Brits can use HMRC ‘loophole’ to earn £18,570 a year tax-free – are you eligible?

• Low-income Britons can avoid paying tax on up to £6,000 of savings interest by using specific HMRC allowances.
• The standard personal allowance is currently frozen at £12,570, but individuals earning under this threshold from work or pensions can receive a Starting Rate for Savings of up to £5,000.
• The £5,000 starting savings rate decreases by £1 for every £1 earned above the personal allowance, completely phasing out once earned income reaches £17,570.
• Basic-rate taxpayers earning less than £50,270 can also claim an additional £1,000 Personal Savings Allowance alongside their starting savings rate.
• Financial presenter Martin Lewis noted that these measures primarily benefit retirees and individuals with low work earnings who receive significant interest from savings.

IN FULL

Little-known HMRC ‘loophole’ to earn £18,570 a year without paying a penny in tax