Welsh" income tax

brewerdave · 14 December 2018 at 12:54PM

Had a letter today about the Welsh Assembly's right to now set partial tax rates (as per Scotland). As it happens they aren't proposing to use the new powers in the first tax year (2019-20) but it got me thinking. How do they ensure that they get their "cut"? eg paying Company is based in England, the employee works at a plant in England and the employee's tax office is in England, but the employee lives in Wales ?

Dazed_and_confused · 14 December 2018 at 1:02PM

HMRC have to sort it out.

There is more detailed information on the Scottish governments website about their work with HMRC and I would suspect the Welsh government have a similar agreement but you are seeing it slightly more complicated than it really is,

https://www.gov.scot/binaries/content/documents/govscot/publications/factsheet/2018/12/scottish-income-tax-2019-2020/documents/service-level-agreement-for-operation-of-scottish-income-tax-by-hmrc/service-level-agreement-for-operation-of-scottish-income-tax-by-hmrc/govscot%3Adocument

paying Company is based in England - irrelevant

the employee works at a plant in England - irrelevant

and the employee's tax office is in England - irrelevant (is there even such a thing as someone's tax office anymore)

the employee lives in Wales ? - sort of relevant. It is the employees (any individual in reality) residency status for the tax year overall which counts.

Not sure what happens in a leap year where someone lived in Cardiff for 122 days, London 122 days and Glasgow 122 days

agrinnall · 14 December 2018 at 1:17PM

As D&C says, it's where you live that matters. I work for a Scottish organisation but live in England, and my tax code does not include the S for Scottish tax rates. It's slightly benefical to me to live in England at my level of salary, but I miss out on other things such as buss pass at 60 and free presecriptions before 60 (I've recently turned 60 so these things are fresh in my mind!).

brewerdave · 15 December 2018 at 1:09PM

Thanks for the clarification - as a pensioner I was just interested because the pension administration is in England and they definitely give an English tax office to write to ,with queries!
Came up in an earlier discussion with my family, because there is a belief that many workers from the Bristol area will move to South Wales when the bridge tolls are removed this weekend to seek cheaper housing.

Uxb · 15 December 2018 at 4:04PM

...that is until the welsh government cranks up the tax rates
The recent Scottish changes mean all except low earners are going to pay more.

molerat · 15 December 2018 at 4:53PM

I live in Scotland, my pension is paid from England and the tax office is in Wales. My tax code is prefixed S due to my home address so all tax taken is sent to Scotland so I would assume Wales will have a [STRIKE]W[/STRIKE] C prefix and have a similar arrangement with HMRC.

molerat · 15 December 2018 at 4:55PM

Uxb wrote: »

...that is until the welsh government cranks up the tax rates
The recent Scottish changes mean all except low earners are going to pay more.

Interesting FAI chart of how much more / less you would pay by job area. No mention of teachers, nurses, doctors, firefighters etc, I wonder why that would be

https://fraserofallander.org/scottish-economy/fiscal-policy/scottish-income-tax-policy-2019-20/

Dazed_and_confused · 15 December 2018 at 5:05PM

I would assume Wales will have a W prefix and have a similar arrangement with HMRC.

According to gov.uk it's going to be a C prefix in Wales, not W.

moneyistooshorttomention · 15 December 2018 at 5:53PM

Uxb wrote: »

...that is until the welsh government cranks up the tax rates
The recent Scottish changes mean all except low earners are going to pay more.

Not good news to read your second sentence here.

I am certainly concerned (now that I'm living in Wales) as to whether the Welsh Assembly might try charging me more tax on the excuse I'm in the Welsh part of the country, rather than the English part.

It would add insult to injury that I'm basically getting less for my tax than I used to before moving here. I got the free buspass at 60 (rather than about 3 years later) - but that has been the only advantage. On the other hand - any time I feel a bit ill with anything I panic like mad when I think what the medical facilities available to me here are like compared to what I'm used to.

I do hope to goodness they aren't going to start making excuses to charge more after we've had a year or two to get used to the idea of a bit of our tax being split off in this way. Obviously all the more so as they spend (I could think of another word for it:cool:) some of our money on something the Government doesn't (ie translating everything into Welsh as well as English). They'll want the money to waste on that from somewhere or other - fingers crossed it still comes from whatever direction it's coming from now iyswim and they won't be able to get away with that.

molerat · 16 December 2018 at 10:23PM

Don't forget Council Tax if you are in band E and above as in Scotland, easy cash grab !

Welsh" income tax

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