Welsh Revenue Authority: Annual Report and Accounts 2025 to 2026

Image

I’m pleased to introduce the Welsh Revenue Authority (WRA) Annual Report and Accounts for 2025 to 2026. A year I reflect on as beginning a new chapter for the organisation.

This year we have been busy building the foundations for our expansion into new services to the public – visitor accommodation registration (Registration) and a Visitor Levy (VL). Our new Chief Executive Officer (CEO) and Accounting Officer, Rebecca Godfrey, was also appointed to lead us into our next phase.

The WRA started operations in 2018 with a clear purpose; to collect tax for Wales in a way that reflects Welsh values. And 8 years on, we've collected more than £2.7 billion for Welsh public services. That's a remarkable achievement for a young organisation. It speaks to the trust that taxpayers, agents and partners place in us. But this year has been about more than what we collected. It's been about what we're building.

Our ‘Corporate Plan 2025 to 2028’ sets out a clear direction. This annual report is our first account of progress against it. The Board has been closely involved in overseeing that work, and I'm pleased with what it shows.

I also want to reflect on the WRA's place in Wales' public life. We're a small organisation, but our work matters. How we collect revenue – with fairness, consistency and respect – matters too. Our Approach is not just an operational framework. It's a statement of values. I believe every person in Wales should be able to expect that from a public body acting on their behalf.

I want to thank our people. The WRA's reputation rests on the quality and commitment of those who do this work every day. I'm proud to chair an organisation with such capable and values-driven people at its heart.

We go into the next year with new responsibilities, clear plans and real momentum. I look forward to reporting further progress next year.

Ruth Glazzard, Chair of the WRA

Back to top

Image

This year, we collected almost £400 million in tax revenue for Wales. Since we started in 2018, that total is now more than £2.7 billion. I'm proud of that. It matters because that money funds the NHS, schools and communities across the country.

This report shows what we collected, but also how we collected it and what we're building for the future.

A new chapter

This year marked the start of our ‘Corporate Plan 2025 to 2028’. It was also my first year as Chief Executive Officer. We set ourselves 3 connected strategic objectives: to be easy, fair and sustainable. This report is our first account of how we've done against them.

Easy: making it simple to do the right thing

'Our Approach' – a Welsh way of doing tax – sits at the heart of everything we do. We start from a position of high trust. Most people and organisations want to do the right thing, and we're here to help them do it. We’ve continued to build on this two-way partnership approach with our service users, and this has paid off.

This year, we've also started preparing for 2 new services: VL and Registration. Registration is on track to go live in October 2026, with VL following in April 2027. We've worked in the open as we've developed these services sharing what we've learned as we go.

Fair: being fair and consistent

We've kept our focus on doing our core tax work well, while expanding into new areas of tax risk. Our work with Natural Resources Wales (NRW) on Landfill Disposals Tax (LDT) continues, with a refreshed joint plan now in place.

Where people deliberately avoid their obligations, we take action. That's what makes our tax system fair for everyone in Wales. Support and action go hand in hand, and our results this year show that.

We've also supported the Welsh Government in developing tax and operational policy, helping to identify areas where the law could work better for everyone.

Sustainable: building for the future

This has been a year of real change. We've reshaped how we work around a service-based model, building the capabilities and structure we’ll need in future. We've also started to deliver our well-being objectives now that the WRA is formally under the Well-being of Future Generations Act, and we’re preparing to come under the Welsh Language Standards.

Across all of this, we’ve looked for better ways to do work and share what we’ve found, whether that’s been in developing new services, supporting policy work or improving how we operate.

Looking ahead

New responsibilities bring opportunities as well as challenges. We'll draw on our experience, stay true to Our Approach and carry on doing what we do well for Wales.

I'm proud of how far we've come. And I'm confident we have the people, the plans and the commitment to do even more.

Rebecca Godfrey, Chief Executive Officer (from May 2025)

Back to top

This section outlines what our organisation is, what we do and how we’ve performed against our strategic objectives and annual business plan this year.

About us

We're Wales' tax authority, working on behalf of the Welsh Government to collect devolved taxes, deliver services and raise revenue that's reinvested in Welsh public services. We help people and organisations to register, pay and calculate tax. Since 2018, we've collected over £2.7 billion in Land Transaction Tax (LTT) and Landfill Disposals Tax (LDT). Our remit is growing – we're implementing VL and Registration, building on our expertise as a trusted tax authority.

As a non-ministerial department of the Welsh Government, we make sure the way we administer Welsh taxes is fair, transparent and impartial. There's a clear separation between Welsh Ministers and our organisation when it comes to taxpayer data, information and the operational decisions we make.

We're a small organisation where people from across the Civil Service professions work side by side to deliver excellent, joined-up services for Wales. Year-on-year, we're one of the highest-ranking organisations across the UK in the Civil Service People Survey for employee engagement. We’re committed to offering an inclusive workplace culture that’s innovative, collaborative and kind. Delivering excellent bilingual services in both Welsh and English is central to who we are as Wales' tax authority.

Our Approach

We’re committed to delivering a fair tax system for Wales through what we call Our Approach – a uniquely Welsh way of doing tax. This is built on trust. We focus on working closely with taxpayers and their representatives (or agents), partner organisations and the public to make sure we collect taxes fairly and efficiently.

Our Approach is based on our charter, which sets out the principles underpinning our work. And it’s inspired by 3 Welsh words:

• cydweithio: means ‘to work together’ and carries a sense of working towards a common goal
• cadarnhau: suggests a solid, robust quality you can rely on. It’s about providing certainty, being accurate and reinforcing trust
• cywiro: means ‘returning to the truth’ and is about how we work with people to resolve errors or concerns

Tax risk mitigation

We begin from a position of trust to help taxpayers and their agents pay the right amount first time. This approach makes sure we collect taxes fairly and efficiently.

We know sometimes people get things wrong. So we try to identify circumstances when it’s more likely taxpayers will pay the wrong amount of tax. We call these ‘tax risks’. Then we take action to make sure people pay the right amount of tax in such situations.

We sometimes need to step in to make sure tax that would otherwise go unpaid is collected – we call this ‘tax recovery’. We also make sure we don’t repay tax when invalid claims are made – we call this ‘tax protection’. We summarise both later in this report, with fuller detail in our data annex.

Organisational structure

Our organisation has evolved to support our approach to operating around services. This visual sets out our model during the year.

Image

Chief Executive

• Rebecca Godfrey (from May 2025), Chief Executive
• Dyfed Alsop (until April 2025), Chief Executive

Non Directors (reporting to Chief Executive)

• Jo Ryder, Chief of Staff
• Joseph Dooher, Head of VLNR Delivery
• Amy Bowden, Head of Legal Services

Directors (reporting to Chief Executive)

• David Matthews, Strategy and Capability Director
• Vacant, Services Director/Chief Operating Officer (COO)

Roles reporting to David Matthews (Strategy and Capability Director)

Chief People and Communications Officer

Responsibilities include:

• Human resources (HR)
• Communications
• Engagement

Head of Policy and Strategy

Responsibilities include:

• Policy
• Strategy

Chief Finance Officer

Responsibilities include:

• Corporate finance
• Budgeting
• Procurement

Roles reporting to the Services Director/COO

Chief Digital Officer

Responsibilities include:

• Digital
• IT security

Head of Data Analysis

Responsibilities include:

• Data
• Senior Information Risk Owner

Head of Operations

Responsibilities include:

• LDT
• LTT
• Customer contact

Our purpose and strategic objectives

We’ve set out our purpose and strategic objectives in our Corporate Plan 2025 to 2028. They have been agreed by Welsh Ministers. Our strategic objectives are also our well-being objectives under the Well-being of Future Generations Act, as set out in the well-being statement annexed to our Corporate Plan. This is the first year we’ve reported on how we’re doing against this plan.

The ‘Corporate Plan for 2025 to 2028’ explains our purpose is to design and deliver revenue services and lead on better use of Welsh taxpayer data.

Our strategic objectives are to work in a way that’s:

• easy: we’ll make it easy to do the right thing
• fair:  we’ll be fair and consistent in the way we deliver our services
• sustainable: we’ll be a sustainable and future-focused organisation

Our appraisal report explains what we’ve done to meet our strategic objectives. And you can find more details of 3 areas of these objectives in the performance analysis section. 

Outcome delivery plan for 2025 to 2026

We made steady progress against our business plan for 2025 to 2026 and focused on 5 priorities. We strengthened how we work as an organisation, improved our systems and services, and got ready to meet our new VL and Registration responsibilities. Some of this work will continue into the next planning period, but we’ve already built strong foundations for the future.

1. Strategic direction and governance

We’ve created new governance structures to improve our decision-making and long-term planning. Our new governance groups now meet regularly and provide clear oversight of our work. We also began moving to a service-based operating model and agreed the aims and arrangements we need to support it. This change will take more time, but we’ve decided on the structure and a clear vision for our services.

2. Organisational design and development

We’ve continued to develop a fair, inclusive and supportive workplace. All our equality objectives have owners who are responsible for their delivery, and we regularly monitor our progress against these objectives. We’ve worked with people across our organisation to determine what team structures, skills and capabilities we need to make the new service-based structure effective. We’ve also worked with the Welsh Language Commissioner to prepare for the introduction of Welsh language standards, which will come into effect in December 2026. 

3. VL and Registration

We’ve worked closely with local authorities and other partners to prepare for VL and Registration. Our service level agreement with local authorities for the levy is ready, and we’re making progress on the registration and levy service. We’re on track to launch visitor accommodation registration in October 2026, with VL following in April 2027.

4. Digital, data and operational systems

We keep improving our digital and data systems so our services are even easier to use and more reliable. We’ve got a new process for ongoing upgrades to digital services, and work is underway to create a dedicated test environment for data-driven systems. We’ve started to formalise our approach to artificial intelligence (AI) to ensure we grow AI use in a responsible and sustainable way.

5. Managing Tax Risk and operational policy

We’ve strengthened our approach to tax compliance by having a clear plan for how we manage LTT risks. This supports our goal of recovering undeclared revenue in line with the assumptions and forecasts set out in a funding case for additional investment, which the Welsh Government agreed. We also led a public consultation on possible changes to Welsh tax legislation and worked with NRW to update our joint approach to tackling waste crime.

Appraisal report

How we report on our performance is based on measures developed around our strategic objectives to be easy, fair and sustainable. These measures are both tax-focused and people-focused.

Some of our measures linked with our current corporate plan are new. For some, performance levels are on or near our target. For others, such as those related to timeliness of making higher rate refunds and automation, we’ll look to improve these as we expand our services. 

