Welsh Government Income Tax
Deadline Has Passed
From the 1st April 2018, the Land Transaction Tax replaced the Stamp Duty Land Tax and the Landfill Disposals Tax replaced the Landfill Tax in Wales.
From 6 April 2019 the next tax to change in Wales will be our income tax and how it will be proportionally transferred to the Welsh Government and spent on the public services of Wales.
At present all our income tax is collected by the UK Government and is used to fund spending all over the UK
Why the Changes?
The UK Parliament passed a legislation – the Wales Act 2014 – to transfer more power to the Welsh Government following the commission’s report from the Independent Commission on Funding and Finance for Wales and the Commission on Devolution in Wales in regard to advice on how Wales should be funded in the future.
The Welsh Tax has followed on from the success of the land transaction tax and the landfill disposals tax which kicked off in 2018, these are the first Welsh taxes for approximately 800 years.
Having the Welsh rates of income tax means a portion of our taxes will be spent on public services such as schools, hospitals and roads in Wales alone.
So, if you live in Wales, regardless of where you work you will be a Welsh taxpayer.
From April, 10p in every pound of income tax you pay will go to the Welsh Government. The rest will go to the UK government.
At the moment, 92% of the Welsh Government’s income comes from the UK Treasury.
… from next April that will fall to 79%.
That does not mean that the Welsh Government will have less income, rather that 10% of the income tax paid by residents in Wales will go directly to the devolved government and not through the Treasury.
We will all still pay our tax to HMRC. But from there it will be divided between the two treasuries in Cardiff and London.
What will stay the same?
- The Welsh Government have told us that the following will remain the same.
- Income tax will continue to be collected by HMRC for Welsh taxpayers in the same way it is now.
- The personal allowance – the amount people can earn before they start paying tax – will continue to be the same as it is for the rest of the UK.
- The point at which people start to pay the higher and additional rates of income tax will stay the same as in England and Northern Ireland.
- Responsibility for taxing income from savings and dividends will remain with the UK Government.
With all political parties in Wales planning for the 2021 National Assembly elections and setting their manifestos as to what they would do with the income tax should they be successful if they formed the next Welsh Government, we shall have to wait and see if the Welsh rates of income tax proves to be a positive and effective outcome for Wales.
Happy Birthday 🍾
So, all of us at EasyBooks would like to wish Nicola a very Happy Birthday and a blessed year ahead. 🎂 🎈
Our Deadline Has Passed
Do you still have 17/18 year end Self-Assessment paperwork to bring in? If yes, then bring it as soon as possible.
Please note that any paperwork you bring in now and until January cannot be guaranteed to be submitted on time.
There will also be an additional 20% charge to the total of the final invoice.
Please also note that we are not obligated to remind people individually to bring in their end of year paperwork.
Thank you in advance.
- Posted by EasyBooks
- On 30th November 2018
- 0 Comments