Income Tax: Tax treatment from the Welsh Government’s Jobs Growth Wales Plus scheme
Published 15 March 2023
Applies to Wales
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This publication is available at https://www.gov.uk/government/publications/tax-treatment-of-payments-from-the-welsh-governments-jobs-growth-wales-plus-scheme/income-tax-tax-treatment-from-the-welsh-governments-jobs-growth-wales-plus-scheme
Who is likely to be affected
Individuals receiving payments by way of training allowances for participating in the Welsh Government’s Jobs Growth Wales Plus (JGW+) scheme.
General description of the measure
This measure exempts payments made by way of training allowances under the Welsh government’s JGW+ scheme from Income Tax, with retrospective effect to 1 April 2022.
Policy objective
The objective of this measure is to clarify the tax treatment payments made by way of training allowances under the JGW+ scheme.
Background to the measure
The JGW+ scheme was introduced by the Welsh Government on 1 April 2022, to replace Traineeships and Jobs Growth Wales.
The measure was announced on 11 October 2022 via Written Ministerial Statement.
Detailed proposal
Operative date
The measure will come into force on Royal Assent of Spring Finance Bill 2023 and will have retrospective effect from 1 April 2022.
Current law
Payments under the JGW+ scheme will be made under section 14 of the Education Act 2002.
Currently, payments made under the Engagement and Advancement strands are taxable as miscellaneous income under section 687 Income (Trading and Other Income) Act (ITTOIA) 2005.
Proposed revisions
Legislation will be introduced in Spring Finance Bill 2023 to amend Income (Trading and Other Income) Act (ITTOIA) 2005) to exempt payments made under the Engagement and Advancement strands of Jobs Growth Plus from income tax.
Summary of impacts
Exchequer impact (£m)
| 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 |
|---|---|---|---|---|---|
| — | negligible | negligible | negligible | negligible | negligible |
This measure is expected to have a negligible impact on the Exchequer.
Economic impact
This measure is not expected to have any significant economic impacts.
Impact on individuals, households and families
This measure will have a positive impact on approximately 4,900 individuals within the first year of the scheme (up to April 2023). This measure will ensure that individuals who are receiving payments by way of training allowances participating in the scheme do not pay Income Tax.
This measure is not expected to impact on family formation, stability or breakdown.
This measure is not expected to impact on individual’s experience of dealing with HMRC as they do not need to report anything to HMRC.
Equalities impacts
It is not expected that there will be adverse effects on any group sharing protected characteristics.
Impact on business including civil society organisations
There is no impact on businesses as this measure only affects individuals.
This measure is not expected to impact civil society organisations.
Operational impact (£m) (HMRC or other)
There is no operational or delivery cost impact for HMRC.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The scheme will be monitored through communication with the Welsh Government.
Further advice
If you have any questions about this change, please contact the Income Tax Structure Team by email incometaxstructuremailbox@hmrc.gov.uk