Reform UK Proposes Tax-Free Overtime Above 40 Hours
Reform UK called for income tax on overtime above a 40-hour week to be scrapped for workers earning under £75,000. The party estimated the measure would cost £5 billion annually and would be funded by welfare cuts.
The BbcReform UK proposed scrapping income tax on overtime worked above a 40-hour week for employees earning less than £75,000. The party said the change, which it called a "hard work bonus," would save a full-time nurse working six hours of overtime each week more than £1,300 a year.
Reform UK estimated the policy would cost £5 billion annually and said the cost would be covered by planned reductions in welfare payments.
2 million workers currently receive overtime pay.
Helen Miller of the Institute for Fiscal Studies said the proposal was "problematic in principle and practice" and questioned why an incentive should target employees already working at least 40 hours a week. " Reform UK also said it would change related EU law, including Working Time Regulations, to allow workers to take advantage of the tax break.
Key Facts
Story Timeline
4 events- Today
Reform UK announced proposal to scrap income tax on overtime above 40 hours for workers under £75,000.
2 sourcesBBC · bbc.co.uk - Today
Nigel Farage stated the plan would make work pay and restore a strong work culture.
2 sourcesBBC · bbc.co.uk - Today
Labour, Conservative and Liberal Democrat spokespeople questioned funding for the £5bn measure.
2 sourcesBBC · bbc.co.uk - 2025
Trade Unions Congress estimated 3.8 million people worked 7.2 unpaid hours per week on average.
2 sourcesBBC · bbc.co.uk
Potential Impact
- 01
Workers earning under £75,000 could receive higher net pay for overtime hours.
- 02
Reform UK would need to identify £5 billion in annual welfare savings to fund the tax cut.
- 03
Employers might reclassify regular hours as overtime to reduce tax liabilities.
Transparency Panel
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