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

[NameChangeBonus]

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?

This always happens.
Clearly @justabigdisco thinks posting on MN should be means tested

@NameChangeBonus is just asking about a problem she has. That is the purpose of MN, AIUI.

I would definitely ask your employers about putting the full gross amount of your bonus into the company pension as an AVC. You should be able to do that as a one off. I don't know any pension scheme administrator that would decline an employee AVC.

OP, did you not realise that you’re not allowed to ask for advice on here unless it’s about something that definitely doesnt relate to having more money than people think you deserve? How dare you earn a good wage and further dare to ask a related question on a site for women. Put that embarrassing light back under a bushel please. You know we’re not allowed one of those here!

Seriously, I do hope you can resolve this as it is actually one of those things that is really annoying. I hope you can get good advice somewhere and I think it’s fine to ask for that advice and I’m sorry that you’ve had the reception you have here. It’s shitty of people and they’re showing themselves up.

Definitely this. Or ask them to give it to charity as you obviously don’t need it.

My heart is bleeding 😂

Sipp

This is is a classic case of divide and conquer in action. The people earning around 100k when you earn 25k or 30k are not your enemies. They are not the super rich exacerbating the huge disparity of wealth in society.

👏🏻👏🏻👏🏻 Just quoting @publicopinionssss once again for those in the back. Very very true.

100% put into pension. I had this situation when I was younger.

Best plan in the long term is emigrate, you can see from Mumsnet that people just want you to pay more tax and have no idea how fucked commuters in the South East are by house prices, train fares and childcare costs.

I bet it's not easy being green?

Hi OP, sounds like after all your nursery fees, mortgage etc and with Christmas coming, you could actually do with this bonus.
Could they give it to you in cash?
Or could they pay it into your husbands account instead, as I presume his tax rate is lower?

Where has OP said she doesn't need the money? Is your problem that you are unhappy with your own salary?

Misses point of thread, is there someone with a username of rape should be legal?! Wtf!

Anyway-“ If you're earning £200k+ between you” they aren’t. OP has stated partner earns less. It’s all relative, usually the more you earn the higher your outgoings tend to be. Paying to put children through private school in London would be extortionate I’d have thought, I don’t think 96k would cover that plus a mortgage.

I’d ask not to have it and donate it to charity, but there are good suggestions on the thread.

You can contribute the excess to a private pension

😆 😆 😆

Oh, don't tell me – you actually earn three times OP's salary? Again, though, where does OP say she doesn't need the money? It's not a great look, displaying bitterness, even on an anonymous forum.

Wow the responses to this thread - on a forum for parents who, supposedly, know how cripplingly expensive childcare is.
OP I don't earn and at age 52 I never will, earn what you do, but I can understand that receiving a bonus should not, literally, cost you money.
Slightly left field suggestion for the medium term - would it be worth considering a slight reduction in your working week - possibly down to 4.5 days? As you're discovering it may not cost you much in reality.

You can always ask not to be given the bonus until after 5th April so that it falls into next tax year and you can adjust your pension contributions accordingly. Or just refuse it altogether or only accept the amount that will keep you £1 below the trigger threshold.

What @RiderofRohan said. Hope you find a solution soon, that sounds really difficult. Ignore the jealous and ignorant comments

If you can’t put it in your pension I’d ask for it to be put back in the pot and redistributed amongst my team.

Mumsnet is proper weird over money.

If you earn less than 200k you’re a loser but if you earn more than 50k you’ve got plenty of money and can’t ever have any money issues.

Pants on fire.

Hi OP, could you make extraordinary pension contributions? If you can send the excess lot there. Charitable giving is also a good option.

I'm having a similar dilemma. I'm currently taking home <50% of my gross income.

I wouldn't complain if it went to public services, but my tax and NI with this government seems to just go to Rishis mates....

OP isn’t even a massively high earner to be honest. Plenty make a lot more than that.

We Women really are our own worse enemies.

who needs Men to put us down when we do it so freely! 🤦🏽‍♀️

ffs if you’re unhappy with your life and what you earn maybe instead of commenting on a topic which obviously triggers you, sit down and have a look at yourself and better yourself if not financially then mentally.

jealousy is an ugly trait and you wont get far in life like that or by putting people down, you made your comment, you got yout little dopamine hit by putting down someone yet what have you achieved? The OP still earning £100k and you look like a twat.

op- sorry no advice as I earn no where near that lol but the nasty comments you have recieved are disgusting.

I love to see other women in successful positions with higher salaries so well done and i hope you sort it out.

Mumsnet is proper weird over money

If you earn less than 200k you’re a loser but if you earn more than 50k you’ve got plenty of money and can’t ever have any money issues.

@Teateaandmoretea so true!