Cut Income Tax for Low Earners and Exempt All Overtime Pay from Tax.

Cut Income Tax for Low Earners and Exempt All Overtime Pay from Tax. — 10 signatures. Status: rejected.

Petition background

Reform Income Tax: Significantly reduce the 20% basic rate for low-to-middle income earners or substantially raise the Personal Allowance. Also, introduce a full exemption from Income Tax and NICs for all overtime pay. This is vital to ease the cost of living crisis and incentivise work.

Additional details

This is vital to ease the cost of living crisis and incentivise work. Justification for this Cost of Living: The 20% tax rate above the Personal Allowance places an unsustainable burden on low earners, driving hardship despite full employment. Tax rates must align with the soaring cost of essentials. Incentive to Work: Taxing overtime reduces the take-home benefit, discouraging workers from taking on extra shifts. Tax exemption on overtime will directly boost income and rewards hard work.

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