We summarise the data here and look at aspects more fully in the performance analysis section. You can also find the detailed data behind all our performance measures in our data annex.

How people find dealing with us  

• Objective: Easy.
• 2025 to 2028 target: 90% of survey respondents say our services are easy to use.
• 2025 to 2026 performance: 88% of people found it easy to use our services, slightly down on the previous year and just below our target.

Taking action to put things right

• Objective: Fair.
• 2025 to 2028 target: increase the proportion of investigations that manage to recover or protect tax.
• 2025 to 2026 performance: 70% of investigations led to some form of tax recovery, with an increase over the latter part of the year. Tax was protected in 91% of investigations where it was suspected to be wrongly reclaimed.

Approach to tax risk

• Objective: Fair.
• 2025 to 2028 target: carry out tax recovery proportionate to risk levels.
• 2025 to 2026 performance: total tax recovery for LTT was £4.6 million, a significant increase from the previous year, and in line with our efforts to identify more types and cases of LTT tax risk. A further £0.5 million in tax was protected against invalid LTT repayment claims.

Timeliness of tax investigations

• Objective: Fair.
• 2025 to 2028 target: minimise the time it takes to finish a tax investigation.
• 2025 to 2026 performance: the average time it took to finalise a tax investigation was 53 days. The average time has gone down during the year.

Timeliness of processing cases

• Objective: Easy.
• 2025 to 2028 target: reduce the average length of time taken to process cases.
• 2025 to 2026 performance: on average it took 26 days to close a case, or 10 days if you don’t count cases that took more than 6 months. Our average time to close a case stayed broadly consistent throughout the year.

Timeliness of higher rate refunds  

• Objective: Easy.
• 2025 to 2028 target: average time of no more than 10 days to process a higher rate refund case.
• 2025 to 2026 performance: nearly 34% of higher rate refunds were made within the 10-day target, and on average it took 16 days to process a refund.

Debt Recovery  

• Objective: Fair.
• 2025 to 2028 target: 99% of tax liability and 95% of penalty liability raised in the same period last year is collected.
• 2025 to 2026 performance: 99% of tax liability raised in the same period last year was collected, meeting our target. 91% of penalty tax liability raised in the same period last year was collected, a little short of our target.

Payments made correctly first time  

• Objective: Easy.
• 2025 to 2028 target: 97% of payments made correctly first time.
• 2025 to 2026 performance: 96% of payments were made correctly first time, up on the previous year and just below our target.

Extent of automation  

• Objective: Sustainable.
• 2025 to 2028 target: 98% of cases will require no manual intervention between receipt of payment and case closure.
• 2025 to 2026 performance: 94% of transactions required no intervention, which is marginally below last year and a little short of our target.

Our principal corporate risks

During the year we identified and managed 6 main corporate risks. These relate to:

• information management 
• cyber security
• funding our current and future functions
• Our Approach
• being prepared for expansion
• VL and Registration delivery

You’ll find details of our activities and ways we’re dealing with these risks under individual headings in the rest of this report.

Change in risks

We added 2 new risks to our corporate risk register this year. These are linked to our expanding remit to cover VL and Registration and to getting ready for the WRA to expand as we increase our functions, services, infrastructure and people. 

We outline how we manage organisational risks in our governance statement section.

Performance analysis

During 2025 to 2026, we collected almost £400 million in tax overall. We recorded nearly 60,000 LTT transactions over the same period – an increase on the previous year. This reflects continued recovery in the housing market.

For LDT, we recorded around 900,000 tonnes of waste disposed of at authorised landfill sites in Wales. And we issued charging notices totalling nearly £500,000 in respect of unauthorised disposals, of which many cases moved to debt enforcement activity during the year.

This section covers 3 strategic objectives from our corporate plan, with 3 focus areas under each of them, and an overview of our main activities. Progress against our wider strategic objectives is set out in the appraisal report.

Easy: We’ll make it easy to do the right thing by offering services that help people do what they need to do

Our Approach focuses on helping people do the right thing first time. This has proved successful, and we're now expanding it to new areas of work.

We began preparing for 2 important new services: VL and Registration. The digital system for the visitor accommodation register is due to go live in autumn 2026. Our aim is to build a service that's easy to use, so people can register first time.

We worked with partners and future users throughout the digital design process. We redesigned a core part of the service based on user research to make it easier for people to provide us with the right information. We shared updates through blogs and webinars, ran listening exercises and usability testing with our user-centred design (UCD) team, and used that feedback to shape the service.

The Digital Public Services Wales service assessment report stated: “The team are working effectively against the Digital Service Standard for Wales. There is a strong focus on user needs and the future well-being of people in Wales, joining up the service to wider journeys, working effectively, and building a sustainable user focused technical solution.” 

We worked with the Welsh Local Government Association (WLGA) and local authorities to share the latest information on VL. During Cardiff Council’s consultation phase, we gave the council technical advice and guidance on the WRA’s approach to administration and collection. We’ll continue to work with the council, which has decided to implement VL from 1 April 2027, and help local accommodation providers prepare for its introduction.

Councillor Jennifer Burke, Cabinet Member for Culture, Leisure and Tourism at Cardiff Council, said: "We're grateful for the Welsh Revenue Authority's support on the Visitor Levy. Their technical expertise and practical guidance have been invaluable during our consultation, helping us work through the complexities of implementation. As a result, we're well placed as we continue working towards the levy's introduction, ensuring our local accommodation providers are prepared for the changes ahead."

We continued to engage with agents on LTT, focusing on complex areas of the tax to help them understand their obligations. We hosted 2 face-to-face tax forums in Newport and Wrexham. Almost 100 people came to these events in total. We received positive feedback, particularly about the forum in March 2026, which covered tax administration, multiple dwellings relief and Leasing Scheme Wales.

We also hosted 2 webinars on important topics, including higher rates, transfer of equity and common errors in making returns. More than 300 agents attended these sessions. We plan to build on this positive engagement with more activities in 2026 to 2027.

We moved to a service-led approach during the year and organised our work around the 3 core services people use: registration, payments and tax calculation. This shift puts user needs at the centre of how we design and carry out our work so it’s simpler and faster for people to do what they need to do. We’re learning how to implement a service model that works for us and we expect to adapt and improve the model as we learn. We’ll report further on this in 2026 to 2027.

Fair: We’ll be fair and consistent in the way we deliver our services by taking action to put things right

As part of our approach to fairness and consistency, we’ve strengthened our work on tax risk for LTT and expanded into new risk areas. We received an extra £660,000 of investment in 2025, which helped us recover an additional £2.6 million in tax during 2025 to 2026. 

We expanded our team, increased our expertise and made our processes more efficient so we could tackle more complex risks. We took a collaborative approach and added data and UCD specialists to our tax risk team. This helped us consider challenges from different perspectives.

We discovered that some enquiries were opened when the perceived tax risk was higher than the actual risk. This could result in additional work both for us and for taxpayers but only limited recovered revenue.

Our response has been more early engagement with taxpayers, so we can ask more informed questions, better target our enquiries and ensure we focus on cases where there’s real risk. This has made our work more effective for taxpayers and helps us recover additional revenue that might be lost because of mistakes.

Molly Byrne, Senior User Researcher for the WRA, said: “Embedding user research within the tax risk team changed how we approached our work. By developing a deeper understanding of taxpayers’ needs and behaviours, we were able to ask more meaningful questions earlier in the process. This research-led approach highlighted where enquiries were not always necessary, allowing us to challenge assumptions and reduce unnecessary interventions. Shifting to earlier, insight-driven engagement has made our work fairer for taxpayers and more effective for the WRA.”

In line with Our Approach, we’ve offered agents working on LTT regular opportunities to share guidance, discuss emerging issues and improve practice. We’ve also strengthened our relationships with the Law Society Wales and local law societies and explored new partnerships, such as with Legal News Wales, to reach our target audience in different ways.

We’ve worked closely with NRW to minimise tax risk in LDT and tackle waste crime and unauthorised disposals. We’ve coordinated our tax and regulatory activity to have the most impact. Shared governance arrangements support this partnership. We’ve developed a joint operational LDT strategy for the next 3 years of our partnership that sets out our common approach and ways of working. We also secured an additional investment for 2026 to 2027 to do more to tackle unauthorised disposals. 

Lyndsey Rawlinson, Executive Director, Place Operations at NRW, said: “Our partnership with the Welsh Revenue Authority continues to play a vital role in tackling waste crime and improving Landfill Disposals Tax compliance in Wales. Through coordinated tax and regulatory action, strengthened governance and a new three-year joint strategy, we are continuing to increase our collective impact. We look forward to continuing to work together in making a positive difference to the way waste is managed in Wales.”

We also led on the development of technical operational policy relating to our fully devolved taxes, identifying and consulting on areas where legislation could be strengthened. We worked closely with Welsh Treasury colleagues to consult on proposals to amend the Welsh Tax Acts. These proposed changes cover areas where we’ve had difficulty in applying the legislation effectively. Some amendments are in response to feedback from taxpayers, and others draw on our considerable experience of operating and administering devolved taxes in Wales. This work ensures the WRA remains grounded in fairness and consistency for everyone we serve.

Anna Adams, Deputy Director, Welsh Treasury, part of the Welsh Government, said: “Our partnership with the WRA helps to ensure that we deliver effective tax policy for Ministers. This approach recognises the value of developing tax policy aligned with how we collect and manage devolved taxes in Wales. When we developed the Visitor Levy, we iterated on the policy alongside delivery, creating a better tax. Working with the WRA on areas where the existing legislation underpinning the devolved taxes could be strengthened ensures considerations around policy and delivery of taxes in Wales continue to be built into planning and development from the outset.”

Sustainability: We’ll be a sustainable and future-focused organisation by building capability to become more resilient

We continued to build organisational resilience by moving towards a services structure. We did this through an organisation design and development programme that meant we managed growth in a considered and sustainable way. This included launching a new corporate plan for 2025 to 2028, rolling out updated governance arrangements and developing a new organisational structure that will be put in place in 2026 to 2027.

We believe resilience is built through the right combination of structure, systems and people. Over the last 12 months, our workforce  increased by 20 (20%), with growth prioritised in digital skills and capability. For the first time, we started to build a new end-to-end service in-house. To do this, we invested in new permanent digital roles and supported three digital apprentices, two of whom have now earned promotions. Alongside this, we brought in expert contractors whenever their skills were needed, making sure we provided value for money and managed our resources efficiently.

Our Civil Service People Survey results remained strong. For the eighth consecutive year, we ranked among the highest scoring Civil Service organisations in the UK on the employee engagement index. Alongside our continued recognition for equality, we secured a new accreditation this year – the Includability Award – reflecting our commitment to building an inclusive workplace.

