Close to Upper earnings limit for 30 hours childcare

[LoisLittsLover]

Hi

Dh earns approx 80 000 a year - I know this is a very good wage, and we are very lucky. He also gets an annual bonus which is decided and paid in March ie the end of the tax year.

100 000 is the earning limit for being able to claim for 30 hours funded childcare or the top up childcare scheme. Realistically dh may just tip that amount, or he may be under the threshold. He cannot retrospectivally alter his pension contributions to take him under the limit.

Has anyone got any advice as to whether there is any 'give' in the system whereas if he did tip over the limit we could gradually pay back the money, as wouldn't be able to do so in one go.

Surely the bonus level will be announced then he can sacrifice some of it into pension if it's looking close? It needn't be an increase in his regular pension contribution

@Parkandride the bonus is announced in March but I don't think the system is quick enough that it would be processed before his pay day.

It's worth asking, I've got a week between announcement and payday and they can process it.
Otherwise could he pay into a SIPP? Not an expert but don't you claim the higher rate relief back on tax return

Aren’t you already over the limit with your earnings added in too?

Thanks parkandride, will get him to explore with his company

The £100 000 is an individual limit as I understand, not joint. I earn a significantly lower amount

When you start earning over £100k you start losing your personal allowance so might be worth paying extra into a pension just for this alone!