HMRC will continue to collect income tax, but the Welsh government will set the rate paid by Welsh resident taxpayers.
However, the Welsh government has committed not to increase income tax rates in Wales for the duration of the current Assembly, which is due to continue until May 2021.
You’ll pay tax at the Welsh rates through PAYE if you’re employed, or have it deducted by your provider if you’re receiving a pension.
HMRC will add a ‘C’ to the start of your tax code so that you pay the right rates.
If you fill in a self assessment tax return online for the 2019 to 2020 tax year, there’ll be a box for you to tell HMRC you pay the Welsh rates.
For more information please see visit the Welsh Government website.