NORMALLY, WORKERS CAN EARN £12,570 WITHOUT PAYING INCOME TAX, KNOWN AS THE PERSONAL ALLOWANCE. 06:49, 03 Jun 2025 Some workers can get £18,570 tax free by using a HMRC saving loophole.

Normally, workers can earn £12,570 without paying Income Tax, known as the Personal Allowance. But those earning less than £18,570 per year can boost their tax-free allowance to that amount

by using a little-known HMRC rule called the Starting Rate for Savings. Martin Lewis, the BBC and ITV star, said: "If you earn less than £18,570 a year from earned income and savings

combined, then all your interest from those savings could be tax-free. READ MORE UK FACES 'SPANISH SCORCHER' HEATWAVE WITH 31C AS EXACT DATE IT STARTS ANNOUNCED "That's

amounting to a mere £286. "Given that she has no earned income, the interest on her savings is largely covered by a mix of allowances: Personal allowance – the initial £12,570 is exempt

from tax. Starting savings rate – the subsequent £5,000 is also tax-free, meaning £17,570 of the interest income is taxed at 0%. Personal savings allowance – ensures the next £1,000 is

tax-free, so £18,570 is taxed at 0%." HMRC says: "You may also receive up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings. Article

continues below "The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be. You're not eligible for the starting rate

for savings if your other income is £17,570 or more. Your starting rate for savings is a maximum of £5,000. Every £1 of other income above your Personal Allowance reduces your starting rate

for savings by £1." You earn £16,000 of wages and get £200 interest on your savings. Your Personal Allowance is £12,570, HMRC says. It's used up by the first £12,570 of your

wages. The remaining £3,430 of your wages (£16,000 minus £12,570) reduces your starting rate for savings by £3,430.