Plans have been set out for an additional £6,200 tax-free allowance to benefit certain workers. The new policy could provide 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, to boost the take-home pay of those who work extra hours. The new 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.”
In line with the personal allowance, you can 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.
Labour had previously said it would allow the frozen allowance to rise again from 2028. But Chancellor Rachel Reeves announced at the Autumn Budget 2025 that the allowance would remain in place until at least 2031.
The petition goes on to make the case for the extra 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.”
If you pay income tax at the basic rate of 20 per cent, having an additional £6,285 tax-free allowance could potentially save you £1,257 a year in tax. You can sign your support on the petition website.
In England, Wales and Northern Ireland, once you cross the personal allowance threshold, you pay the basic rate of income tax on your earnings up to £50,270. You then pay the higher 40 per cent rate on any earnings between £50,271 to £125,140, and the additional 45 per cent rate on any income above £125,140.
However, once rule to note is that once your income moves above £100,000, you start to lose your personal allowance. You lose £1 of the allowance for each £2 you earn over this limit, meaning you get zero allowance once your income reaches £125,140, which is also the threshold for the additional rate.