Hmrc tweak could mean uk households keep £4,000 more of salary

HMRC may alter a policy potentially saving UK households up to £4,000, should the Labour government yield to pressure and embrace a Reform UK perspective. Chancellor Rachel Reeves faces

calls to implement measures proposed by Reform UK leader Nigel Farage MP. Nigel Farage has proposed a fully transferable marriage allowance within the tax system, enabling spouses to

transfer any unused personal tax allowance to one another. Under current regulations, families with dual incomes are missing out on nearly £4,000 in well-earned money due to taxation,

compared to households with a singular breadwinner. Daniel Herring, a fiscal researcher at CPS, commented: "Families often function as integrated economic units, pooling resources and

making collective decisions about earning, spending and caring responsibilities. "The tax system should reflect this reality rather than treating each individual in isolation, as if

family financial decisions happen in separate bubbles. In terms of fairness and moving the tax system towards neutrality, Reform's proposals are excellent policy." While Farage has

pledged as much as £80bn in new investment - including the abolition of the two-child benefit limit and higher winter fuel allowances – he has not fully detailed how these would be funded,

reports Birmingham Live. Helen Miller, deputy director of the Institute for Fiscal Studies, expressed concern: "The risk is that we hear much more about sizeable giveaways on tax and

benefits while getting nothing like the same amount of specificity about the big cuts to spending on public services that would be needed for the plan to be implementable." Political

commentator and Reform supporter Tim Montgomerie acknowledged to the BBC: "I wouldn't say the numbers do add up yet, I readily concede that." He emphasised that it was too

early before an election to expect a fully costed policy platform from the party. Nigel Farage conceded that his financial projections might not be precise but stressed they indicate

"an idea of direction, policy, of priorities, of what we think is important, of what we think it is going to cost". He defended his stance on welfare by saying, "We believe

lifting the two-child cap is the best thing to do, not because we support a benefits culture but because we believe for lower-paid workers this actually makes having children just a little

bit easier for them,". Farage also criticised current abortion laws, stating, "I think it's ludicrous, absolutely ludicrous, that we can allow abortion up to 24 weeks, and

yet, if a child is born prematurely at 22 weeks, your local hospital will move heaven and earth and probably succeed in that child surviving and going on and living a normal life," he

said.