Make work pay

Make Work Pay proposes that the Government builds on the successful increase in the personal income tax allowance by raising National Insurance thresholds to create a universal working income, which would see the first £1,000 earned every month (ie £12,000 a year) be completely free of income tax and National Insurance. This would be a £459 tax cut for anyone earning more than £12,000 a year, and take 2.4 million low-paid workers out of taxes on earnings altogether. The tax system should also ensure every worker, keeps at least 51p in every extra £1 they earn, which we term the ‘work guarantee’. This would be delivered by reform of various pinch points in the tax system – the marriage allowance, the high-income child benefit charge, and the 62p tax rate as the personal allowance is withdrawn for high earners.

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