Create a tax-free overtime allowance for overtime worked above 40 hours per week

Open for signatures 129 signatures

What the petition asks

We want the Government to introduce a change to Income Tax so that genuine overtime worked above 40 hours per week is tax free, up to a set cap. This should apply only to hours worked above a person’s normal contracted hours. The policy should also comply with existing working time law.

We believe people who work beyond a full working week should keep more of what they earn from those extra hours. A tax-free overtime allowance could improve take-home pay, make extra shifts more worthwhile, help employers fill hard-to-cover shifts and support the wider economy. Limiting it to genuine overtime above contracted hours, with a cap and payroll recording, would help reduce abuse and make the policy more practical and affordable.

Timeline

14 May 2026

Petition opened for signatures

Key facts

Signatures 129

Status Open for signatures

Department HM Treasury

Opened 14 May 2026

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