Tax Code CD1 Explained
CD1 is the Welsh equivalent of the D1 tax code — all income from this source is taxed at a flat 45% additional rate, with no Personal Allowance. The C prefix identifies the taxpayer as a Welsh resident. Since Welsh Income Tax rates are identical to England rates for 2025-26, the take-home pay on CD1 matches D1. It applies when total income from all other sources already exceeds £125,140.
Who gets tax code CD1?
Welsh residents with substantial income across multiple sources — where additional income from a second job or pension falls into the additional rate band (above £125,140 in total). The C prefix ensures the income is recorded as Welsh Rate of Income Tax for HMRC's devolved accounting purposes.
Welsh Rate of Income Tax: Wales sets its own Welsh Rates of Income Tax (WRIT) via the Senedd. For 2025-26, Welsh rates are identical to England rates (20% / 40% / 45%), so take-home pay is the same. The C prefix tracks revenue separately for the Welsh Government.
Take-home pay on tax code CD1 — 2025-26 examples
Examples below show Income Tax and take-home pay at common salary levels. National Insurance (NI) is also shown separately — NI is not affected by your tax code and applies on the same basis for all employees.
| Gross Salary | Income Tax | NI (est.) | Take-Home | Effective IT Rate |
|---|---|---|---|---|
| £20,000 | £9,000 | £594 | £10,406 | 45.0% |
| £25,000 | £11,250 | £994 | £12,756 | 45.0% |
| £30,000 | £13,500 | £1,394 | £15,106 | 45.0% |
| £35,000 | £15,750 | £1,794 | £17,456 | 45.0% |
| £40,000 | £18,000 | £2,194 | £19,806 | 45.0% |
| £45,000 | £20,250 | £2,594 | £22,156 | 45.0% |
| £50,000 | £22,500 | £2,994 | £24,506 | 45.0% |
| £60,000 | £27,000 | £3,211 | £29,789 | 45.0% |
| £75,000 | £33,750 | £3,511 | £37,739 | 45.0% |
| £100,000 | £45,000 | £4,011 | £50,989 | 45.0% |
Take-home = Gross − Income Tax − National Insurance. No pension, student loan or other deductions included. NI calculated at 8% between £12,570–£50,270 and 2% above. Effective IT Rate shows Income Tax as a percentage of gross salary.
If you have tax code CD1, here's what you should know
- Your tax code appears on your payslip, P60, and any correspondence from HMRC about your PAYE tax.
- Your employer uses this code to calculate how much Income Tax to deduct from each pay period — they do not set it themselves.
- If your circumstances change (new job, change in benefits, marriage allowance), your code should update automatically — but it is worth checking.
- You can view and update your tax code online via your Personal Tax Account at gov.uk.
- If you think your code is wrong, contact HMRC on 0300 200 3300 or use the HMRC app.
- An incorrect tax code can mean you overpay or underpay tax — overpayments are refunded, underpayments are collected in future years.
Frequently asked questions
What does tax code CD1 mean?
CD1 is the Welsh equivalent of the D1 tax code — all income from this source is taxed at a flat 45% additional rate, with no Personal Allowance. The C prefix identifies the taxpayer as a Welsh resident. Since Welsh Income Tax rates are identical to England rates for 2025-26, the take-home pay on CD1 matches D1. It applies when total income from all other sources already exceeds £125,140.
Who gets tax code CD1?
Welsh residents with substantial income across multiple sources — where additional income from a second job or pension falls into the additional rate band (above £125,140 in total). The C prefix ensures the income is recorded as Welsh Rate of Income Tax for HMRC's devolved accounting purposes.
How much do I take home on tax code CD1 earning £30,000?
On tax code CD1 with a £30,000 salary, you take home £15,106 per year (£1,259 per month) after Income Tax of £13,500.
Is tax code CD1 correct for me?
Your tax code is set by HMRC based on your individual circumstances. If you believe your tax code is wrong, contact HMRC on 0300 200 3300 or check your Personal Tax Account at gov.uk. An incorrect code could mean you are paying too much or too little tax.
Want to see your exact take-home pay with your real salary, pension, and student loan?
Use the full salary calculator →