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<p>The Government understands that people across the UK are worried about the cost
of living, and has taken decisive action to get households and businesses through
this winter and the next.</p><p>Introducing a tax relief on bonuses or discretionary
payments could risk tax avoidance in circumstances where individuals are able to set
artificially low contracted hours in order to benefit from additional tax-free payments.</p><p>The
Government remains committed to managing the public finances in a disciplined and
responsible way by targeting support where it is most needed. Tax reliefs are difficult
to target in this way; they are of greatest benefit to those paying higher rates of
tax while low-earning individuals benefit less or not at all.</p>
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