To be pissed off at the new tax free childcare

[childcarechallenge]

NC for this.

We have two DC in childcare and live in London. I'm starting a new job next month and my salary is 48K, after tax, student loan, childcare costs and tube to work plus a few other generally working expenses (clothes etc) I've worked out that I will take home less than £200 a month.

DH earns a good salary which is good because we almost completely rely on his salary for rent, bills etc. He just received a large bonus which pushes him over 100K which is the new limit for the new tax free childcare scheme from the government.

Essentially, between 100K and 120K after tax, student loan, the loss of his "tax free allowance" which is clawed back over 100K, and the fact that we will not be able to claim £4000 back on our childcare because he is no longer under 100K (This applies to BOTH of us because of his salary) means that of that £20K we are actually only £1800 better off. AIBU to think that this is complete robbery - DH works extremely hard, very long hours (sometimes 70 hour weeks) in a high stress environment and the government seem to take an obscene amount of his salary.

We have an opportunity coming up to move to a lower tax country in a year or so with his job and this just makes me really want to take it, AIBU?

I GeT why OP would be peeved to lose so Mich "bonus" - of I got a £100 bonus and only got £9 of it of be grumptious too but dont get how its so hard to afford to live on the other £140k when lots of us are managing on a fraction of that!

Some people on here don't have a chip on their shoulder, they have the whole fecking potato.

😂😂😂

It is all interesting though because OP is obviously an intelligent and skilled person as her employers rate her highly enough to award her a significantly above average salary. This also indicates she's in an area where there is a skills shortage - or they'd no doubt get away with paying less.

It costs society if she drops out of the employment loop because there's a lack of gain in returning to work after DC. It costs in the loss of revenue she would generate (probably 3 or more times her salary), loss of skill in the workplace and need to replace that skill by costly retraining.

It's more complex than just whether she can afford childcare. It's whether society values her contribution to the GDP. For the sake of a tax break for a couple of years I can't help but think we should offer greater flexibility because the alternate costs and losses are far higher.

i.e. if she doesn't work, that's not just her not paying tax, it's the need to retrain a replacement, £29k less spent on childcare providers and probably other support services also not required like cleaners and less spend on other things. So the lack of tax break, not being given money - just having a bit less tax taken off to encourage working being profitable, could actually quite significantly impact the earnings potential of quite a few other people.

Childcare costs do drain a salary substantially, which is why I've left my well paid job with demanding inflexible hours to work for minimum wage in a small independent shop so that I can fit my shifts around the school runs and the 15 free hours early years education for my 3 year old.

We are substantially better off now as we now keep the whole of my salary as I don't even earn enough to pay income tax.

I will say though, that my "well paid" job was still £20k less than yours and we still managed. I would suggest that you may need to jog something about there.

I live in an almost tax free country but that means we don't have a minimum wage, free healthcare, free education or benefits for people that really need them. Or rubbish collection. Or a government that gives a fuck. I know London is very expensive but you and your DH are wealthy OP, I think it sounds like you need to manage your money better.

Flouncing I agree. It might sound like a lot to others but it is all relative. The country needs high earners they are also a valued part of society.

So what that a higher earner spends more?
More expensive clothes/ holidays/ lifestyle- that's fair enough - they work hard. The point is that if it's made too difficult then the talent leaves and does a more unskilled job or doesn't work or contribute to GDP.

You have my sympathies OP- I get it.

Cry me a fucking river.

It sounds like a lot to others because it is a lot, and OP has said that she is not actually struggling. A lot of people are valuable to society and contribute to the GDP, and struggle more.

There are lifestyle changes the family could make to reduce their outgoings. They choose to have a half hour commute into central London. That is going to be expensive. Everything about London is inflated, property, wages, childcare costs etc. The DH could take a different, lower paid job in a cheaper place. Of course he doesn't have to, but that's a choice he makes.

No one is saying it's wrong to earn a lot of money, but it's a bit crass to whinge about it when many people worry about where their next rent or mortgage payment will come from.

Yes, maybe this tax issue needs sorting out, but frankly I think there are higher priorities.

It might sound like a lot to others but it is all relative

It sounds a lot because it is a lot. Try to spin it as much as you like.

Mainlywingit:
Why do you think the country needs high earners? Personally I think we need people of high ability.
It's not the same.

OP is in a position that most of my friends and family can only dream of, yet she moans......

Without high earners then there will be even less money to fund everything. The country needs high earners and high ability.

Because redacio high earners = high tax which is more income and GDP for the country. Geddit?

Redactio - are you certain that your friends and family can only dream of having a family of four in a two bed rented basement flat like the OP? any smaller and the property is one bedroom for 4 people. No uk council allocates council flats on that basis . How can op be in a position that your friends/family can only dream of?

How can op be in a position that your friends/family can only dream of?

6 figure salaries I think is what is ment.

Sounds like you'd be much better off with a lower paid part time job.

F1GL
My friends and family can only dream of earning circa £150K PA.
You seem to think that equates to poverty.
Did you actually read the original post?

Sounds to me like you'd be bonkers to work for only £200 a month you'd be better off not bothering seeing as it costs you what £3800 a month to actually go to work??!!! My heart bleeds for you...we have to manage on less than £40k a year between me and DH and still manage to an our own 3 bed semi,run 2 decent cars (bought not on finance ) and have a couple of holidays a year and we have a baby! Sounds like you need a reality check to me

*own our own

Are you planning to work in HK OP or just your husband? Because if you aren't planning to work then you will be in the same situation as you would be by taking a career break here and you said you didn't want time out of the job market because it would damage future employability.

High earners contribute more through VAT too, as the majority will naturally spend more.

Where I live (Isle of Wight) £20K is considered a good wage. I really don't get the defence of the wealthy OPs position.
One country, different planets.

Of course we need high earners. High earners = high achievers. If someone chooses to work hard at school, get to uni, study hard for a few years before eventually being able to earn good money in their mid 20's, then good luck to them. Why should they have to apologise to people who don't bother at school, and leave with no qualifications to go into low paid work at 16? If we all earned the same, what incentive would there be to work hard to become doctors, solicitors etc? and I speak as someone who came from a pretty deprived childhood, but who is now comfortable financially through hard work and determination, showing there are no barriers if you really want to work hard.