Carl Alexis, Chief People and Communications Officer, said: “We have created a workplace where everyone feels valued, heard and empowered to develop. That’s how it feels to work here day to day and it shows. Through the people survey, 87% of our staff say this is a great place to work. We’re proud of our inclusive workplace.”

We also continued to embed our wider responsibilities in everything we do. Our work has been shaped by our commitments under the Well-being of Future Generations (Wales) Act 2015, Welsh language duties, and the Social Partnership and Public Procurement (Wales) Act 2023. These obligations have actively informed our culture and the way we operate as a public body.

Back to top

Our organisation is managed by the following governance groups.

Our Board

• Ruth Glazzard, Non-executive Chair
• Jocelyn Davies, Non-executive Deputy Chair
• Rheon Tomos, Non-executive Member
• Mary Champion, Non-executive Member
• Jim Scopes, Non-executive Member
• Dyfed Alsop, Chief Executive Officer (until April 2025)
• Rebecca Godfrey, Services Director/Chief Operating Officer (until April 2025) and Interim/Chief Executive Officer (from May 2025)
• Dave Matthews, Strategy and Capability Director 
• Indee Dehal, Staff-elected Member (from July 2025)

Tîm Arwain (Executive Committee)

• Dyfed Alsop, Chief Executive Officer (until April 2025)
• Rebecca Godfrey, Services Director/Chief Operating Officer (until April 2025) and Interim/Chief Executive Officer (from May 2025)
• Dave Matthews, Strategy and Capability Director 
• Alex Mason, Chief Financial Officer
• Carl Alexis, Chief People and Communications Officer
• Joseph Dooher, VL/NR Programme Director (member from May 2025)
• Nina Engelhardt, Head of Operations (member from May 2025)

Back to top

This shows how we’ve performed against the outcomes agreed in our budget, our strategic objectives and our goals.

Resource accounts

We receive an annual funding allocation from the Welsh Government to cover our expenditure. We set an expenditure budget each year based on our planned activities to meet the aims of our corporate plan. The budget is split into the following broad areas: 

• staff costs, including learning and development 
• operational costs of collecting the taxes, enforcement action and data intelligence 
• corporate running costs, such as HR, information and communication technology (ICT), facilities, governance and legal advice 
• business change to ensure we keep improving both our digital systems and operations so we can support new processes and tax legislation change
• VL and Registration delivery costs are shown separately in 2025 to 2026. These costs are within staff costs in 2024 to 2025.

The table below sets out the funding we received from the Welsh Government and drew down during the year.

During the year, we raised revenue from taxes we manage on behalf of the Welsh Government, as set out in the table below.

WRA annual accounts 2025 to 2026

We processed nearly 60,000 LTT returns (2024 to 2025: 56,000).

Of these returns:

• 53% resulted in a tax liability requiring payment (2024 to 2025: 52%)
• this generated a net revenue income of £362.97 million in LTT for the Welsh Consolidated Fund (2024 to 2025: £340.61 million)

The remaining cash balance will be held on account and remitted in the next financial year.

Sustainability report

We’re a non-ministerial department of the Welsh Government and follow its overarching sustainability policy. Its policy on sustainability can be found in the Welsh Government Consolidated Accounts 2024 to 2025 (pages 84-86).

Accountability report

We set out in this section how we meet the key requirements of Senedd Cymru (Welsh Parliament). 

Statement of the Accounting Officer’s responsibilities

As Accounting Officer of the WRA, Chief Executive Officer Rebecca Godfrey is personally responsible for:

• the proper stewardship of public funds 
• day-to-day operations and management of the WRA 
• ensuring compliance with the requirements of managing Welsh public money

Under Sections 29(1)(b) and 30(1) of the Tax Collection and Management (Wales) Act (TCMA) 2016, Welsh Ministers have directed the WRA to prepare our resource accounts and tax statement for each financial year. These should be in the form and on the basis set out in the ‘accounts direction’ provided by the Welsh Government. 

The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the WRA and its net resource out-turn, application of resources, changes in taxpayers’ equity and cash flows for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the ‘Government Financial Reporting Manual (FReM)’, and in particular should:

• observe the accounts direction issued by Welsh Ministers, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis
• make judgements and estimates on a reasonable basis 
• state whether applicable accounting standards, as set out in the FReM, have been followed, and disclose and explain any material departures from these in the accounts 
• prepare the accounts on a going concern basis 
• confirm that the Annual Report and Accounts, as a whole, are fair, balanced and understandable, and take personal responsibility for the Annual Report and Accounts and the judgements required for determining that they are fair, balanced and understandable 

The Accounting Officer must also ensure that the tax statement is prepared in accordance with Section 25 of the TCMA so that it: 

• shows the amounts receivable from the collection of taxes, penalties and other income, any deductions permitted and the amounts paid to the Welsh Consolidated Fund
• provides disclosure of any material expenditure or income that has not been applied to the purposes intended by the Welsh Government or material transactions that have not conformed to the standards of the authorities that govern them

An Accounting Officer’s duties include responsibility for the propriety and regularity of the public finances for which they are answerable, keeping proper records and safeguarding WRA assets. These duties are set out in the ‘Accounting Officer Memorandum’, framework documents and ‘Managing Welsh Public Money’.

As the Accounting Officer for the WRA, I confirm that: 

• the Annual Accounts for the period 1 April 2025 to 31 March 2026 are fair, balanced and understandable 
• I take personal responsibility for the Annual Accounts and the judgements required for determining that they are fair, balanced and reasonable 
• in producing these accounts, I have undertaken widespread consultation, seeking feedback, comment and assurance from the WRA Management Board, Audit and Risk Assurance Committee (ARAC), internal auditors and members of the wider staff team 
• I have taken all reasonable steps to make myself aware of any relevant audit information and to establish that our auditors are aware of that information

Rebecca Godfrey, Chief Executive Officer and Accounting Officer 

14 July 2026

Back to top

The TCMA 2016 designates me as the Accounting Officer, and details of my responsibilities are in the agreement between the Welsh Government and the WRA.

Our governance framework

This is a visual of our governance framework. The remit and responsibilities are set out below. 

Image

Welsh Ministers

Set our objectives and priorities.

Accounting Officer (AO)

Takes objectives and priorities from Welsh Ministers and provides assurance on:

• standards of governance
• financial management
• corporate risks

The AO is supported by the Board.

Our Board

Provides leadership, support and challenge.

Audit and Risk Assurance Committee (ARAC)

Provides assurance and scrutiny on risk management, control, financial management and governance.

Reports to the Board.

Remuneration Committee

Provides support and challenge on senior appointments and succession. 

Reports to the Board. 

Tîm Arwain (Executive Committee)

Sets strategic direction in line with the corporate plan and oversees transformation.

Reports to the Accounting Officer.

Service Delivery Leadership Group (SDLG)

Responsible for the operational performance and management of the WRA’s services to the public. 

Reports to Tîm Arwain.

Corporate Delivery Leadership Group (CDLG)

Responsible for supporting the delivery of corporate objectives, including risk management. 

Reports to Tîm Arwain.

Case Management Committee

Provides assurance and support on:

• operational decision-making
• policy development

Reports to Tîm Arwain.

Visitor Levy and National Registration (VLNR) Programme Board

A temporary board to govern the implementation of VL and Registration.

Reports to Tîm Arwain.

Our Board

Our Board consists of a majority of non-executive to executive members, and includes the Chief Executive Officer, Chief Operating Officer/Services Director, Strategy and Capability Director and a staff-elected member.

Board members (including the Chief Executive Officer) are collectively accountable for the WRA, and they provide leadership to ensure an effective standard of governance:

• the functions for the devolved taxes we manage are delegated to the Chief Executive, who in turn delegates through an executive committee structure, taking decisions in line with the current corporate plan
• the Board provides challenge and advice on our strategy, capability and performance, and is, alongside the Accounting Officer, supported by ARAC and the Remuneration Committee

From April to September 2025, we also had a Board Associate invited to all meetings and Board activities. This role was held by an aspiring Board member and designed to offer full exposure to a board environment, allowing full contribution and ensuring a sense of belonging. To note, Board Associates are not formal Board members in statute and have no associated voting rights. We hope to open a similar opportunity again in the future. 

Audit and Risk Assurance Committee (ARAC)

Provides assurance and scrutiny on:

• risk management
• control
• financial management and governance

Reports to the Board.

Number of meetings in 2025 to 2026

5 meetings

Chair

Mary Champion

Members

3 non-executive members including the Chair. The Chair of our Board also has an open invitation to attend meetings.

Ymgynghorwyr (advisers) to ARAC: 

• Chief Executive Officer
• Chief Operating Officer/Services Director
• Chief Finance Officer
• Head of Finance
• Internal Audit Service (IAS) representative (Welsh Government)
• Chief of Staff
• Audit and Risk Secretariat

Representatives from the Welsh Government and Audit Wales regularly attend meetings.

ARAC meets quarterly, approximately 1 week before each Board meeting. During 2025 to 2026 ARAC scrutinised and gave assurances on matters including: 

• strategic processes for managing risk
• the risk appetite framework
• the effective application of internal controls
• cyber security arrangements
• several WRA policies

The effectiveness of ARAC is also monitored and reported on every 2 years.

Remuneration Committee

This committee provides assurance and scrutiny on the effectiveness of succession planning, recruitment and remuneration.

Number of meetings in 2025 to 2026

2 meetings

Chair

Ruth Glazzard 

Members

3 non-executive members (including the Chair) and the:

• Chief Executive Officer
• Chief People and Communications Officer
• Head of Human Resources

Board meetings are held quarterly. The Board also meets for strategic planning days twice a year. Between those meetings and planning sessions, the Board meets to discuss updates monthly.

Strategic risk – roles

We manage strategic risk through the following roles: 

• The Accounting Officer covers risk management and reporting
• The Board provides oversight of strategic risks and agrees the organisation's risk appetite
• ARAC provides assurance and advice on risk management processes

Reviewing corporate risks

Risk management is an essential part of our governance, leadership and decision-making. It is fundamental to how the WRA is directed, managed and controlled at all levels. Risk management should be collaborative and informed by the best available information and expertise. We promote collaboration through the CDLG, Tîm Arwain and ARAC. 

