Welsh taxpayers pay tax at the Scottish rate

Several Welsh PAYE taxpayers have paid income tax at the wrong rate because their employers have used Scottish rates instead. The chair of the National Assembly for Wales’s finance committee Llyr Gruffydd said this was ‘deeply disappointing’ given HMRC’s assurances that mistakes like this would not happen.

He said: ‘We raised concerns about the flagging process for identifying Welsh taxpayers during our inquiries into fiscal devolution and the Welsh government’s draft budget. On each occasion we were told the matter was in hand and the lessons from the devolution of income tax powers to Scotland where there were similar issues had been soundly learned and would be put into effect.’

Jim Harra HMRC deputy chief executive and second permanent secretary was ‘confident that HMRC sent correct “C” codes to employers for Welsh taxpayers’. In a letter to Llyr Gruffydd Mr Harra said: ‘We have been made aware...