Welsh rates of income tax
Part of the income tax a Welsh taxpayer pays goes to the Welsh Government, which sets that part. The bands for 2026/27 are in the table below.
SourceWales
Wales Payslip Generator
Wales sets its own rates of income tax, and Welsh taxpayers have a C at the front of their tax code. In 2026/27 the Welsh rates are the same as England’s.
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Example
Payslip
Wales
C1257L
PeriodMonth 7Tax year2026/27
- Salary
- £2,916.67
- Income Tax
- −£373.60
- National Insurance
- −£149.49
Net pay£2,393.58
Employer contributions, not deducted: £374.95
What is different in Wales
The C tax code
HMRC marks Welsh taxpayers with a C at the front of the tax code, such as C1257L. Payroll applies the code it is given.
SourceSame payslip law as England
Section 8 of the Employment Rights Act 1996 applies in Wales. A payslip in English meets it; a Welsh-language payslip is the employer’s choice.
SourceWhat a payslip must show in Wales
Every worker has the right to an itemised pay statement at or before each payday, on paper or electronically. In England, Scotland and Wales the content is set by section 8 of the Employment Rights Act 1996; in Northern Ireland by Article 40 of the Employment Rights (Northern Ireland) Order 1996.
Required by law
Gross pay
The gross amount of the wages or salary (s.8(2)(a); NI Art. 40(2)(a)).
Each deduction, its amount and its purpose
The amounts of any variable and fixed deductions and the purposes for which they are made (s.8(2)(b)). Fixed deductions may be shown as one total only if a standing statement of fixed deductions was given first (s.9).
Amount and method of each part-paymentWhen pay is split across payment methods
Where parts of the net amount are paid in different ways, the amount and method of payment of each part (s.8(2)(d)).
Hours worked for pay that varies by time workedWhen pay varies with time worked
Where pay varies by time worked, the total hours worked for that pay, as one figure or separately per type of work or rate (s.8(2)(e), in force 6 April 2019).
Expected by the government’s guidance
Tax code
Expected on every UK payslip
No statute requires these, but HMRC tells employees to find their tax code on their payslip, and lenders, letting agents and the Home Office read the rest.
Pay date
The statement must be given at or before payment (s.8(1)); the pay date shows which payment it itemises.
Tax period (week or month number)
Tax week 1 to 53 or tax month 1 to 12 (54 and 56 for the extra 2-weekly and 4-weekly payday), as reported to HMRC.
Employer name
Who is paying.
Employee name
Who is paid.
Year-to-date taxable pay, tax and NI
UK payslips carry to-date figures for the tax year from 6 April; they reconcile to the P60.
National Insurance number
NI category letter
Employer PAYE reference
Deductions on a UK payslip in 2026/27
These are the deductions a UK payroll takes from pay, with the 2026/27 rates the calculator and the example on this page use.
- Income Tax (PAYE)
- Worked out cumulatively from the tax code. The standard code 1257L gives a Personal Allowance of £12,570. Above it, England, Wales and Northern Ireland pay 20% on the next £37,700, 40% up to £125,140 and 45% above. The allowance falls by £1 for every £2 of income over £100,000. Source
- National Insurance
- Class 1 contributions, worked out on each pay period separately. Most employees (category letter A) pay 8% on earnings between £1,048 and £4,189 a month (£242 and £967 a week) and 2% above. Source
- Student and postgraduate loans
- Repayments are 9% of pay above the plan’s threshold: £26,900 a year for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4 and £25,000 for Plan 5. Postgraduate loans are 6% above £21,000. Source
- Workplace pension
- Under automatic enrolment the minimum is 8% of qualifying earnings, of which the employer pays at least 3%. Qualifying earnings are pay between £520 and £4,189 a month. With relief at source the payslip deducts 80% of the employee’s share; under a net pay arrangement the full share comes off before tax. Source
- Employer National Insurance
- The employer pays 15% on earnings above £417 a month (£96 a week). It is not deducted from pay; many payslips print it for information. Source
Income Tax bands in 2026/27
Bands apply to taxable income: pay above the Personal Allowance of £12,570. Scottish taxpayers have an S tax code and Welsh taxpayers a C code.
Wales
Source| Taxable income | Rate |
|---|---|
| £0 to £37,700 | 20% |
| £37,700 to £125,140 | 40% |
| Over £125,140 | 45% |
Example: a £35,000 salary paid monthly
Calculated by the Swift Paystubs UK engine for a pay date in 2026/27: tax code C1257L, National Insurance category A, no student loan or pension, the same pay in every earlier month of the tax year. Your own figures depend on your tax code and deductions.
Wales · C1257L
Month 7
| Gross pay | £2,916.67 |
|---|---|
| Income Tax | −£373.60 |
| National Insurance | −£149.49 |
| Net pay | £2,393.58 |
| Employer National Insurance | £374.95 |
Payslips in the other UK nations
Who asks for a payslip
Renting a home
Letting agents and landlords usually ask for recent payslips to check that the rent is affordable, often alongside bank statements that show the same pay arriving.
Mortgages and loans
Lenders ask for recent payslips and often your P60, the end of year certificate your employer gives you by 31 May, and check them against your bank statements.
SourceVisas
For a family visa, salaried income is shown with payslips covering the period, a letter from the employer and bank statements showing the salary paid in. The Home Office accepts formal payslips issued by the employer and showing the employer’s name.
SourceSelf-employed
Sole traders do not get payslips: income is shown by the Self Assessment tax calculation (SA302) and Tax Year Overview from HMRC. A director of their own limited company is an employee of it and is paid through PAYE with payslips like any other employee.
Wales questions
Do I pay more tax in Wales?
Not in 2026/27: the Welsh rates are the same as England’s. The C code still matters, because it decides where the tax goes and will decide the rate if Wales changes it.
Does a Welsh payslip have to be in Welsh?
No statutory requirement for a private employer to issue payslips in Welsh was found; the Welsh language standards apply to public bodies.
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Rates checked against GOV.UK and HMRC publications for 2026/27. Swift Paystubs creates documents from the details entered and does not give tax or legal advice. A payslip must reflect pay actually made and reported to HMRC. Checked 2026-10-06.