Risk management processes are structured to include: 

• risk identification and assessment to determine risks and prioritise how they should be managed
• the selection, design and implementation of ways to treat risk that help us achieve the intended outcomes and keep risks at an acceptable level
• the design and operation of integrated, insightful and informative risk monitoring
• timely, accurate and useful risk reporting to improve our decision-making and help management and oversight bodies meet their responsibilities
• continual improvement of risk management based on learning and experience

Process

Team risk registers are managed by team leads and reviewed by the risk and audit manager on a quarterly basis. The CDLG considers this review quarterly and shares the main information and any themes or concerns with Tîm Arwain. CDLG can also offer advice and mitigation suggestions to risk owners and team leaders. Tîm Arwain reviews the corporate risk register every 2 months.

Internal control

Senior managers provide the Accounting Officer with their annual self-assessments of internal control, governance and risk management arrangements. We use an internal control questionnaire (ICQ) to audit this every year.

We remain assured in our governance around our delegated powers. The outstanding issues from 2024 to 2025 have also been successfully addressed this year. Some improvements have been identified in the 2025 to 2026 ICQ and are being addressed.

Internal audit

Welsh Government’s Internal Audit Service (IAS) issued 4 reports on our work during the year. The overall annual internal audit opinion was reasonable.

We received reasonable assurance for 3 of these reports – business planning, cyber security and our internal governance structure. 

We received substantial assurance on our preparedness for new procurement legislation and processes. 

This extract from the IAS is about our business planning report: “[There is] Reasonable Assurance that governance, risk management and control processes are suitably designed and applied effectively. Some matters require attention with moderate risk exposure until resolved.”

This one is on our procurement report: “[There is] Substantial Assurance that governance, risk management and control processes are suitably designed and applied effectively. Either no, or very minor, matters exist with low-risk exposure which may not need to be resolved.”

An IAS representative attended all ARAC meetings in 2025 to 2026. We also had our first advisory report on impact assessments this year. It helped us review our current arrangements to assess their effectiveness and explored opportunities to strengthen our approach. We’re committed to ensuring impacts are properly considered as part of business processes and policy development. 

The advisory report suggested some helpful next steps and gave us guidance on how best to implement proposed actions to strengthen our approach to impact assessment processes. 

External audit

We’re audited by Audit Wales, which is responsible for the review and audit of financial controls and the reliability of our financial accounts. Audit Wales issues an audit report and presents its findings to ARAC and the Board. Its report for the year can be found in the Resource accounts and Tax statement sections.

Information management and governance

We’ve continued to actively promote a culture of best practice in data and information management to maintain our high standards of information governance. This was especially important in 2025 to 2026 as the organisation grew significantly. We have a supportive culture that encourages our people to report information security incidents. We aim to learn from these and, where possible, stop them happening again. 

The top 3 information governance risks we actively managed were:  

• cyber resilience 
• phishing emails  
• supplier cyber risk  

Our proactive culture of strong information management produced results. There were no complaints to our Data Protection Officer or the Information Commissioner's Office (ICO), and we did not have to refer any data breaches to the ICO.

Cyber resilience

Cyber security is one of our main priorities. We aim to continually strengthen our ability to withstand evolving threats, respond effectively and recover quickly.

We follow relevant National Cyber Security Centre (NCSC) guidance, particularly the Cyber Assessment Framework, and meet the Welsh Government security expectations, using assurance and continuous improvement to strengthen our controls.

Overall, we reinforced our cyber security position across our governance, technology, people, suppliers and incident readiness. To achieve this, we:

• refreshed existing policies and introduced new ones in line with Information Assurance for Small and Medium Enterprises (IASME) and NCSC guidance
• improved how we monitor systems and prepared for 24/7 coverage via a third-party service
• strengthened our backup and disaster recovery arrangements, improving documentation and assurance for critical systems
• completed independent assurance activities and third-party assessments
• reinforced supplier controls
• built further on staff awareness and carried out internal incident response exercises 
• monitored emerging threats linked with the rise of AI and supply chains

We did not experience any significant cyber incidents, but the national threat landscape continues to evolve. 

Freedom of information

We received 25 freedom of information (FOI) requests. We responded to each one within the time limits set by the Freedom of Information Act 2000. We did not receive any complaints about our handling of FOI requests, and the ICO did not need to investigate how we managed them.

Whistleblowing

Our whistleblowing policy and guidance give staff clear advice on how to raise any concerns. We have a nominated officer who deals with issues people want to talk about. There’s information on our website about ways to contact us. This also explains how we’ll respond to any disclosures made by external whistleblowers. We did not receive any disclosures during the year. 

Welsh language standards

The WRA was named in the amended Welsh Language Standards Regulations in 2025. Since then we’ve proactively engaged with the Welsh Language Commissioner to provide input into the standards that will apply to us. This includes involving teams from across our organisation to ensure what we need to do to comply with the regulation reflects how we’re evolving. Welsh language standards will formally apply to the WRA from December 2026.

Well-being of future generations

This was our first year operating under well-being objectives, after the WRA was brought within the scope of the Well-being of Future Generations (Wales) Act 2015. Our well-being objectives are intentionally the same as the objectives in our ‘Corporate Plan for 2025 to 2028’, so our overall progress towards them is reflected in the performance measures we have established for our corporate plan.

Since launching our corporate plan, we’ve supported Audit Wales in auditing how we set our well-being objectives. This has been a positive experience, reflecting the robust approach we’ve taken and highlighting ways we can further demonstrate how our work and planning support the act and its aims. The Audit Wales report is due to be published early in 2026 to 2027.

In conclusion

As the Accounting Officer for the WRA, I confirm that the statements made in this report are correct for the period 1 April 2025 to 31 March 2026. There have been no significant internal control or governance issues. I can also confirm that sound systems of internal control are in place to help meet the organisation’s policy aims and objectives.

Rebecca Godfrey, Chief Executive Officer and Accounting Officer 

14 July 2026

Back to top

Remuneration report

Service contracts

Our employees are civil servants, and under the Constitutional Reform and Governance Act 2010, Civil Service appointments must be made on merit and based on fair and open competition. The Civil Service Commission’s recruitment principles specify some ‘exceptions’, which are usually temporary appointments.

The senior officials featured in this report hold open-ended appointments, either with us or their home Civil Service department if they’re seconded to the WRA. If we or the home department terminates someone’s appointment early, other than for misconduct, they receive compensation through the Civil Service Compensation Scheme (CSCS).

Remuneration policy

The remuneration of members of the Senior Civil Service (SCS) is not delegated to the WRA, unlike the remuneration of staff below SCS level. This means that we set SCS pay in accordance with the rules set out in Chapter 7.1, Annex A of the ‘Civil Service Management Code’ and annual guidance produced by the UK government, following recommendations from the Senior Salaries Review Body (SSRB).

In reaching its recommendations, the SSRB considers:

• the need to recruit, retain, motivate and promote suitably able and qualified people to carry out certain responsibilities
• regional and local variations in labour markets and their effect on staff recruitment, retention and promotion
• government policies to improve public services, including the need to meet output targets for delivering departmental services
• the funds available to departments as set out in the UK government’s departmental expenditure limit and inflation target
• evidence the SSRB receives about wider economic considerations and the affordability of its recommendations

For further information, visit the SSRB website.

Remuneration Committee

Our Remuneration Committee is chaired by a non-executive member. 

The committee has chosen to broadly align its remuneration approach to the Welsh Government’s, which has flexibility to operate within the guidance set by the UK Cabinet Office. This applies to both our SCS and non-SCS employees. For more details, see the Welsh Government’s pay policy.

Our Board’s non-executive members get fees for duties on behalf of the WRA, such as attendance at Board and committee meetings. Fees are paid at a daily rate as set out in their letters of appointment and are as follows:

The rates changed in January 2026, the previous rates were:

• Chair: £400
• Deputy Chair: £350
• Non-executive member: £300

Expenses necessarily incurred in carrying out these duties are also reimbursed.

We offered 1 Board Associate role. Board Associates are paid £200 per day pro rata.

Staff elected members do not receive any remuneration in relation to their Board duties.

Remuneration disclosure

This disclosure provides information about the remuneration and pension interests of WRA Board members. This includes both non-executive members and senior officials but does not include the Board’s staff-elected member.

When we talk about salary we mean both pensionable and non-pensionable amounts and we include gross salaries, overtime, recruitment and retention allowances, or other allowances or payments if members are subject to UK taxation, and any severance or discretionary payments. Reimbursement of legitimate expenses is not included in salary. This report is based on accrued payments we’ve made in 2025 to 2026.

The monetary value of ‘benefits in kind’ covers any benefits we’ve provided that are treated by HM Revenue and Customs (HMRC) as taxable.

To balance reporting requirements against individual privacy, we mostly report remuneration figures in bands of £5,000 (for example, £65,000 to £70,000).

Non-executive remuneration

This table is subject to audit.

In addition to their fees, non-executive members are reimbursed for travel and other expenses under our travel and subsistence policy. We meet the tax liability from this reimbursement.

Non-executive members are not employees of the WRA and do not receive pension benefits.

Senior officials’ remuneration and pension benefits

This table is subject to audit.

Notes

• Footnote 1: Dyfed Alsop left on 30 April 2025.
• Footnote 2: Rebecca Godfrey was appointed as Chief Executive from 28 October 2025 through fair and open competition. She had held the role on an interim basis from 1 May 2025. Prior to this Rebecca held the role of the Chief Operating Officer.
• No bonuses were paid in 2025 to 2026 or 2024 to 2025.
• Benefits in kind were nil in 2025 to 2026. Benefit in kind received in 2024 to 2025 related to the taxable value of a car through salary sacrifice. 
• Rebecca works on a part-time basis; her full-time equivalent salary would have fallen within the £145,000 to £149,999 banding.
• David Matthews was appointed as Strategy and Capability Director in September 2024. His full-time equivalent banded salary in 2024 to 2025 would have been £125,000 to £129,999.

This table is subject to audit. 

Notes

*CETV means cash equivalent transfer value.

** Due to changes in job role, the prior year comparator provided by MyCSP has been updated from £506,000 to £527,000 which is shown above. The CETV value relating to this (£506k-£527k) was 20.

• Footnote 1: Dyfed Alsop left on 30 April 2025
• Footnote 2: Rebecca Godfrey was appointed as Chief Executive from 28 October 2025 through fair and open competition. She had held the role on an interim basis from 1 May 2025. Prior to this Rebecca held the role of the Chief Operating Officer. 

Other staff

Civil Service pensions

Pension benefits are provided through the Civil Service pension arrangements. Before 1 April 2015, the only scheme was the Principal Civil Service Pension Scheme (PCSPS), which is divided into a few different sections – classic, premium, and classic plus provide benefits on a final salary basis, whilst nuvos provides benefits on a career average basis. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis. All newly appointed civil servants, and the majority of those already in service, joined the new scheme.

