Welsh Tax Codes Explained: The C Prefix

If your tax code starts with the letter C, you are taxed under the Welsh rate of income tax. This guide explains what a C tax code means, who it applies to, and how to make sure yours is correct.

What does a C tax code mean?

A C at the start of your tax code, for example C1257L, means HMRC treats you as a Welsh taxpayer. The C stands for Cymru, the Welsh name for Wales. The rest of the code works exactly like a standard code, with the C simply flagging that the Welsh rate of income tax applies to you.

Who is a Welsh taxpayer?

As with Scotland, your status depends on where your main home is, not where you work. If your only or main residence is in Wales for most of the tax year, you are usually a Welsh taxpayer and should have a C code. Moving into or out of Wales can change your status, and your code should be updated to match.

How Welsh income tax works

Income tax is partly devolved to the Senedd, the Welsh Parliament, which can set the Welsh rate of income tax. In practice the Welsh rates have so far been kept in line with those for England and Northern Ireland, so most Welsh taxpayers currently pay the same income tax as their counterparts in England. The C code still matters, because it identifies you correctly and the Senedd could choose to set different rates in future.

Checking your C tax code is right

The most common issues are having a C code after moving out of Wales, or a standard code after moving in. While current Welsh rates match those in England, keeping your code accurate avoids problems and makes sure any future changes apply correctly. Our guides to the 1257L tax code and emergency tax codes explain how the rest of the code works.

If your tax code has been wrong for another reason, you may have overpaid and be due a refund.

Frequently asked questions

What does the C in my tax code mean?

It means you are treated as a Welsh taxpayer. The C stands for Cymru, and it tells HMRC to apply the Welsh rate of income tax.

Do Welsh taxpayers pay more tax?

Currently no. The Welsh rates have been kept in line with England and Northern Ireland, so most Welsh taxpayers pay the same.

I have moved out of Wales but still have a C code. What should I do?

Update your address with HMRC so your code is corrected.

Does a C code change how I claim a rebate?

No. You claim work expenses the same way. The C only identifies which rates apply.

Check your code and what you are owed

Keeping your tax code accurate helps make sure you never pay more than you should.

Check what you are owed with TaxPro, on a no win, no fee basis.