Proposals have been set out for an extra £6,200 tax-free allowance designed to help certain workers. This new policy could offer relief to over a million taxpayers.
A parliamentary petition has been launched advocating for an extra allowance of £6,285 for second jobs, in a bid to increase the take-home pay for those putting in extra hours. The campaign argues: “About 1.26 to 1.35 million people in the UK work second jobs, often due to rising living costs. As personal allowance is usually used by a main job, second-job income is taxed immediately, reducing extra earnings for workers trying to cover essential expenses.”
Currently, individuals can earn up to £12,570 annually without facing income tax under the personal allowance. The proposed £6,285 would mark a 50 per cent boost, representing half of the existing personal allowance threshold.
Labour had previously pledged to unfreeze the allowance from 2028 onwards. However, Chancellor Rachel Reeves confirmed during the Autumn Budget 2025 that the freeze would continue until at least 2031.
The petition sets out its argument for the additional allowance. The campaigners urge: “A dedicated £6,285 allowance for second jobs would support working people who are contributing more to the economy through additional employment.
“It could help key workers, part-time workers, carers, students, and low- to middle-income households keep more of what they earn. We believe this change would encourage employment, reduce financial pressure on households, and reward hard work without removing the existing personal allowance for primary employment.”
View 2 ImagesPlans have been set out for a new tax allowance(Image: Getty)
For those paying the basic income tax rate of 20 per cent, an extra £6,285 tax-free allowance could potentially deliver annual savings of £1,257. Support for the proposal can be registered on the website.
In England, Wales and Northern Ireland, once you exceed the personal allowance threshold, the basic income tax rate applies to earnings up to £50,270. Beyond this, the higher 40 per cent rate kicks in for income between £50,271 and £125,140, while the additional 45 per cent rate applies to anything above £125,140.
One crucial point to remember is that your personal allowance begins to diminish once your income surpasses £100,000. For every £2 earned above this figure, you forfeit £1 of your allowance, meaning it disappears entirely once your income hits £125,140 – which also marks the threshold for the additional rate.