The PCSPS and alpha are unfunded statutory schemes. Employees and employers make contributions (employee contributions range between 4.6% and 8.05%, depending on salary). The balance of the cost of benefits in payment is met by monies voted by Parliament each year. Pensions in payment are increased annually in line with the Pensions Increase legislation. Instead of the defined benefit arrangements, employees may opt for a defined contribution pension with an employer contribution, the partnership pension account.

In alpha, pension builds up at a rate of 2.32% of pensionable earnings each year, and the total amount accrued is adjusted annually in line with a rate set by HM Treasury. Members may opt to give up (commute) their pension for a lump sum up to the limits set by the Finance Act 2004. All members who switched to alpha from the PCSPS had their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha.

The accrued pensions shown in this report are the pension the member is entitled to receive when they reach normal pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over normal pension age.  Normal pension age is 60 for members of classic, premium and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension age for members of alpha. The pension figures in this report show pension earned in PCSPS or alpha – as appropriate. Where a member has benefits in both the PCSPS and alpha, the figures show the combined value of their benefits in the 2 schemes but note that the constituent parts of that pension may be payable from different ages.

When the Government introduced new public service pension schemes in 2015, there were transitional arrangements which treated existing scheme members differently based on their age. Older members of the PCSPS remained in that scheme, rather than moving to alpha. In 2018, the Court of Appeal found that the transitional arrangements in the public service pension schemes unlawfully discriminated against younger members (the ‘McCloud judgment').

As a result, steps are being taken to remedy those 2015 reforms, making the pension scheme provisions fair to all members. The Public Service Pensions Remedy is made up of 2 parts. The first part closed the PCSPS on 31 March 2022, with all active members becoming members of alpha from 1 April 2022. The second part removes the age discrimination for the remedy period (between 1 April 2015 and 31 March 2022) by moving the membership of eligible members during this period back into the PCSPS on 1 October 2023.

The accrued pension benefits, Cash Equivalent Transfer Value (CETV) and single total figure of remuneration reported for any individual affected by the Public Service Pensions Remedy have been calculated based on their inclusion in the PCSPS for the period between 1 April 2015 and 31 March 2022, following the McCloud judgment. The Public Service Pensions Remedy applies to individuals that were members, or eligible to be members, of a public service pension scheme on 31 March 2012 and were members of a public service pension scheme between 1 April 2015 and 31 March 2022. The basis for the calculation reflects the legal position that affected members have been rolled back into the PCSPS for the remedy period and that this will apply unless the member actively exercises their entitlement on retirement to decide instead to receive benefits calculated under the terms of the alpha scheme for the period from 1 April 2015 to 31 March 2022.

The partnership pension account is an occupational defined contribution pension arrangement that is part of the Legal & General Master trust. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member). The employee does not have to contribute but, where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally provided risk benefit cover (death in service and ill health retirement).

Further details about the Civil Service pension arrangements can be found on the CSPS website.

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement that the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. 

CETVs are worked out in accordance with the Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax that may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Fair pay disclosure

Reporting bodies like the WRA must disclose the relationship between the remuneration of the highest-paid director in their organisation and the lower quartile, median and upper quartile remuneration of their people.

Total remuneration includes salary, non-consolidated performance-related pay and benefits in kind. It does not include severance payments, employer pension contributions and the CETV of pensions. The WRA did not pay any performance-related pay or bonuses in 2025 to 2026 or 2024 to 2025.

The banded remuneration of the highest-paid director in the WRA in the financial year 2025 to 2026 was £100,000 to £104,999 (2024 to 2025: £110,000 to £115,000). This was 2.26 times the median remuneration of the workforce, which was £45,378 (2024 to 2025: 2.5 times, £44,866) using the midpoint of the banded salary range for the highest-paid director.

The ratio in 2025 to 2026 was broadly similar to 2024 to 2025. This is due to the highest-paid directors’ pay being lower in 2025 to 2026. 

In 2025 to 2026 the percentage pay increase for SCS staff was 3.25%. 

In 2025 to 2026, the percentage change from the previous financial year in respect of the highest-paid director was a decrease of 8.9% (2024 to 2025, increase of 4.7%).  This was due to a change of personnel in the highest-paid director role. Average pay in our organisation increased by 3.1% (2024 to 2025: increase of 1.9%).

In 2025 to 2026 and 2024 to 2025, no staff received remuneration greater than the highest-paid director. Remuneration ranged from £27,302 to £102,500 (banded midpoint) (2024 to 2025: £24,420 to £112,500 (banded midpoint)).

People report

This table is subject to audit.

The permanently employed staff in this table include people who are on loan to us from other Civil Service employers, but who remain permanently employed by that Civil Service employer.

Salary includes gross salaries, overtime, recruitment and retention allowances, and other allowances or payments to the extent that they are subject to UK taxation. 

Pension scheme contributions

The PCSPS is an unfunded multi-employer defined benefit scheme in which the WRA is unable to identify its share of the underlying assets and liabilities. A full actuarial valuation was carried out as at 31 March 2020 and the review as at 31 March 2024 is expected to be completed in 2025. Details can be found in the resource accounts of the Civil Service Pensions Scheme Cabinet Office: Civil Superannuation.

For 2025 to 2026, employers’ contributions of £1,591,359 were payable to the PCSPS based on 28.97% of pensionable pay (2024 to 2025: £1,270,904 in the range 26.6% to 30.3%, based on salary bands). The scheme’s actuary reviews employer contributions every 4 years following a full scheme valuation. The contribution rates reflect benefits as they are accrued, not when the costs are actually incurred, and reflect experience of the scheme.

Employees can opt to open a partnership pension account, which is a stakeholder pension with an employer contribution. No employers’ contributions were paid in 2025 to 2026 (2024 to 2025: £2,528) to 1 or more of the panel of 3 appointed stakeholder pension providers. In addition, 0.5% of pensionable pay is payable to the PCSPS to cover the cost of the future provision of lump sum benefits on death in service and ill health retirement of these employees. Employers also match employee contributions up to 3% of pensionable pay.

No persons (in either 2025 to 2026 or 2024 to 2025) retired early on ill health grounds. The total additional accrued pension liabilities in the year were therefore nil.

SCS by pay band

Our organisation does not have any roles at grades SCS3 or SCS4.

Number of persons employed

This table is subject to audit.

Fixed-term staff included cover for existing people’s parental leave or other time away from their role, or where the need for the role was temporary.

Agency staff

Agency staff – average full-time equivalent (FTE):

• 8 for 2025 to 2026
• 5 for 2024 to 2025

People composition

We’re committed to offering a great place to work for all our employees. As part of our commitment, we:

• hold and review equality information on our people to inform our decision-making
• have policies to ensure equal treatment and consider the impact on individuals and groups with characteristics protected by the Equality Act 2010 (for example, disability, age and sex)
• ensure oversight of equality by our Board and Tîm Arwain
• published our equality report in March 2026, covering the period 2024 to 2025

Sickness absence

Sickness absence figures are typically expressed as annual working days lost (AWDL). AWDL per staff year equals the total number of working days lost across the year divided by the total number of potential staff years.

We believe this formula shows the true amount of available days lost more accurately than other ways of calculating AWDL because it excludes weekends and public and privilege holidays. Using total years also correctly accounts for part-time people, new entrants and leavers. For example, someone working half the full-time number of hours per week would have a year of 0.5.

Our level of sickness absence was 6.48 AWDL for the year ending March 2026. This is lower than the latest available published Civil Service figure of 8.2 AWDL for the year ending March 2025. 

Turnover

Turnover figures in the Civil Service are calculated in 2 ways:

• turnover, which means staff leaving the Civil Service as a whole
• departmental turnover, which means staff leaving the WRA but transferring to another Civil Service department or employer

The turnover figure is calculated as the number of leavers divided by the average number of people in post. In 2025 to 2026, 7.3% of staff left the WRA. Of those, 0.9% left the Civil Service and 6.4% moved to other government departments as either a sideways move or on promotion.

Civil Service People Survey

The Civil Service People Survey is a cross-government employee engagement survey. Almost 350,000 civil servants from 102 organisations took part in the 2025 survey. The survey considers responses to the following 5 statements, which are strong indicators of employee engagement: 

• I am proud when I tell others I am part of the WRA
• I would recommend the WRA as a great place to work
• I feel a strong personal attachment to the WRA
• The WRA inspires me to do the best in my job
• The WRA motivates me to help it achieve its objectives

The results can range from 0% to 100%. A score of 0% is all respondents giving a rating of ‘strongly disagree’ to all 5 statements. A score of 100% is all respondents giving a rating of ‘strongly agree’ to all 5 statements.

WRA Civil Service People Survey results

Engagement index:

• 76% for 2025
• 76% for 2024

Our overall score of 76% shows a high level of employee engagement and is significantly higher than the Civil Service average of 65% in 2025 and 64% in 2024.

We publish our results annually on our website at WRA People Survey.

Consultancy costs

Consultancy costs during the period (£000):

• 718 for 2026 to 2026
• 612 for 2024 to 2025

Where specialist skills are required, work is delivered either by appropriately skilled individuals or through consultancy organisations.

The use of specialist consultancy organisations increased during 2025 to 2026, primarily driven by discovery work relating to the national register. Additional consultancy expenditure was incurred to access specialist expertise in network services and security, as well as to provide advice on organisational design and development. This reflects the organisation’s continued growth, both in terms of its size and the expansion of its service offering.

Off payroll disclosures

Off-payroll arrangements apply to individuals who are either self-employed or acting through an intermediary or a service company, rather than being directly employed by us. From 6 April 2017, reforms to legislation (known as IR35) changed the rules for off-payroll people working in the public sector. It moved the obligation to decide their tax status from the contractor to the employer. 

All off-payroll arrangements with individuals have been subject to an IR35 assessment to determine the nature of the working arrangements and ensure transparency and compliance with tax regulations.

Highly paid off-payroll worker engagements as at 31 March 2026, earning £245 per day or greater

Number of existing engagements – 15, of which:

• less than 1 year – 11 
• for between 1 and 2 years – 2 
• for between 2 and 3 years – 0 
• for between 3 and 4 years – 0 
• for 4 or more years – 2

All highly paid off-payroll workers engaged at any point during the year ended 31 March 2026, earning £245 per day or greater

Number of temporary off-payroll workers engaged during the year – 21, of which:

• not subject to off-payroll legislation – 2
• subject to off-payroll legislation and determined as in scope of IR35 – 19
• subject to off-payroll legislation and determined as out of scope of IR35 – 0
• number of engagements reassessed for compliance or assurance purposes during the year – 0
  • of which: number of engagements that saw a change to IR35 status following review – 0

CSCS and other compensation schemes

There were no redundancies or other agreed departures from the WRA during either 2025 to 2026 or 2024 to 2025. And there were no exit packages agreed during the year to 31 March 2026.

