Click to access Jim_Harra_letter_to_Welsh_Finance_Committee.pdf
HMRC are indicating that some employers have not applied the issued C prefix to their payroll application.
RTI data is indicating that:
– either the C prefix is missing – the Welsh and rest of the UK tax rates (excepting Scotland) are the same this tax year
– S prefix is being reported instead of C – it may be that the employer is operating Welsh tax but the country indicator for the RTI FPS is wrong
– S prefix is present instead of C and Scottish tax is being applied in error
Employers need to ensure that the correct tax code is being operated and that the FPS submission is accurate.
Are you a Welsh resident tax payer? Has HMRC issued you with a C prefix tax code? Has your employer applied the C correctly?