High earner query - basically over 100% tax on xmas bonus.

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My employer has decided to be very generous and give everyone £5k cash bonus this Xmas (in previous years they have given £2k). I have adjusted my salary sacrifice pension contributions so I earn approximately £96k gross. I cannot amend this until April as per my employer policy. I thought there was enough buffer for bonus and benefits.

problem is if I earn over £100k (I have 2 kids aged 1 and 3 in full time nursery)

• I will pay 60 % tax on my bonus
• i will become ineligible for tax free childcare - worth £333 per month,£4k per year
• I will become ineligible for 30 hours childcare for DD1 - worth £600 per month, £7k per year.

basically because I’m getting this bonus we’ll be much worse off financially - is there anything I can do to avoid this?

omg seriously things are tight !!
earning that much money and your partner works as well !

you wanna try living on ssp of £104 a week due to surgery !
Shane you choose to have kids but stick then in a nursery !
whats the point

Jealousy isn't a nice quality in a person.

I’d rather be home with my kids than stick my kids in a nursery

People like you are pathetic. It's a very valid problem and a very unfair one.

You'd don't owe anyone an explanation OP, your question was a fair one and it's not like you don't work for your money!
Sad to see so many envious and spiteful responses.

But some people have to pay a mortgage and have careers.

Also I do hope your husband earns enough for you to comfortably live off with no benefit claims. Stating at home is only a lifestyle choice of you can do it with no government help.

I take it you don’t live in a city….

when childcare is £2,200 per month, a £100,000 salary isn’t being spent on diamond shoes!!!

What a stupid comment.

Ah, but at least those people have access to food banks. What about those people living in the middle of a genocide? Or people who will be living on the street through the winter, in the lashing rain and the snow, and over Christmas. Both are so much worse off, and would probably rather like to have the problem of having to get their food from food banks. 🙄

OP is in the top 7% of earners

top 7% of all earners or paye earners?

WTAF!!!! Most of us need to work for our income.

I would ask for a bit less and some extra leave to try to balance it. Or see if you can purchase more annual leave.

but then why is it a race to the bottom ? everyone is different, its down to the various companies and location eg london etc

We'll be thankful to op and others, who allow you to do this

I’d rather be home with my kids than stick my kids in a nursery

@Blanc4 I think your kids would rather you weren’t an idiot 🤷🏻‍♀️

Can't believe people are still putting the boot in.

And you expect people like the OP to fund that luxury but then come on here and criticise her.

Perfect answer!

When my kids were little my hubbie was a higher wage earner (£ 80 k ?at the time )
yes we had a mortgage and had no benefits

I chose to give up my career and be with my kids
It’s about living within your means

Well said @Dibblydoodahdah .

Thanks Charlie2121, it's been a while since I studied tax.

Some of the comments here are entirely unnecessary. The OP earns a high salary, pays a decent whack of tax and is entitled to ask a perfectly reasonable question just as much as those on lower salaries.

When did we become a country that despises high earners? The top 1% of earners pay 30% of income tax. The current state of public services is a common theme on MN yet we berate and shame those who are paying a significant amount of tax towards them.

How does your comment answer the op with her question ?

Add to your pension. There is a 60% tax trap as you earn over 100k - 120k (i think) because of personal allowance.

Google it and you will see

Well you’re not just living on SSP then are you! Make up your mind.