HMRC’s Second Permanent Secretary, has written to the Welsh Finance Committee on Welsh taxpayers to alert the Welsh Government to an error that has occurred in the application of the new codes for a number of employers, including some UK government departments and agencies.

This has meant that some taxpayers living in Wales have received a Scottish ‘S’ code and, as a result, paid Scottish rates of income tax in April. HMRC is advising employers to check the tax codes for anyone who falls under the Welsh income tax regime.