Secondary tax rates

I know a lot of the students who work for me will love National’s policy to reduce the deduction rate for secondary tax to under 20% from the current 33%.

Many students have a couple of part-time jobs. Their combined income puts them in the lowest tax bracket but instead of having tax deducted at 15% on their second job, they have more than twice as much deducted and have to wait a year or more to claim it back – if they even remember to. This can make a significant difference to weekly income.

I’d say over half the students who work for me are using a secondary tax code, and will benefit from this. A very sensible change.