Please or to access all these features

Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

Tax Free Childcare - losing eligibility over £100,000

61 replies

123456kent · 26/11/2022 10:50

Hello,
My husband earns very near the £100,000 mark, and so in March we’d expect him to lose our eligibility for TFC and 30 Free Hours once he has a bonus/salary increase. Has anyone confirmed they are no longer eligible on the website? What happens? Do they take back any of their top ups? If we were to maximise on building up this account between now and then (to earn the maximum amount of top up) will it be stripped off us as soon as we say we are no longer eligible? Thanks

OP posts:
Are your children’s vaccines up to date?
New posts on this thread. Refresh page
NewNovember · 22/08/2023 10:03

BodegaSushi · 22/08/2023 08:36

Does the person earning £100k not pay tax? They are the tax payer lol

Yes hilarious are you 12?

Heartbreaktuna · 22/08/2023 09:31

@kashka81 I live in the NE Scotland. Salaries are terrible, and the nursery bill for my son is still £1.7k ! £80 a day

BodegaSushi · 22/08/2023 08:36

Greenfairydust · 22/01/2023 08:56

Really?

Why on earth would someone with a family income of £100,000 expect the tax payer to fund their childcare?

This really needs some serious reforming.

Does the person earning £100k not pay tax? They are the tax payer lol

UnicornRidge · 22/08/2023 07:54

imkenough · 18/08/2023 08:37

You can be paying £4K of tax a month and get no rebate on the childcare fees you pay? What madness, when some people pay nothing into the system at all.

We pay so much into the system and get nothing back. This is driving many high earners away from this country. Disincentivising people from doing more hours and earning more.

People blame NHS doctors for retiring early, leaving the UK. Fix this pension trap and this high tax regime that gives nothing back. It is contributing towards the labour shortage.

kashka81 · 18/08/2023 11:24

@Perfect28 forgot to tag you, please see my last post.

kashka81 · 18/08/2023 09:51

Is it? I emigrated from Poland to London 15 years ago with barely any money in my bank account and used to sleep on a mattress in a tiny room that I shared with two other people. I've worked my way up to get where I am now.

Living in London for me has been hard work and persistance. It's really unfair to hear comments like this.

roses2 · 18/08/2023 08:52

plinkypots · 28/11/2022 00:27

Just put the overage amount into a pension and that will bring you back under.

This - pay more into the pension for a year or two so the take home taxable is less than £100k.

MrsSamR · 18/08/2023 08:50

Littlefish · 27/11/2022 23:51

For 30 hour funding, I think that you BOTH need to be earning over £100k each to lose your eligibility.

This is incorrect. My husband earns over 100k and I don't and we don't qualify. It's if either of you earn over 100k.

imkenough · 18/08/2023 08:37

BCBird · 18/08/2023 08:28

You can be earning just under 10k a month and get reduced cost childcare? What madness, when we don't have free school.meaks for all (in primary)😠

You can be paying £4K of tax a month and get no rebate on the childcare fees you pay? What madness, when some people pay nothing into the system at all.

BCBird · 18/08/2023 08:28

You can be earning just under 10k a month and get reduced cost childcare? What madness, when we don't have free school.meaks for all (in primary)😠

Blondeshavemorefun · 18/08/2023 08:14

It should be based on family income

2 parents earning £99k so £198 will get vouchers to help

2 parent earning £110k and other day £20 so £130k won't get it

Yes you can increase pension to rerun E under £100k

Perfect28 · 17/08/2023 19:25

@kashka81 living in an expensive place is a luxury and a privilege many cannot afford.

Mammyloveswine · 17/08/2023 18:14

My heart bleeds..

rwalker · 17/08/2023 18:01

user1497787065 · 28/11/2022 00:03

So parents earning almost 200k annually still get 30 hours free childcare? Complete madness.

I appreciate that childcare is expensive and when I had my children there was no government funded childcare but cannot accept that the taxpayer funds childcare at that level of salary.

Why shouldn’t they they’ve probably paid nearly twice as much as my entire salary in deductions
I don’t begrudge them 30 hours
and thank you for subsidising the rest of us

kashka81 · 17/08/2023 17:58

My husband and I earn £177k/year combined. Still below £200k but I bet a lot of people here would say we make really good money. Now, let me break it up for you...

We live in London and my son's nursery costs us £1.7k/month (some people have to pay a lot more than this, trust me). The other son's afterschool clubs etc come up to around £400/month. Mortgage on a London-based property costs us just under £2k/month (again, this cost can be a lot higher). That's 90% of one salary gone, and I haven't even factored in bills, commute, grocery shopping, car insurance, petrol etc. Imagine if this was to be paid by one, single parent... or if we had two kids below the age of 3 to pay childcare for.

