Plans have been set out for a new £6,200 tax-free allowance to benefit certain workers, potentially providing relief for more than one million taxpayers. A petition to Parliament has been launched calling for an extra allowance of £6,285 for second jobs, aiming to boost the take-home pay of those who work extra hours.
The campaign message states: '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, the personal allowance allows individuals to earn up to £12,570 a year without paying income tax. An additional £6,285 would represent a 50 per cent increase, as this amount is half the current personal allowance.
Background on the Personal Allowance
Labour had previously indicated it would allow the frozen allowance to rise again from 2028. However, Chancellor Rachel Reeves announced at the Autumn Budget 2025 that the allowance would remain in place until at least 2031.
The petition argues: '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.'
Potential Tax Savings
For those paying income tax at the basic rate of 20 per cent, an additional £6,285 tax-free allowance could potentially save £1,257 a year in tax. Supporters can sign the petition on the official petition website.
In England, Wales, and Northern Ireland, once the personal allowance threshold is crossed, the basic rate of income tax applies to earnings up to £50,270. The higher 40 per cent rate applies to earnings between £50,271 and £125,140, and the additional 45 per cent rate on any income above £125,140.
It is important to note that once income exceeds £100,000, the personal allowance begins to be reduced. For every £2 earned over this limit, £1 of the allowance is lost, meaning zero allowance once income reaches £125,140, which is also the threshold for the additional rate.
