Create a tax-free overtime allowance for overtime worked above 40 hours per week

Background

We want the Government to introduce a change to Income Tax so that genuine overtime worked above 40 hours per week is tax free, up to a set cap. This should apply only to hours worked above a person’s normal contracted hours. The policy should also comply with existing working time law.

Additional details

We believe people who work beyond a full working week should keep more of what they earn from those extra hours. A tax-free overtime allowance could improve take-home pay, make extra shifts more worthwhile, help employers fill hard-to-cover shifts and support the wider economy. Limiting it to genuine overtime above contracted hours, with a cap and payroll recording, would help reduce abuse and make the policy more practical and affordable.

Where it’s popular

Constituencies with the most signatures on this petition.