1st March 2019
It’s official, March is here which means the start of the new financial year is just around the corner. It’s the busiest time of year for payroll teams, not least because April always brings changes to systems and procedures.
Today seems the perfect day to talk about a change that is looming Wales, as it’s St David’s Day, Wales’ national holiday. Traditionally a day for wearing daffodils and leeks, and eating classic Welsh food such as cawl and Welsh Rarebit, we are going to spend it talking about Welsh taxes!
From 6th April 2019, those with a main residence in Wales and who pay Income Tax there will pay rates of Income Tax set by the Welsh Government. Additionally, PAYE employees in Wales are to receive a new tax code (beginning with C), which includes those whose income is under the tax threshold.
The way this will work in relation to HMRC is that they will continue collecting Income Tax, but the Welsh Government can vary the rate paid by their resident taxpayers – therefore people residing in Wales may pay a different rate of Income Tax to those elsewhere in the UK.
This time of year can certainly feel overwhelming, and it can cause many companies to encounter stress and worry about keeping on top of legislation, for the sake of their business and importantly, for the sake of their employees. It’s all too easy to miss some news or make a simple mistake. This is emphasised by the fact that we are now seeing different tax systems in Scotland and Wales, rather than the UK all being under the same umbrella.
Here are some ways you can avoid errors at the start of the new financial year:
- Follow news sources and blogs which will flag your attention towards upcoming changes that you may need to have on your radar
- Ensure your payroll provider is accredited and trustworthy so that you know you can put your confidence in them
- Be vigilant with your own payroll data – when there are other things to focus on, mistakes become more likely. Be careful about getting distracted by new things and letting your guard down about the main crux of your data
Don’t panic – if you take the time to make sure you have the correct support and do the right research, there’s no reason why the new financial year should hamper your successes, regardless of all the new things to keep on top of. Oh, and Dydd Gŵyl Dewi Hapus!