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?

OP yes move to LaLa land. You are not going to get much sympathy here. Seriously!

This is one (not the only one, but it is one) of the reasons I'm a SAHM. I don't ask for sympathy, but the tax system means the trade off just isn't worthwhile for us.

It's unlikely to change, because it'd be politically unpopular to give - effectively - a big tax break to wealthy people. But when I did work, I had a very highly paid job and so paid a lot of tax.

the government seem to take an obscene amount of his salary

To pay for your childrens schooling, their medical costs (their births, for a start), and all the services and benefits you take for granted.
Who else do you think is supposed to pay for it?

His bonus wildly varies from year to year. I'm not really sure how much political power he would have to delay a bonus but if we take this move we would probably be able to have next years bonus paid to that country instead even if that meant a bit of a delay.

*off the back.

If you aren't happy to pay your share in taxes then by all means go to another country.

maximise his pension contributions for the year so he stays under the threshold.
and for all those begrudgers who do you think is subsidizing your tax credits?

Paying it into his pension is a good idea OP, is that an option? Or stick it in an ISA or invest it somewhere?

Try being a carer on £62.10 a week.
That's also 'working hard' for way more than 70 hours.

i would move in your shoes too, in fact we did, for quality of life reasons more than money. I would hate to have to move back. We're better off with the vouchers, and I agree with all the people saying for him to up his pension contributions. It must feel like a long old slog every day - I earn the same amount and still take home £1400 over my expenses but one of my DC is primary age now - have you calculated how your childcare costs will fall year on year? That may help you feel better - this is our last really expensive year for example.

I don't have a huge amount of sympathy purely because if you're 'on the edge' of the threshold there are lots of things you can do to take yourself back under. Increase pension contributions or charitable giving. Playing the system a bit, yes. If you have an accountant they are either very moral or not very good.

And I don't understand how people get into jobs where they earn THAT much and don't understand how to get round things like this.

You don't 'only' bring in £200. Family money is family money. You are investing in your future earning potential and your pension. Childcare isn't forever. It pisses me off when people in a couple say 'it COSTS me money to go to work because of childcare'. No it doesn't, because childcare is a family cost not 'to be paid for out of mummy's salary and if she can afford it she gets to go out to work as a reward'

Well another way to look at it is that the government have subsidised your wages for a period and boosted them to be higher so you've earnt more in previous years 8n that sense

You are on huge salaries and I think you will get some very jealous people on here.

I think YANBU. Why should you be penalised for being high earners? And I say this as someone who will never be one. I don't think it's fair.

Not all employers offer the old childcare vouchers - his doesn't. Im not sure if I will be able to sign up to it as the government is switching over to the new system. I start at the end of next month.

When you move jobs you lose your membership to the old scheme.

To all the people saying childcare shouldn't just me my expense it makes no difference. We have joint account for everything and the only reason i worked it out that way is to make things a bit simpler and because I did the maths to work out if it was worth my while actually working. It wasn't. So i got a different job.

wow and i was flamed for saying 30k joint income was pretty average on another thread!

childcare are you going back full time and your DH is working 70+ hours a week? If so, I feel very sorry for you, that is a long old slog with 2 DC. I'm not sure I'd do it personally, I do work FT but very flexibly.

I'd definitely take the opportunity to move OP.

I mean, who would want to live in a society where rich people are taxed so that poor people can afford to live? #brokenbritain

Try being a carer on £62.10 a week.
That's also 'working hard' for way more than 70 hours.

Same here. When I did work though we paid childcare with no govt help and no tax credits. I don't even think the childcare voucher schemes existed back then and we were earning less than £40k as a couple working full time.

Some people are happy to pay more to help those less well off.

There has to be a cut off point somewhere.

Enjoy your new low tax country.

What a load of bitchy posts. A lot of Mumsnetters will be benefitting from that 91% tax payment

OP, YANBU to move country if that's what you want. Don't forget though, that your childcare outgoing won't be forever and then you might be better off so staying here isn't such a bad idea!!

fakenews Yes i am going back full time, In my old job I was 4 days a week but because I'm going to a new job to get a bigger salary I have to start full time although they have said they allow working from home once a week. My old job also had a 10 minute bus commute and the new one is a 30 minute tube ride which is another pain as the kids will be in nursery for a long time each day.

DH is no help with nursery runs but he barely ever works on Sundays so at least have that!

OP, did you read the posts re your DH upping pension contribution to get under 100k threshold?

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

I dont get this? You're actual 'Take home' isn't £200, you've just chosen to deduct outgoings from it. If everyone did that then their 'Take home' would be minuscule.

Your £200 is left over after bills. Some people would dream of having that.

I used to get £3000 a month in my pay packet, but after rent. Council tax, gas, electric, petrol, food and phone my take home was £10....
Its a skewed and stupid way to look at things.

-my income is 'only' £13k per annum and I pay tax

Your childcare costs must be horribly high so it must be a kick in the teeth that they can't be lowered. How old are your DC?