Does paying Scottish or Welsh income tax affect my cycle to work scheme savings?

The answer is... potentially

If your salary is paid to you within a Scottish jurisdiction then your savings will be different from workers in England, Wales and Northern Ireland. 

If your salary is paid to you within a Welsh justification then your savings are presently the same as workers in England and Northern Ireland, but as the rates are reviewed every year this could change. 

Scotland:

The Scottish Rate of Income Tax was introduced to workers on April 6th, 2016. Since that date workers in Scotland pay a different rate of Income Tax to compatriots in England, Wales and Northern Ireland. 

At the time of writing, Scottish tax rates could vary from English, Welsh and Northern Irish equivalents by around 1%, however this could be a lot more due to the different bands of Taxable Income in Scotland vs England, Wales and Northern Ireland. You can check the most up to date Scottish rates on the Government website here and compare with the English and Northern Ireland rates here.

As the rates are not greatly different from from those of England and Northern Ireland, Cyclescheme has opted not to introduce complexity into our calculators. Instead, we've simply opted to acknowledge the fact that the forecasts that our calculators will generate will be slightly less accurate for Scottish taxpayers. 

Helping hand 

There is one key salary range to highlight where the savings will differ dramatically;

If you earn between £43,663 - £50,270 in Scotland your tax rate is 41%, whereas in England, Wales and Northern Ireland this is 20%. In order to view more accurate savings with a difference of around 1% instead of 20%, enter a salary of £50,271 or more (this salary comes with a tax rate of 40% in the UK, Wales and NI).

Wales:

At the time of writing the Welsh Rate of Tax was the same as it's English and Northern Irish equivalents (2022-2023).

However, it is understood that Wales may have a more variable tax rate at some point in the future. The reason being that each year, the Welsh Government decides the Welsh rates of income tax which are added to the reduced UK rates; choosing to vary these rates, or keep them the same as those paid by English and Northern Irish taxpayers. You can read more on this here.

To find out the exact Rate of Tax for Wales, visit the Government website here. You can compare this to the English and Northern Irish Rates of Tax to see if your savings will vary. 


For a personalised savings figure that includes ownership fees, visit our calculator and enter your details.

You can search to see if your workplace is signed up using the search box on Cyclescheme's homepage.

Please note 🚨

The other factor which contributes towards eligibility and affordability is National Minimum Wage/National Living Wage. You can view the rates for the UK via the GOV website here. If you earn NMW/NLW wage or close to it, you should checkout another of our FAQ's here.

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