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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To be pissed off at the new tax free childcare

974 replies

childcarechallenge · 14/02/2017 10:58

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?

OP posts:
venusinscorpio · 14/02/2017 21:31

The OP and family could easily afford to buy a bigger property in a different city, even taking a wage cut. It's only because they live half an hour on a tube route from central London that they are stuck in a rented flat.

mainlywingingit · 14/02/2017 21:32

Redactio you are sounding rather provincial. Obviously life in the IOW is different to London...

PigletWasPoohsFriend · 14/02/2017 21:35

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?

Yep because those are the only two options avaliable Hmm

Nurses and midwives work hard at school, have to now do degrees. How many of those do you know earn 6 figures.

How about people through illness having had a high paid job have to take a lower paid one. Or have to take part time work to look after an ill relative.

How about people who leave school at 16 and end up millionaires.

Stereotyping people into set groups doesn't work.

venusinscorpio · 14/02/2017 21:36

That's quite rude. That's what life is like for half the country. The IOW has low wages, so do many locations. It absolutely doesn't mean that people earning these lower wages are any less talented and hardworking than people in London on an inflated salary, paying the inflated property prices.

PigletWasPoohsFriend · 14/02/2017 21:36

Redactio you are sounding rather provincial. Obviously life in the IOW is different to London

How rude.

Funnily enough London isn't the be all and end all.

treaclesoda · 14/02/2017 21:40

Live surely you're not naïve enough to believe that the only people in the UK in poorly paid jobs are people who couldn't be bothered to work hard? The country is awash with people who are highly qualified and motivated but still in poorly paid jobs. And for that matter, leaving school and going to work at 16 doesn't equal laziness. Some people aren't academic and are never going to be doctors etc but it doesn't make them lazy, it just makes them not academic.

BabychamSocialist · 14/02/2017 21:42

My heart bleeds for you. Me and DP are both very senior in our professions and don't make as much as that with nearly 20 years experience each because we decided to work in the public sector.

If you can't live on £148k a year then you need a budget immediately.

mainlywingingit · 14/02/2017 21:44

No it's not rude. There is clearly more talent in London. FACT.

More complex jobs, Longer hours, more skilled/ qualified individuals that reflect the salaries.
You couldn't swap IOW and London and have the same jobs done.
Not saying better people but YES more talent.

It is also rude to say these Londoners have 'inflated salaries'. Many of these people work
60/70 hour weeks and have worked hard to get there and deserve every penny they earn as life is so expensive in London. If you have not lived there then it is a provincial opinion.

Not inflated. Higher salaries reflecting the above appropriately. We are not talking about inflated bankers salaries.

Herculesupatree · 14/02/2017 21:45

This reply has been deleted

Message withdrawn at poster's request.

FlouncingInAWinterWonderland · 14/02/2017 21:46

livelovebehappy i believe in live and let live and that the OP has done well for herself and her family in life and shouldn't have to appologise to others for that. It isn't the same as everyone else not earning to the same level having dropped out of school and not tryed. All sorts of factors affect elements of life. Dragging others down doesn't build us up, actually drops us all a little lower. But running those down who are less fortunate pushes their morale just a little further and builds an unnecessary extra barrier.

Yvemen · 14/02/2017 21:49

YANBU!

Consider moving a little further on the outskirts of London, Kent or Essex then commute in, the rent could be a lot cheaper.

I have a friend that has moved to HK woth family, it seems like a good move, she is planning to spend about 2 years out there. She will be coming back with really great experience and to a better role.

I am young also (mid twenties), nowhere near £148k joint income yet, but have my own struggles with a tiny take home pay after outgoings. You've just gotta swallow the pill that this is your grinding season where you have to struggle a bit, make some cut back and make it work. It won't last forever!

Consider the nanny option, or even a nanny share!

venusinscorpio · 14/02/2017 21:49

No one is dragging the OP down. The people certain posters are dragging down are those people who are not lucky enough to earn as much as the OP and her DH. A lot of false assumptions are being made about poorer people's lack of talent and work ethic.

pinkish · 14/02/2017 21:49

mainly I used to work in London. Was I more talented then?

Original poster
childcarechallenge · 14/02/2017 21:50

Babycham I have repeatedly said that we are not poor, we are not struggling to put food on the table or pay bills and we've been on holiday in the last 12 months. However, after childcare costs essentially negate most of my salary, we are paying half of DH salary on rent (2K). Rents are expensive here, a 3/4 bedroom house is around 3K a month - this is why we live in a flat.

After taking home 58K of his 100K salary, it feels like we are being robbed to only take home 9% of a bonus. 9%! I don't see why that seems like a reasonable amount to anyone... I would expect to receive at least half, that seems reasonable to me.. apparently not to most people here.

OP posts:
RufusTheSpartacusReindeer · 14/02/2017 21:51

if you have not lived there then it is a provincial opinion

London isnt the only large city

treaclesoda · 14/02/2017 21:51

Of course there is more talent in London. There are more people in London. Confused It doesn't mean they work harder than people elsewhere just because there are more people, a proportion of whom are in senior roles.

RufusTheSpartacusReindeer · 14/02/2017 21:52

I agree completely re the bonus childcare

RufusTheSpartacusReindeer · 14/02/2017 21:53

You forgot to say FACT treacle

So did i

venusinscorpio · 14/02/2017 21:53

Everything in London is inflated. Mainly, you are very rude. "A provincial opinion" indeed. Is that not as good as a superior London opinion?

Fakenewsday · 14/02/2017 21:53

I agree too, 9% of a bonus is not great and would upset most people. And your DH has already paid £42k in tax.

PigletWasPoohsFriend · 14/02/2017 21:54

It is also rude to say these Londoners have 'inflated salaries'. Many of these people work
60/70 hour weeks and have worked hard to get there and deserve every penny they earn

Many people work those sorts of hours yet get no where near that money.

venusinscorpio · 14/02/2017 21:55

But it is kind of a very small violin situation. You know, when people are struggling to make ends meet.

BabychamSocialist · 14/02/2017 21:55

Maybe you do deserve more of that bonus. Personally, I would love any bonus at all. Me and DP haven't had any pay rises for a good few years and now I am getting one, it's capped at 1%.

Personally I think bonuses are immoral because they are essentially something not available to 99% of workers who work just as hard, often in more menial or thankless jobs. I'm a teacher, I would say I work as hard as any banker or accountant who gets a huge bonus.

mainlywingingit · 14/02/2017 21:56

Pinkish depends on your job.

London has more talent. I didn't say London has 100% talent.
Are you either a high earner contributing to GDP and higher VAT? Or less well paid but highly skilled therefore talent?

PigletWasPoohsFriend · 14/02/2017 21:57

If you have not lived there then it is a provincial opinion.

Oh and I have lived and worked there. Still think you are rude.

There is life outside of London.