We struggle to save anything atm, and the 30 free hours scheme will really help our household budget. I understand many people here live outside of the large cities but the cost of living differs depending on where one's based so please bear that in mind when posting such comments.

rwalker · 19/03/2023 12:21

user1497787065 · 28/11/2022 00:03

So parents earning almost 200k annually still get 30 hours free childcare? Complete madness.

I appreciate that childcare is expensive and when I had my children there was no government funded childcare but cannot accept that the taxpayer funds childcare at that level of salary.

There’ll be paying a huge amount of tax why shouldn’t the get the 30 Hours there not cash cows supporting the rest of us
and they only earn that much because they got off there arse

I earn 29k a year btw

Penfold1635 · 19/03/2023 12:16

I know it sounds like a lot, but two children in full time nursery near me is over £4000 a month. One person on a £100k (take home around £5500), after nursery costs there isn’t much left!

theholidaymum · 22/01/2023 19:29

Greenfairydust · 22/01/2023 08:56

Really?

Why on earth would someone with a family income of £100,000 expect the tax payer to fund their childcare?

This really needs some serious reforming.

You need to remember that these people are also the one paying the most into “tax payer money” so why they can’t get help with childcare?

they also pay a ridiculous amount of taxes any if one earns over £100k and the other parent not as much or none.

LongStoryShorty · 22/01/2023 13:22

our family income after tax is about 9-10k/ month, but it all goes… we are not paying for childcare as I’m looking after the kids as I run my own business.

Greenfairydust · 22/01/2023 08:56

Really?

Why on earth would someone with a family income of £100,000 expect the tax payer to fund their childcare?

This really needs some serious reforming.

nannynick · 22/01/2023 08:45

It's using data from your payslips. So if your gross pay is higher than 100k but your employer offers a salary sacrifice pension scheme, you can pay more to pension which sacrifices gross pay, resulting in a lower gross pay figure being reported to HMRC.

If your gross pay is higher than 100k and you pay in to a personal pension / SIPP then I don't think that counts as reducing your pay for the purposes of TFC eligibility.

LongStoryShorty · 22/01/2023 00:58

I thought it’s if you earn 100k after tax, is that right or not?

theremaybetulipsahead · 12/01/2023 09:38

If it was solely about need for childcare then people on maternity leave wouldn’t be entitled to 30 hours, but SAHP with the same age baby not. It is about ‘rewarding’ those who work.

happyfishcoco · 11/01/2023 12:13

Confitofduckand · 01/01/2023 20:06

It is astonishingly unfair when you look at the other side of it.

A child living in poverty is eligible for 15 hours free childcare from the age of 2.

When they turn three, their richer peer gets 30 hours free childcare, but the child living in poverty still gets only 15 hours.

I posted on this a while ago on MN and was really shocked that so many agreed with the system because of the argument that non-working parents don’t need childcare. The reason those children are offered 15 hours at the age of two is to close the attainment gap that correlates so closely with poverty in the UK (and elsewhere) - it is quite difficult to get a job that fits inside 15 hours of childcare, so it doesn’t serve all that effectively as a ‘back to work’ scheme.

I had posted because, as a governor in a nursery, a child on a child protection plan (at significant risk of abuse), was not eligible for more than 15 hours. A social services case worker could have awarded 30 hours, apparently, but that wasn’t happening. Their wealthier peer, however, got 30 hours and a (paid for by parents, but inexpensive) hot meal (As governors, we had a policy that we would use the school’s budget to fund free school meals for the children whose parents earned below the FSM threshold in a primary school setting, but because the children from lower income backgrounds were only in for 3 hours a day, they missed the chance of getting the funded lunch). Even worse, during Covid, the 15 hour children were ‘bubbled’ in one room and the 30 hour children were put in another, so we had segregation by parental income.

I was chastened to learn from that MN thread that I started (… and from the board of governors on which I was sitting), that this is not considered unfair by many and is not the cause of the moral outrage that I had thought it would be.

Not much of a solution for OP, but it is my opinion that the highest income threshold on this scheme is generous (and that it is the poorest who should be funded 30 hours).

their richer peer gets 30 hours free childcare

  1. both parents' work does not mean rich or richer.
  2. they get 30 hours of free childcare because they are at work and no one takes care of their children.
  3. why would a 3-year-old need 30 hours in school when one parent is at home? or even both parents are at home doing nothing?
  4. who get 30 hours are paid a lot of tax.
  5. everyone can have free 30 hours, when the child is 4 years old in this country. I think that is good enough.
UnicornRidge · 01/01/2023 20:59

@iknowwheretheothersockgoes This assumption is sad. Many female single parents earn much less than men. Then they assume other female single parents can't be high earners.

@theholidaymum Very unfair. Pay so much tax but get no help on childcare. In Denmark, they pay slightly higher tax on salary, but no council tax, childcare is a few hundred a month only.

Swipe left for the next trending thread