20% –10% + 8%)

- the Welsh higher rate would be 38% (40% - 10% + 8%)

- the Welsh additional rate would be 43% (45% - 10% + 8%).

If the Welsh rate is set at 11%, the basic rate would be 21%, the higher rate 41% and additional rate 46%.

For details please visit www.gov.wales.