Welsh tax codes

What the C says

GOV.UK says the letter C at the start of a code means your income or pension is taxed using the rates in Wales.

You pay tax at the Welsh rates through PAYE if you are employed, or have it deducted by your provider if you get a pension. GOV.UK says HMRC will add a C to the start of your tax code so that you pay the right rates.

GOV.UK's guidance for employers says S takes tax from income in the Scottish tax bands, for an employee whose main home is in Scotland, and C takes tax from income in the Welsh tax bands, for an employee whose main home is in Wales.

The Welsh rates for 2026 to 2027

GOV.UK's table shows the Welsh tax rate in each band for 2026 to 2027 if you have a standard Personal Allowance of £12,570.

You pay the same tax as the rest of the UK on dividends and savings interest.

The Welsh flat-rate codes

Codes written as one unit take a single rate from all income, and are for a second job or pension.

GOV.UK's guidance for employers says CBR, CD0 and CD1 take tax from all income at the basic, higher and additional rate in Wales, and are for a second job or pension.

• GOV.UK says CBR means all your income from this job or pension is taxed at the basic rate in Wales, usually used if you have more than one job or pension.
• GOV.UK says CD0 means all your income from this job or pension is taxed at the higher rate in Wales, usually used if you have more than one job or pension.
• GOV.UK says CD1 means all your income from this job or pension is taxed at the additional rate in Wales, usually used if you have more than one job or pension.

GOV.UK says C0T means your Personal Allowance (Wales) has been used up, or you have started a new job and your employer does not have the details they need to give you a tax code.

Who pays the Welsh rates

You pay Welsh Income Tax rates if you live in Wales. These rates have been set by the Welsh Government.

GOV.UK says you only pay the Welsh rates if you live in Wales for longer than anywhere else in the UK during a tax year (6 April to 5 April the following year). The new rates are backdated to the start of the tax year in which you moved, and the tax taken from your wages or pension is adjusted automatically so you pay the right amount across the whole tax year.

GOV.UK says you must update your address with HMRC if your main home is in Wales but you do not think HMRC has your correct address, and to update it if you move to or from Wales.

Reading the rest of the code

The C sits in front of a code that is read the same way as any other.

The numbers in your tax code tell your employer or pension provider how much tax-free income you get from them in that tax year.

GOV.UK's guidance for employers says you usually multiply the number in a tax code by 10 to get the total amount of income that can be earned before being taxed. Its example: with the code 1257L, an employee can earn £12,570 before being taxed.

The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on.

• 1257LThe standard code, read part by part
• Letter LThe letter L and the allowance it stands for
• Emergency tax codesW1, M1, X and NONCUM

If the code looks wrong

HMRC usually updates your tax code using information it gets from your employer or pension provider. GOV.UK says that if your tax code is wrong, it is usually because HMRC has incorrect or missing information, and that to correct it you check and update the details HMRC has about you.

GOV.UK says using the online service is the quickest way to check and update your details: sign in to the Check your Income Tax online service, check your employment, pension, estimated taxable income, company benefit and expenses details, and update your details if there is anything wrong or missing.

If you think your tax code is wrong and you cannot use the online service, GOV.UK says you can contact HMRC. HMRC's Income Tax enquiries line is 0300 200 3300. The Income Tax enquiries line is open Monday to Friday, 8am to 6pm, and closed on bank holidays.

• Tax code notice (P2)The letter HMRC sends when your code changes

GOV.UK pages on this

• GOV.UK: Income Tax in WalesGOV.UK's Income Tax in Wales page: the rates and who pays them.
• GOV.UK: What your tax code meansGOV.UK's page on what your tax code means: the numbers, the letters and a worked example.
• GOV.UK: Income Tax rates and Personal AllowancesGOV.UK's Income Tax rates and Personal Allowances page for the current tax year.

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