On 12 December 2018, Mark Drakeford became Wales new First Minister after the resignation of Carwyn Jones. As the previous Finance Secretary, Professor Drakeford was the one to watch for when it came to all things economy, specifically the Welsh Budget. He presented this in Draft in October 2018.
The Final Welsh Budget was published on 18 December 2018, at which time the Welsh Rates of Income Tax (WRIT) were confirmed. Point 3.2 confirms:
- Welsh Basic 10%
- Welsh Higher 10% and
- Welsh Additional 10%)
So, for Welsh Taxpayers, there is no difference in the Income Tax payable compared to rest of the UK (rUK) Taxpayers. At least for 2019/20.
It is also interesting to read Point 3.3 which talks about how the WRIT revenues will be impacted by the UK Government’s decision to raise the UK-wide Personal Allowance to £12,500 in 2019/20. However, although the net Income Tax intake will be less than forecast, this will make no different to Wales’ funding in the first year of WRIT operation.
Software developers have some certainty with anything coming from the Welsh Budget, as the minority Welsh Labour Government have a two-year Budget support agreement with Plaid Cymru. Although, nothing is set in stone until the all-important Welsh Rate Resolution, with expected ratification on 15 January 2019.