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?

childcarechallenge - I wish schools would teach the concept of Activity Based Costing so that adults could make more informed analyses of how they are being ripped off!

I don't but I know that the child's ages will be a contributor with cost because when children are 0-2 they are on a 1:3 ratio (1 staff 3 children) 2-3 is 1:4 and 3-5 is 1:8- therefore your younger child will obviously need a lot more care such as nappy changes, feeds etc. For example (these costs are 10 years old so I know they aren't much) £42.50 per full day for child age 0-2 then going down to £40.50 for 2-3 and £38 for 3+ they used to give a full time discount so 7.30-6 m-f the child would basically get a day "free" if you were to go by daily fee. It would possibly be worth shopping around as such. But also, just because a nursery is classed as good it doesn't mean their care is lesser than the outstanding ones- they will be working towards the outstanding grading and have adequate facilities.

The mysoginyst manifesto

Indeed!

Would you Fred? Sorry, profit is a strange word but I am genuinely interested.

And you like the nursery and it's convenient, but expensive.

These are choices that you can make when you have plenty of money.

Also, have you thought of a childminder or nanny? They could be considerably cheaper

In other countries, where people have better quantitative skills, governments make childcare tax deductible and means tested because they would never get away with the costs foisted on the innumerate British.

Bobo don't you think that people like the OP who are earning £££ might be slightly greater beneficiaries of 'the system' than those who are doing work that is equally or (dare I say it) more important and difficult, but not so financially remunerative?

Would I? I have for years! I didn't want to give up my career and worked freelance. Sometimes my salary didn't even cover half our childcare. I took the hit to ensure I had a good job later on in life.

the innumerate British.

nice...

We don't know what sort of social value the OP's work has.

What about a business owner who employs 1000 people and whose business allows them to feed and house their families? Is that valuable work?

Its £80/day from 8.00-6.00, you normally have to pay for pick and drop on top of it to stay sane.

Pseudo you have no idea what kind of work DH or I do...

Okay interesting Fred. I wouldn't if the household would be that worse off as a whole. I'm not sure many people could afford to make that choice. Not for >1000 a month.

diana

I am assuming that bobo is a net contributor and is allowed to be rude

Yes, I am paying a really horrible amount of tax this year. But I am not rude - I am pointing out that you all ought to be angry with the way the government fails to teach you numeracy skills and can then conveniently shaft you.

Dixie you could afford for your household to be more than 1000£ worse off a month?

No grey that's the pre tax salary you need to cover nursery. Not what it actually costs. I can assure you it's a normal priced nursery for the area.

Bobo that's avoiding the question.

A highly paid business owner may do work that is indeed beneficial for society, but is that work more beneficial than the same hours done by a teacher, or nurse? No, but it's better paid, and the business owner is the beneficiary of that.

I presume the OP and her DH work in financial services, or something of that ilk - correct me if I'm wrong OP - but her particular circumstances are irrelevant to the wider point.

It is far and away more beneficial to society to be a business owner providing 1000 jobs than it is to be a nurse or teacher. No comparison.

You could afford it, OP, couldn't you? You'd just prefer to consider that you can't. If you really wanted to work I think you'd feel differently. And you'd compromise on other things. And say to your husband that maybe it wasn't going to work like this.

I am pointing out that you all ought to be angry with the way the government fails to teach you numeracy skills and can then conveniently shaft you

I have maths A level does that count? Totally happy with the tax I pay, we pay a lot between us. I think high earners should pay more tax, not less, Fwiw

Remember - we can only afford to have teachers and nurses paid for by the state because there are businesses. No business -> no money for state services.

So, Philip Green or Mike Ashley is more beneficial to society than a fucking nurse? I don't think so.

Okay I'm looking up nurseries in the area and we actually get a great deal. My friends nursery for 2 kids same ages as mine would be 35k a year (we get a bit of a sibling discount where we are and it's in a slightly cheaper neighbourhood - only 10 mins on the bus though) both nurseries are "good" ofsted.

£80/day is after you have paid your tax and ni. Apart from pension, everything else you pay is after tax.