Welsh income tax applies only to income not related to savings and without dividends (profits, pensions and most other income (imp). Welsh taxpayers pay the same tax as the rest of the United Kingdom on savings and dividend income. Certain tax rates may vary from country to country in the United Kingdom, so it's important to familiarize yourself with the rates that apply to you. In addition, the self-assessment tax return will be adapted so that Welsh taxpayers can inform HMRC that the Welsh tax applies.
If a person moves to or from Wales in the course of a tax year, they will be a Welsh taxpayer if they live in Wales for at least the same amount of the tax year as they live in any other country in the United Kingdom. HMRC remains responsible for the collection and management of Welsh income tax and, as such, it is not a fully transferred tax and remains part of the current UK income tax system. Add respectively the Welsh base rate, the Welsh upper rate and the Welsh additional rate (as the case may be) established by the National Assembly for Wales for that year. These laws allowed the National Assembly of Wales to set tax rates on non-savings and non-dividend income for those who define themselves as Welsh taxpayers.
HMRC continues to collect and manage its taxes, but the Welsh rates will be applied to the calculation of your income tax. The time you spent living in Wales during the tax year (from 1 July to 5 April) was longer than the time you lived in England (from 6 April to 30 June), so you are a Welsh taxpayer throughout the tax year. The power to vary the Welsh income tax rate by band has been delegated, so that the established rates could differ between basic, higher and additional. If HMRC changes a person's tax rate, the new rate is retroactive to the start of the tax year in which the measure occurred.
The rate paid by Welsh taxpayers is calculated by reducing the basic, upper and additional rates of UK income tax by 10 percentage points, and then adding the individual rates set annually by the National Assembly of Wales. The English and Welsh versions were updated following the ratification of Welsh income tax rates. The Welsh Government has set the first Welsh income tax rates at 10 pence, so the income tax rates paid by Welsh taxpayers will remain the same as those paid by English and Northern Irish taxpayers. The point at which people start paying the highest and additional rates of income tax is the same as in England and Northern Ireland.
If you need help calculating the amount of tax you must pay, you can find a specific tax calculator on the WRA website.
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