Martin Lewis highlights 'bonkers' tax loophole to earn more by getting paid less View Image

Martin Lewis, the personal finance expert, has highlighted a 'loophole' in the tax system that paradoxically means individuals could be 'better off' earning less interest on their savings. The founder of Money Saving Expert explained that people could 'literally have more money in your pocket if you earn less interest.

' He was referring to those who are on the cusp of the higher 40 per cent tax rate which kicks in at £50,270. All income earned up to that point, after the initial £12,570, is taxed at 20%.

He stated: "It all starts because the rate at which you pay higher rate tax is £50,270. For each pound you earn after that, the tax increases from 20% to 40%, so you only take home 60%, but at

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