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?

London has more talent because a lot of talented people who can or wish to gravitate to it. They don't all live within half an hour's commute away.

I also work in London. I expect I have a provincial opinion though as I only commute.

at posters being called "provincial" on this thread.

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.

What lame brained, reductive bollocks.

The OP's husband has been called a wealthy leech which is ironic considering the amount of tax he's paying...

I'll just chew my straw and polish my combine harvester over here.

Babycham Bonuses aren't really just about how hard you work though, it's about how much value you add to the bottom line that year.

A salesperson will take a % of their sales home as a bonus and this works well for employers because they can pay a lower wage, and not take the risk of a salesperson not selling anything. And salespeople like this because it gives them room to earn more for a job well done (high sales). Teaching unions have traditionally opposed performance related pay.

Venus

I never said people who leave school at 16 to get jobs are lazy. But obviously people who go down that route aren't going to get in high earning professions, due to these professions asking for higher academic qualifications which are only available if you go to uni or college. Likewise, high earners doesn't necessarily mean earning over £100k. I'm a nurse, working nights, and have been for 20+ years, and I consider myself to be pretty comfortable financially. I live in the north and earn well above average for where I live. I guess, as OPs have pointed out, that earning over £100k in London isn't that huge, as the standard of living there is massive. Up North, i live in a 4 bedroomed, detached house, double garage, lovely area worth about £200k. Compare that to something similar down in London and you would be lucky to get it for much less than £1million.

You could trade your combine in for a four bed detached by me venus

I don't envy anyone living in London. It's a dirty place where everything costs £££££££. Particularly accomodation. £2k to rent a 2 bed basement flat for a family of 4. Not sure why anyone envies that.

People don't seem to be able to separate the "£150k" headline figure from the cost of living. OP has £200 left at the end of the month. Well, consider what she would have left if she rented a 3 bed property more appropriately sized for her family of 4. Nothing at all. Ends would not be meeting. Ends are only meeting because she is overcrowded.

yanbu.

it's always a bit harsh when you're earning at the top end of a tax bracket and then move to the bottom of the next, the pay increase is almost always destroyed by the jump in tax. it's pants. i was totally fucking outraged when my husbands bonus meant we we had to pay back out child benefit!

you'll get no sympathy on mn tho

You're not far off Livelove around here the cheapest 4 bedroom detached house (which has a single garage) is on the market for £1.6M. London is NUTS for house prices. We will be saving forever for a deposit, and then stamp duty on top as well.

Rightmove estimates for that property the mortgage repayments would be 7,287 a month with a 10% deposit over 25 years. Assuming no student loan, just to pay mortgage payments but nothing else that would be a pre tax salary of £145,477.

Next time you're in a hospital lovelove do be sure to tell the nurses that they're poorly paid because they didn't work hard enough to become doctors. Especially at the start of a 12 hour shift, that's sure to motivate them!

I went to Uni, did every extra course going, all the extra work I could in my job, got married and pregnant and expected to return to work. Now I'm a SAHM due to his health and when I do go back it will probably be into low paid casual work because of the career gap not because I'm a lazy and thick. So next time you're sneering down your nose at some lowly minion, perhaps consider your education didn't provide you with everything you need to know

But obviously people who go down that route aren't going to get in high earning professions, due to these professions asking for higher academic qualifications which are only available if you go to uni or college

Maybe not those professions.

Doesn't mean they can't earn 6 figures in other ones though.

So the OP and DH could have a lovely big house if they chose to move up north. They would have room for an au pair if they wanted, or any childcare is cheaper. They choose to live within a very short commute of the most expensive place in the country. Thus their outgoings are higher as well as their salaries. But two talented people would surely be able to find something which pays relatively well elsewhere.

I've only got to page 3 of the thread...I think in your shoes ,with such tiny new dc ,and being left with £200 a month,£50 a week after full time hours and kiddies in full time childcare...makes no sense to me...I would be packing the job in untill kiddies were older and no childcare costs..I'd be looking at being aSAHM.

Fair enough live. I read too much into your post and I did think that you were implying that low earners just hadn't worked hard enough. Sorry I jumped to conclusions.

Although I do think there is an element of luck involved. The luck of being born with the ability to do well academically. Obviously you need to capitalise on that by combining it with effort, but some people could study all day and night and not be able to pass A levels. And there are inequalities in the workplace, as you could have two equally capable graduates in two different companies and one will get training, development opportunities, mentoring whilst the other will have none of that. That's when things spiral out of your control because without the opportunity to learn new skills you can't work your way up.

Did everyone watch the Martin Lewis programme on this?

FIG1

The OP and DH have to cut their cloth to suit their circumstances, like everyone. They can't afford currently to rent a 3 bed place half an hour out of London. Something's got to give. Plenty of people have to bring up children in a one bed when young as they can't afford anything larger. That's hard.

*half an hour out of central London

You don't have to life in London either. There are plenty of commuter towns and areas that are expensive but as expensive, it's just a choice that you have chosen to make. You have choices but it's easier to whinge about the price of houses, I suppose.

^^ I meant to say areas that are still somewhat expensive but not "london" prices.

I don't understand how the op would only have 200/month left on that salary.

I'm assuming you live in a very upmarket area with very expensive childcare.

I live in London and earn much less, but have a lot more left after all costs are taken.

Maybe moving to a cheaper part of London would be an answer? Cheaper rent/mortgage, and cheaper childcare.