The Welsh rate of income tax (WRIT) will come into effect from 6 April 2019. A taxpayer who is resident in Wales or who has their main place of residence in Wales will pay the WRIT.
The task of identifying whether a taxpayer is liable to the WRIT will not fall on employers and pension providers – HMRC will identify Welsh taxpayers from information held on their systems. Welsh taxpayers will be identified from their tax code, which from 2019/20 will begin with a ‘C’.
HMRC are to publish further guidance for employers prior to the introduction of the WRIT.
It should be noted that where a taxpayer is a Welsh taxpayer, that status will apply for the whole tax year – it will not be possible to apply Welsh taxpayer status for part of the year only.
Guidance on the introduction of the WRIT can be found on the Gov.wales website.