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People across Wales have been paying the wrong rate of income tax.

Some people in Wales have had a Scottish tax code applied to their income tax which is a higher rate.

The Welsh Rates of Income Tax (WRIT) was introduced in April 2019. Welsh taxpayers are assigned a C prefix in their tax code denoting where they live.

HMRC said employers incorrectly applied an S prefix, so some people have been paying Scottish rates. You can find the code on your payslip.

It is not yet known how many people are affected.

How tax rates compare in Wales and Scotland

Scottish tax bands

Starter rate - Over £12,500-£14,549 - 19%

Scottish basic rate - Over £14,549-£24,944 - 20%

Intermediate rate - Over £24,944-£43,430 - 21%

Higher rate - Over £43,430-£150,000 - 41%

Top rate - Above £150,000 - 46%

Welsh tax bands

Personal allowance - Up to £12,500 - 0%

Basic rate - £12,501 to £50,000 - 20%

Higher rate - £50,001 to £150,000 - 40%

Additional rate - over £150,000 - 45%

The Chair of the National Assembly’s Finance Committee, Llyr Gruffydd AM said: "HMRC’s admission is deeply disappointing as this Committee was repeatedly given assurances that mistakes like this would not happen.

"We raised concerns about the flagging process for identifying Welsh taxpayers during our inquiries into fiscal devolution and the Welsh Government’s draft budget.

"On each occasion we were told the matter was in hand and the lessons from the devolution of income tax powers to Scotland, where there were similar issues, had been soundly learned and would be put into effect.

"We are seeking an immediate explanation of how this has happened and will be asking representatives from HMRC to appear before this Committee in the near future.”

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How do you know if you have overpaid and how do you claim your cash back? The easiest way to check if you have overpaid is to take a look at your previous pay slips. Where you see "tax code" you should have a letter C in front of your tax code. If you have an S in front of that code you have been paying the Scottish rate of income tax which is higher. How can a chase up my money? As of yet HMRC has issued no specific guidance regarding this particular error. However the reimbursement could be automatic. HMRC’s P800 tax calculation system, may mean you do not need to claim a repayment and it could be issued automatically. If you have not received a P800 tax calculation from HMRC, and you have overpaid tax, you will need to make a claim for a tax repayment. If you do not want to wait for this or still believe it is wrong you can do it through your personal tax account on the HMRC website. Before calling you will need: Your personal details such as your full name, address, date of birth and National Insurance number

details of each of your employers or pension providers and their PAYE scheme reference number

Estimates of your earnings and pensions from each source for the current tax year

HMRC have said they are working with employers to correct the problem.

An HMRC spokesman said: "We have been made aware of an error in the application of new income tax codes for Welsh taxpayers by some employers which has meant some taxpayers payed the incorrect amount of tax in April.

"It is the responsibility of the employer to apply the tax codes provided by HMRC and we are working closely with the employers affected and providing support as they investigate and correct the problem."