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 Income Tax (WRIT): Wales sets its own income tax rates via the Senedd (Welsh Parliament). For 2025-26, Welsh Rates of Income Tax are identical to England: Basic Rate 20% (£12,571–£50,270), Higher Rate 40% (£50,271–£125,140), Additional Rate 45% (above £125,140). Take-home pay is the same as the equivalent English tax code. National Insurance is the same across all UK regions.
Take-home pay on tax code CD1 — Wales 2025-26 examples
Examples below show Welsh Income Tax and take-home pay at common salary levels. Results are identical to the equivalent English code for 2025-26.
| Gross Salary | Welsh IT | 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 − Welsh Income Tax − National Insurance. No pension, student loan or other deductions. NI: 8% between £12,570–£50,270 and 2% above.
Welsh income tax rates 2025-26
| Band | Rate | Income range |
|---|---|---|
| Basic Rate | 20% | £12,571 – £50,270 |
| Higher Rate | 40% | £50,271 – £125,140 |
| Additional Rate | 45% | £125,141 – no upper limit |
If you have tax code CD1, here's what you should know
- Your C-prefix tax code confirms you are coded as a Welsh resident for income tax purposes. HMRC uses your residential address to determine this.
- Your employer uses this code to deduct Welsh Income Tax — they follow HMRC's instructions and cannot change your code themselves.
- If you have recently moved to or from Wales, contact HMRC to ensure your code is updated. An incorrect residence determination means your tax revenue goes to the wrong devolved budget.
- You can view and update your tax code 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.
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 in Wales?
On tax code CD1 with a £30,000 salary in Wales, you take home £15,106 per year (£1,259 per month) after Income Tax of £13,500. Welsh Rates of Income Tax are identical to England for 2025-26, so take-home pay is the same as for the equivalent English code.
Is tax code CD1 correct for me?
Your Welsh tax code is set by HMRC based on your individual circumstances and Welsh residence. If you believe your 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 Income Tax.
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