We pay redundancy and other exit costs in line with the Civil Service Compensation Scheme (CSCS) under the Superannuation Act 1972. If we agree early retirements, the additional costs are met by us and not the PCSPS. Ill-health retirement costs are met by the pension scheme. 

Well-being

We value the well-being of our people, and we offer a positive and supportive workplace where they can thrive. Throughout the year we ran a number of initiatives to promote well-being, including:

• providing a weekly paid ‘well-being hour’ encouraging our people to prioritise their personal well-being
• creating monthly well-being opportunities linked to our goal of ‘supporting a thriving culture by connecting people, learning together and sharing joy’
• promoting and encouraging our people to join staff networks and support groups
• offering personalised health checks to all staff
• offering an employee assistance programme, a healthcare management platform and mental health first-aider support

Rebecca Godfrey, Chief Executive Officer and Accounting Officer 

14 July 2026

Back to top

The Certificate and report of the Auditor General for Wales to the Senedd.

Opinion on financial statements

I certify that I have audited the financial statements of the Welsh Revenue Authority the year ended 31 March 2026 under the Tax Collection and Management (Wales) Act 2016. 

The financial statements comprise the Statement of Comprehensive Net Expenditure, Statement of Financial Position, Statement of Cash Flows, Statement of Changes in Taxpayers Equity and related notes, including the material accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards as interpreted and adapted by HM Treasury’s Financial Reporting Manual.

In my opinion, in all material respects, the financial statements: 

• give a true and fair view of the state of the Welsh Revenue Authority’s affairs as at 31 March 2026 and of its net expenditure, for the year then ended
• have been properly prepared in accordance with UK adopted international accounting standards as interpreted and adapted by HM Treasury’s Financial Reporting Manual
• have been properly prepared in accordance with Welsh Ministers’ directions issued under the Tax Collection and Management (Wales) Act 2016

Opinion on regularity 

In my opinion, in all material respects, the income and expenditure recorded in the financial statements have been applied to the purposes intended by the Senedd and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with applicable law and International Standards on Auditing in the UK (ISAs (UK)) and Practice Note 10 ‘Audit of financial statements and regularity of public sector bodies in the United Kingdom’. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my certificate. 

My staff and I are independent of the body in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinions.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the body’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this certificate.

The going concern basis of accounting for the Welsh Revenue Authority is adopted in consideration of the requirements set out in HM Treasury’s Government Financial Reporting Manual, which require entities to adopt the going concern basis of accounting in the preparation of the financial statements where it anticipated that the services which they provide will continue into the future.

Other information

The other information comprises the information included in the annual report other than the financial statements and other parts of the report that are audited and my auditor’s report thereon. The Accounting Officer is responsible for the other information in the annual report. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinion on other matters 

In my opinion, the part of the Remuneration and People Report to be audited has been properly prepared in accordance with Welsh Ministers’ directions made under the Tax Collection and Management (Wales) Act 2016. 

In my opinion, based on the work undertaken in the course of my audit:

• the parts of the Accountability Report subject to audit have been properly prepared in accordance with Welsh Minsters’ directions made under the Tax Collection and Management (Wales) Act 2016; and
• the information given in the Performance Overview, Accountability Report and Governance Statement for the financial year for which the financial statements are prepared is consistent with the financial statements and is in accordance with the applicable legal requirements

Matters on which I report by exception

In the light of the knowledge and understanding of the body and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance Overview, Accountability Report and Governance Statement.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• I have not received all of the information and explanations I require for my audit
• proper accounting records have not been kept or returns adequate for my audit have not been received from branches not visited by my team
• the financial statements and the audited part of the Accountability Report are not in agreement with the accounting records and returns
• information specified by Welsh Ministers regarding remuneration and other transactions is not disclosed
• certain disclosures of remuneration specified by HM Treasury’s Government Financial Reporting Manual are not made or parts of the Remuneration and People Report to be audited are not in agreement with the accounting records and returns, or
• the Governance Statement does not reflect compliance with HM Treasury’s guidance

Responsibilities of the Accounting Officer for the financial statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Accounting Officer is responsible for:

• maintaining proper accounting records
• the preparation of the financial statements and Annual Report in accordance with the applicable financial reporting framework and for being satisfied that they give a true and fair view
• ensuring that the Annual Report and financial statements as a whole are fair, balanced and understandable
• ensuring the regularity of financial transactions
• internal controls as the Accounting Officer determines is necessary to enable the preparation of financial statements to be free from material misstatement, whether due to fraud or error
• assessing body’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Accounting Officer anticipates that the services provided by the body will not continue to be provided in the future

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit, certify and report on the financial statements in accordance with the Tax Collection and Management (Wales) Act 2016.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 

My procedures included the following:

• enquiring of management, the head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to the Welsh Revenue Authority’s policies and procedures concerned with: 
  • identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance
  • detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and
  • the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations
• considering as an audit team how and where fraud might occur in the financial statements and any potential indicators of fraud — as part of this discussion, I identified potential for fraud in the following areas: posting of unusual journals
• obtaining an understanding of the Welsh Revenue Authority’s framework of authority as well as other legal and regulatory frameworks that the Welsh Revenue Authority operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of Welsh Revenue Authority
• obtaining an understanding of related party relationships

In addition to the above, my procedures to respond to identified risks included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;
• enquiring of management, the Audit and Risk Committee about actual and potential litigation and claims;
• reading minutes of meetings of the Board and Audit and Risk Committee;
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

I also communicated relevant identified laws and regulations and potential fraud risks to all audit team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Welsh Revenue Authority’s controls, and the nature, timing and extent of the audit procedures performed. 

A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website. This description forms part of my auditor’s report.

Other auditor’s responsibilities

I am required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by the Senedd and the financial transactions recorded in the financial statements conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report

I have no observations to make on these financial statements. 

Adrian Crompton

Auditor General for Wales

1 Capital Quarter

Tyndall Street

 Cardiff

14 July 2026

The maintenance and integrity of the Welsh Revenue Authority’s website is the responsibility of the Accounting Officer; the work carried out by auditors does not involve consideration of these matters and accordingly auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Back to top

Statement of financial position

Rebecca Godfrey, Chief Executive and Accounting Officer
14 July 2026
 

Back to top

1. Statement of accounting policies

1.1 Basis of accounting

These accounts are prepared in accordance with:

• a direction issued by Welsh Ministers, in accordance with Section 29(1)(b) of the Tax Collection and Management (Wales) Act 2016
• the Government Financial Reporting Manual (FReM) issued by HM Treasury
• International Financial Reporting Standards (IFRS) adapted or interpreted for the public sector context
• the accounting policies detailed in subsequent notes

The WRA has considered the impact of standards and interpretations that have been issued but are not yet effective. It is not expected that these will have a material impact on the financial statements.

The financial information contained in the statements and in the notes is rounded to the nearest £1,000.

1.2 Accounting convention

These accounts have been prepared under the historical cost convention, modified according to the requirements of relevant accounting standards and subject to the interpretations and adaptations of FReM standards. Expenditure has been accounted for on an accrual basis. Accounting for funding has been set out in accounting policy 1.7.

1.3 Going concern

These accounts have been prepared on a ‘going concern’ basis, as the WRA is a non-ministerial department of the Welsh Government and receives its revenue funding from the government to meet its liabilities. The WRA expects to remain in existence for the foreseeable future.

1.4 Use of judgement

In preparing these financial statements, management has made judgements that affect the application of the accounting policies and the reported amounts of assets, liabilities and expenses. Actual results may differ from these estimates and are recognised prospectively.

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements is included in the following: The WRA holds no right-of-use assets. The office space allocated to the WRA was directed solely by the Cabinet Secretary for Finance and Welsh Language during the year. Since the Senedd election in May 2026, this responsibility has passed to the Cabinet Minister for Finance.

1.5 Annual leave accrual

Staff annual leave accrual is accounted for within other staff costs. Only the movement in year is charged. The accrual is a calculation to reflect the annual leave owed or owing to staff at the year end.

1.6 Value added tax (VAT)

The WRA is registered for VAT and recovers some elements of VAT for business services and contracted-out services. Other goods and services expenditure is recorded inclusive of VAT in accordance with the HMRC internal government VAT manual.

1.7 Funding

The WRA receives funding from Welsh Government (known as the ‘grant allocation’) to finance its revenue and capital expenditure. In accordance with FReM, these amounts are recorded as financing rather than income and are credited to the general fund. FReM also confirms that this financing is to be accounted for on a cash basis, which we have complied with.

1.8 Cash and cash equivalents

Cash and cash equivalents solely include the balances the WRA holds with financial institutions.

1.9 Segment reporting

IFRS 8 requires entities to disclose information about their operating segments and geographical areas. The WRA operates in one segment and exclusively in Wales. No additional reporting is therefore considered necessary.

1.10 Leases

For 2025 to 2026, the WRA is not party to any lease arrangements (as either the lessor or lessee) under IFRS 16.

1.11 Financial instruments

A financial instrument is a contract that gives rise to a financial asset in one entity and a financial liability or equity instrument in another. IFRS 7 requires disclosure of the role that financial instruments have had during the period in creating or changing the risks an entity faces in undertaking its activities. As the WRA is directly funded by Welsh Government, the only financial instruments within the accounts are financial assets, in the form of trade and other receivables, and financial liabilities, in the form of trade and other payables. The WRA is not considered to be exposed to any significant level of credit, liquidity or interest rate risk. 

1.12 Non-current assets

Equipment

Equipment is carried at fair value. Depreciated historic cost is used as a proxy for the fair value of these assets.

All equipment purchased directly by the WRA costing £5,000 or more is capitalised. 

Depreciation is provided for in the month following acquisition and is calculated to write off the value, less estimated residual value, on an equal instalment basis over its expected useful life, shown as follows.

Intangible assets

As no active market exists due to the bespoke nature of intangible assets, they are stated at historic costs and amortised on a straight-line basis over the estimated useful life or term of the licence. Amortisation is provided for in the month after the asset is acquired.

Intangible assets under development relate to system developments for the implementation of the Registration service. The costs for these are separately reported in note 3.2. Costs are accumulated until the asset is available for use, whereupon it is transferred to the relevant assets class and amortisation is charged. 

