Scrap tax on overtime hours, says Reform UK
Summary
Reform UK, a political party, wants to stop taxing overtime hours for workers who earn less than £75,000 a year. They say this would help people who work extra hours keep more money and encourage working more, but other parties and experts question how the plan would be paid for and its effects.Key Facts
- Reform UK proposes removing income tax on overtime above 40 hours a week for workers earning under £75,000.
- They estimate a nurse working six extra hours weekly could save over £1,300 annually.
- The policy would cost about £5 billion each year and be funded by cuts to welfare payments.
- About 90% of workers could benefit, including 3.2 million people who receive overtime pay.
- Reform UK wants to change laws to make it easier for workers to use this tax break.
- Other political parties doubt where the money for these plans would come from.
- Experts warn the plan could encourage classifying more work as "overtime" to avoid tax.
- Previous Reform UK policies include cutting payments to some people with anxiety and limiting benefits to EU citizens.
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