Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if HM Revenue and Customs will waive the tax on the Welsh Government's £500 payments to carers.
The UK Government values the contribution of care workers greatly, particularly during the current COVID-19 crisis.
HM Revenue and Customs are working with the Welsh Government to understand the nature of the payments. Under the longstanding rules of income tax, any payments made in connection with an employment are chargeable to income tax and National Insurance contributions.
This is consistent with the Government’s approach across different forms of financial support during COVID-19, including payments made under the Job Retention Scheme and the Self-Employment Income Support Scheme, which are liable to tax.