Expected useful life of intangible assets

3 years to 7 years for licences and software.

1.13  Accounting standards that have been issued but not yet been adopted

The following accounting standards have been issued and/or amended by the IFRS International Accounting Standards Board (IASB) and IFRS Interpretations Committee (IFRIC) but have not been adopted because they are not yet required to be adopted by the FReM.

IFRS 18 Presentation and Disclosure in Financial Statements 

Application is required for accounting periods beginning on or after 1 January 2027. The standard is not yet UK endorsed and not yet adopted by the FReM. Early adoption is not permitted.

IFRS 19 Subsidiaries without Public Accountability: Disclosures 

Application is required for accounting periods beginning on or after 1 January 2027. The standard is not yet UK endorsed and not yet adopted by the FReM. Early adoption is not permitted.

2. Expenditure

Further analysis of staff and related costs is provided in the ‘Remuneration and people report’.

3. Non-current assets

3.1 Equipment

3.2 Intangible assets

4. Prepayments and other accrued income

5. Cash and cash equivalents

6. Trade and other payables

The majority of the amount in other payables relates to the annual leave accrual.

7. Related-party transactions

The WRA is a non-ministerial department of the Welsh Government. The Welsh Government is a related party. Material transactions during the year with the Welsh Government were as follows:

• revenue funding of £11.11 million was received in the year (2024 to 2025: £8.61 million)

• capital funding received in the year was £1.97 million (2024 to 2025: £120,000).

  Payments of £6.51 million were made to Welsh Government during 2025 to 2026, mainly in relation to payroll costs (2024 to 2025: £6.27 million)

No WRA Board member, senior officer or any of their related parties undertook any material transactions with the WRA during the year.

8. Capital commitments

There were no capital commitments as at 31 March 2026.

9. Contingent assets and liabilities

There were no contingent assets and liabilities as at 31 March 2026.

10. Losses and special payments (this information is subject to audit)

The WRA had 3 losses in 2025 to 2026, the value of which is below the reporting threshold, (1 loss in 2024 to 2025). No special payments were made in 2025 to 2026 or 2024 to 2025.

11. Events after the reporting period

There are no reportable events after the reporting period.

Back to top

The certificate and report of the Auditor General for Wales to the Senedd.

Opinion on financial statements

I certify that I have audited the Welsh Revenue Authority’s Tax Statement for the year ended 31 March 2026 under the Tax Collection and Management (Wales) Act 2016. 

The Tax Statement comprises the Statement of Revenue, Other Income and Expenditure and related notes, including the material accounting policies.  

The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards as interpreted and adapted by HM Treasury’s Financial Reporting Manual.

In my opinion in all material respects, the financial statements: 

• give a true and fair view of the state of affairs of the Welsh Revenue Authority’s Tax Statement as at 31 March 2026 and of the net revenue for the year then ended; 
• have been properly prepared in accordance with UK adopted international accounting standards as interpreted and adapted by HM Treasury’s Financial Reporting Manual; and
• have been properly prepared in accordance with Welsh Ministers’ directions issued under the Tax Collection and Management (Wales) Act 2016.

Opinion on regularity 

In my opinion, in all material respects, the expenditure and income recorded in the Tax Statement have been applied to the purposes intended by the Senedd and the financial transactions recorded in the Tax Statement conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with applicable law and International Standards on Auditing in the UK (ISAs (UK)) and Practice Note 10 ‘Audit of financial statements and regularity of public sector bodies in the United Kingdom’. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my certificate. 

My staff and I are independent of the Welsh Revenue Authority in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinions.

Conclusions relating to going concern

In auditing the Tax Statement, I have concluded that the use of the going concern basis of accounting in the preparation of the Tax Statement is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the body’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this certificate.

The going concern basis of accounting for the Welsh Revenue Authority’s Tax Statement is adopted in consideration of the requirements set out in HM Treasury’s Government Financial Reporting Manual, which require entities to adopt the going concern basis of accounting in the preparation of the financial statements where it anticipated that the services which they provide will continue into the future.

Other information

The other information comprises the information included in the annual report other than the Tax Statement and my auditor’s report thereon. The Accounting Officer is responsible for the other information. My opinion on the Tax Statement does not cover the other information and, except to the extent otherwise explicitly stated in my certificate, I do not express any form of assurance conclusion thereon. My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Tax Statement or knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the Tax Statement itself. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinion on other matters 

In my opinion, based on the work undertaken in the course of my audit the information given in the Performance Overview, Accountability Report and Governance Statement for the financial year for which the Tax Statement is prepared is consistent with the Tax Statement and the Performance Overview, Accountability Report and Governance Statement in accordance with Welsh Ministers’ guidance.

Matters on which I report by exception

In the light of the knowledge and understanding of the Welsh Revenue Authority’s Tax Statement and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance Overview, Accountability Report and the Governance Statement.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• I have not received all of the information and explanations I require for my audit.
• adequate accounting records have not been kept or returns adequate for my audit have not been received from branches not visited by my team;
• the financial statements and the audited part of the Accountability Report are not in agreement with the accounting records and returns; 
• information specified by Welsh Ministers regarding remuneration and other transactions is not disclosed; 
• certain disclosures of remuneration specified by HM Treasury’s Government Financial Reporting Manual are not made or parts of the Remuneration and People Report to be audited are not in agreement with the accounting records and returns; or

the Governance Statement does not reflect compliance with HM Treasury’s guidance.

Responsibilities of the Accounting Officer for the financial statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities the Accounting Officer is responsible for:

• maintaining proper accounting records;
• the preparation of the Welsh Revenue Authority’s Tax Statement and Annual Report in accordance with the Tax Collection and Management (Wales) Act 2016 and Welsh Ministers’ directions made there under, and for being satisfied that they give a true and fair view;
• ensuring that the Annual Report and Welsh Revenue Authority’s Tax Statement as a whole are fair, balanced and understandable;
• ensuring the regularity of financial transactions;
•  internal controls as the Accounting Officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error;
• assessing the ability of the Welsh Revenue Authority’s Tax Statement to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Accounting Officer anticipates that the services provided by the Welsh Revenue Authority Tax Statement will not continue to be provided in the future.

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit, certify and report on the Welsh Revenue Authority’s Tax Statement in accordance with the Tax Collection and Management (Wales) Act 2016.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion. 

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 

My procedures included the following:

• Enquiring of management, the head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to the Welsh Revenue Authority’s policies and procedures concerned with: 
  • identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
  • detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
  • the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• Considering as an audit team how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, I identified potential for fraud in the following areas: posting of unusual journals;
• Obtaining an understanding of the Welsh Revenue Authority’s framework of authority as well as other legal and regulatory frameworks that the Welsh Revenue Authority operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Welsh Revenue Authority;
• Obtaining an understanding of related party relationships.

In addition to the above, my procedures to respond to identified risks included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;
• enquiring of management, the Audit and Risk Committee and legal advisors about actual and potential litigation and claims;
• reading minutes of meetings of the Board and the Audit and Risk Committee;
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

I also communicated relevant identified laws and regulations and potential fraud risks to all audit team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Welsh Revenue Authority’s controls, and the nature, timing and extent of the audit procedures performed. 

A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website. This description forms part of my auditor’s report.

Other auditor’s responsibilities

I am also required to obtain sufficient evidence to give reasonable assurance that the expenditure and income recorded in the Welsh Revenue Authority’s Tax Statement have been applied to the purposes intended by the Senedd and the financial transactions recorded in the Welsh Revenue Authority’s Tax Statement conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report

I have no observations to make on these financial statements. 

Adrian Crompton

Auditor General for Wales

 1 Capital Quarter

 Tyndall Street

CF10 4BZ

Cardiff

14 July 2026

The maintenance and integrity of the Welsh Revenue Authority’s website is the responsibility of the Accounting Officer; the work carried out by auditors does not involve consideration of these matters and accordingly auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Back to top

There were no recognised gains or losses accounted for outside the statement of revenue, other income and expenditure.

Rebecca Godfrey, Chief Executive and Accounting Officer 
14 July 2026 

Notes to the statement of cash flows 

Back to top

1. Statement of accounting policies 

1.1 Basis of accounting 

These accounts are prepared in accordance with: 

• the accounts direction issued by Welsh Ministers, in accordance with section 30(1) of the Tax Collection and Management (Wales) Act 2016 
• the Government Financial Reporting Manual (FReM) issued by HM Treasury 
• International Financial Reporting Standards (IFRS) adapted or interpreted for the public sector context 
• the accounting policies detailed in later notes 

The WRA has considered the impact of standards and interpretations that have been issued but are not yet effective. It is not expected that these will have a material impact on the financial statements. 

The income and any associated expenditure contained within these statements are those flow of funds that the WRA handles on behalf of the Welsh Consolidated Fund and where it is acting as agent rather than as principal. 

The financial information contained in the statements and in the notes is rounded to the nearest £1,000. 

1.2 Accounting convention 

The tax statement has been prepared in accordance with historical cost convention. Taxes, including repayments, are accounted for on an accrual basis. 

1.3 Revenue recognition 

Taxation 

Taxes are measured in accordance with ‘IFRS 15 Revenue from Contracts with Customers’. They are measured at the fair value of amounts received or receivable, net of repayments. Revenue is recognised when: 

• a taxable event has occurred, the revenue can be measured reliably, and it is probable that the economic benefits from the taxable event will flow to the Welsh Consolidated Fund 
• a taxable event occurs when a liability arises to pay a tax 

Any amendments, including higher-rate refunds, are recognised up to 30 April in the following financial year where they relate to a previous financial year. 

Penalties and interest 

Penalties and interest are measured in accordance with IFRS 15. They are measured at the fair value of amounts received or receivable. 

Revenue is recognised when: 

• the penalty or interest charge is validly imposed and becomes receivable by the WRA 

Recognised penalty revenue is reversed in the account: 

• when a penalty is cancelled following correction of a tax return arising from a minor error by the taxpayer or agent 
• when a penalty is cancelled following review by the WRA 
• when, on appeal or for other legal reasons, the penalty is cancelled 

Where penalty or interest revenue recognised in a previous financial year is later considered to be uncollectable for reasons other than given here, this is recorded as an expense at the date it is considered uncollectable. 

The WRA does not recognise the tax gap in the tax statement. This is the difference between the amount of tax that should, in theory, be collected by the WRA (the ‘theoretical liability’) and what is collected. This theoretical tax liability is the tax that would be paid if all taxpayers followed both the letter of the law and the WRA’s interpretation of the intention of Welsh Parliament in setting law (referred to as the ‘spirit of the law’). 

