“As her total income is £53,000 a year, she would also be hit with a £525 High Income Child Benefit charge – so a total of £1,546 in tax.
“If the cash savings were sheltered within a cash ISA, none of this additional tax would be paid, saving £1,546 a year.”
Child benefit is actually set to increase this month, providing further support to parents at what is currently a challenging time.
Currently, child benefit is worth £21.05 per week for the eldest or only child in a family.