Deferrals 

A deferral occurs when a land transaction has several stages of purchase price setting, and one or more of these stages is due in the future and is conditional on an event occurring. The WRA does not recognise the tax revenue on these future payments until that event occurs and the additional purchase price is payable. An example of a deferral is where land is bought with an additional amount being payable once planning permission is obtained. In this instance tax revenue is recognised on the additional payment at the point in time when the planning is granted. 

Enquiries and tribunals 

In line with FReM, tax revenue, along with tax or penalty refunds arising from enquiry or tribunal cases, is not recognised in the accounts until the decision or judgement is issued. Disclosures in the accounts relating to enquiries or tribunals are only made if they lead to a material financial impact. 

1.4 Use of judgement 

In preparing these financial statements, management has made judgements that affect the application of the accounting policies and the reported amounts of revenue, assets, liability and expenses. Actual results may differ from these estimates and are recognised prospectively. 

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements is included in the following:  

• The disclosure of the contingent liability for refund of higher rate LTT in the accounts is modelled by the WRA. Part of this calculation uses an estimate of the percentage of additional higher rate LTT that is expected to be reclaimed, this input is provided by Welsh Treasury and validated by the Office for Budget Responsibility. 

1.5 Financial instruments 

A financial instrument is a contract that gives rise to a financial asset in one entity and a financial liability or equity instrument in another. ‘IFRS 7 Financial Instruments: Disclosures’ requires disclosure of the role that financial instruments have had during the period in creating or changing the risks an entity faces in undertaking its activities. The only financial instruments within the accounts are financial assets, in the form of receivables, and financial liabilities, in the form of payables. Because of this there is no exposure to significant liquidity, interest rate risk and foreign currency risk. 

1.6 Taxpayer confidentiality 

The WRA takes taxpayers’ confidentiality seriously and will not show any taxpayers’ confidential details within the financial statements that are prohibited under Section 17 of the TCMA 2016 unless there is an overriding legal requirement to do so.  

1.7 Receivables 

FReM does not require the WRA to assess impairments in accordance with ‘IFRS 9 Financial Instruments’, as the standard relates to financial instruments. Taxes arise from statute and not a contract, but impairments have been measured applying the credit loss model set out in IFRS 9. The impairment model in IFRS 9 is based on the premise of providing for expected losses, applying information available and considering the probability of collection. 

The value of WRA receivables is reviewed individually at each reporting period date to decide whether there is any sign of impairment. If such a sign exists, the values in the statement of financial position are reported after impairment to reflect the amount that is likely to be collected. 

Revenue losses occur when the WRA formally ceases collection activity. The vast majority of these cases are driven by individual and business insolvencies. Revenue losses are made up of remissions and write-offs. Remissions are debts capable of recovery where the WRA has decided not to pursue the liability on the grounds of value for money. The WRA only writes off debts that it considers to be irrecoverable when there are no practical means for pursuing the liability. 

Further accounting policies are explained under the relevant notes. 

1.8 Related Party Transactions 

Due to the nature of WRA business, we have transactions, relating to taxation income, with other government departments and other central government bodies. 

Neither Board members, senior officers, nor any of their related parties, undertook any material transactions with the WRA (i.e. transactions of £0.1 million or more) Conflicts of interest forms are required for any transactions of this nature regardless of value. 

1.9 Accounting standards that have been issued but not yet been adopted 

The following accounting standards have been issued and/or amended by the IFRS International Accounting Standards Board (IASB) and IFRS Interpretations Committee (IFRIC) but have not been adopted because they are not yet required to be adopted by the FReM. 

IFRS 18 Presentation and Disclosure in Financial Statements – Application required for accounting periods beginning on or after 1 January 2027. Standard is not yet UK-endorsed and not yet adopted by the FReM. Early adoption is not permitted. 

IFRS 19 Subsidiaries without Public Accountability: Disclosures – Application required for accounting periods beginning on or after 1 January 2027. Standard is not yet UK-endorsed and not yet adopted by the FReM. Early adoption is not permitted. 

2. Revenue and other income 

2.1 Land Transaction Tax 

^[1] This includes mixed-use transactions of £7.9 million in 2025 to 2026 and £19.57 million in 2024 to 2025. This figure has been reduced to account for higher-rate refunds of £28.05 million (2024 to 2025: £22.40 million) that are now treated as main residential rates where taxpayers have successfully claimed a refund. 

The taxable event for LTT is the purchase of land or property. Higher residential rates of LTT are payable on the purchase of additional properties in Wales. The higher rate is repayable to the taxpayer when the taxpayer’s main residence is sold within 3 years of the purchase of the additional property. This is recognised when the taxpayer or agent submits a claim, which creates the obligating event, and the sale of the previous residence falls within the reported financial year or earlier.  

2.2 Landfill Disposals Tax 

LDT is paid when waste is disposed of to landfill and is charged by weight and type of waste. 

2.3 Penalties and interest 

Penalties are charged on the late receipt of tax returns and late payments, or for other reasons allowed under the Tax Collection and Management (Wales) Act 2016. 

Interest is charged on the late payment of tax returns or penalties. 

Due to the nature of the penalty/interest payments there will be fluctuations year on year, and they are not predictable in numbers or amount. 

3. Expenditure 

3.1 Interest paid 

Interest is payable by the WRA on the repayment of any tax liabilities or penalties. 

3.2 Revenue losses 

To protect taxpayer confidentiality these figures are no longer split between taxes.

Revenue losses are made up of debt write-offs and the movement in the provision for tax impairment (see note 4.2).  

Write-offs are debts that, following all reasonable action being undertaken and after careful consideration, are irrecoverable. 

4. Receivables and accrued revenue receivable 

4.1 Receivables due 

Receivables are taxpayer liabilities where the amounts owed by the taxpayer, including financial penalties and interest, have been incurred in the reporting period, but the amounts have not been received by the balance sheet date. 

Accrued revenue receivables are amounts due in relation to tax returns where the tax liability has been proven at the balance sheet date but not returned at the balance sheet date. 

4.2 Impairment provision 

An impairment provision is made when it is probable that tax or penalties due will not be received in full. An impairment is the value of a debt that we consider likely to be irrecoverable in the longer term. Receivables in the statement of financial position are reported after the deduction of the estimated value of impairments. The impairment provision is based on many factors, such as situations when, unfortunately, a taxpayer is about to go into administration or when legal action has been started.  

5. Cash 

 The WRA pays funds to the Welsh Consolidated Fund as instructed by Welsh Government. The above balance stands for funds received from taxes that were not requested prior to 31 March. 

6. Payables and on-account balances 

Payables and on-account balances are amounts recorded as owed by the WRA and where payment has not yet been made. Returns can be amended up to 12 months from the filing date. In some circumstances this will result in a repayment. These balances include outstanding repayments of tax, penalties or interest, including higher-rate refund claims.  

7. Provision for tax at tribunal  

As stated in accounting policy note 1.3, revenue relating to tribunal cases s not recognised in the accounts until the decision or judgement is issued. The provision has been set up to recognise that the WRA has received payments where the taxpayer has appealed to a tribunal in respect of the tax owed. 

8. Contingent assets and liabilities 

8.1 Contingent assets 

We have the power to open an enquiry into anything contained, or required to be contained, in a tax return that relates to:   

• whether the taxpayer is liable to pay tax  
• the amount of tax payable  
• whether the person who made the tax return is entitled to a tax credit claimed in the tax return 

At the conclusion of the enquiry the WRA will advise the taxpayer of the outcome and whether an amendment to the tax return and/or the tax due is being made. When the enquiry is completed and a closure notice issued, any additional tax or reduction in tax is recognised in the financial statements at the date of closure.  

We have a number of open enquiries into LTT and LDT, but it is our opinion that: 

• some of these are at an early stage and it is not yet possible to assess with certainty the amount of tax subject to enquiry 
• to disclose any information on the nature and value may result in the disclosure of protected taxpayer information   

For these reasons, a value for contingent assets relating to enquiries has not been disclosed in these financial statements. 

8.2 Contingent liabilities 

Taxpayers who have paid higher rates on their residential transaction have the right to claim main residential rates on their new main residence if their previous main residence is disposed of within 3 years of the purchase date of the replacement. The taxpayer must send a claim to receive the refund. 

This potential refund of higher-rate tax is shown as a contingent liability for the tax statement due to the uncertainty of reclaims and their timings. For 2025 to 2026, the estimated amount is £14.4 million (2024 to 2025: £17.2 million), calculated based on guidelines issued by the Office for Budget Responsibility. 

9. Balance due to the Welsh Consolidated Fund account 

10. Events after the reporting period 

There are no reportable events after the reporting period. 

Back to top

Agent

We refer to solicitors and/or conveyancers as agents when we discuss LTT matters. 

Amortisation

The apportionment of the cost of an intangible asset over its useful life.

Depreciation

The apportionment of the cost of a tangible non-current asset.

Government Financial Reporting Manual (FReM)

HM Treasury technical accounting guide to the preparation of the financial statements.

International Financial Reporting Standards (IFRS)

These are issued by the International Accounting Standards Board, and financial statements from government use them as the basis of preparation for their accounts.

Mixed use

A ‘mixed’ property (also known as mixed use) has both residential and non-residential elements.

Non-current assets (also called fixed assets)

An asset that is held by the organisation. These can be tangible assets with physical substance or intangible assets – identifiable non-monetary assets without physical substance, for example, licences and software.

Payables

Amounts due for payment to suppliers of goods and services at the end of the reporting period.

Receivables

Amounts owing to the WRA at the end of the reporting period.

Risk profile

A collection of tax returns that have a set of common characteristics that potentially indicate an error in the tax due. 

Tax case

Relates to general handling of queries from taxpayers, their agents and the public.

Tax investigation

Relates to tax recovery/protection.

Taxpayers’ equity

The net assets of the organisation.

Tax protection

Where a claim to refund overpaid tax is found not to be valid and is rejected by the WRA, the amount of tax that would otherwise have been returned to the taxpayer is termed ‘tax protected’.

Tax recovery

The process of recouping the shortfall where the tax amount that was self-assessed (for example, in a tax return) is proven incorrect and more tax is due. 

Unauthorised disposals

A disposal of material made outside of an authorised landfill site.

Welsh Consolidated Fund

The fund used by the Senedd to hold sums voted by Welsh Parliament that are then allocated via a budget motion. A budget motion and resolution is the mechanism proposed in the Government of Wales (Devolved Powers) Bill to ensure that expenditure for the Welsh Consolidated Fund is regular. There must be at least one annual budget motion (the main budget motion), which may be augmented by supplementary budget motions.

Back to top