New job, now no longer entitled to tax free childcare?

[gemloving]

My husband got a new job this week. He won't be starting before mid May/ beginning of June due his 3 months probation but he will in the higher earner bracket including his bonus which means we won't get tax free childcare.

He says we should be entitled to it until April 2024 given his first bonus will only be paid out in June 2024 and for the next tax year, he won't actually be earning over the threshold.

Is he right? I don't want to get this wrong, then be fined later on.

We have a 1 year old (2 in April) and a 4 year old (starting school in September), baby coming in September, both still at a childminder (please don't judge that I didn't send my 4 year old to preschool), it felt like the right choice for him and still feels like it despite us having had a place at a preschool x

You'll have to calculate his earnings for the tax year to see if the income he earns across the two jobs for the year is under the threshold. But yes, certainly possible and sounds like he's done that and is happy he's under the threshold.

Why would anyone judge you for the childminder?

Sounds right. You can also pay into a pension to bring things down a bit if you’re on the cusp.

Is his basic salary under £100k and it's a bonus that would take it over?

In that case I would look to put some/all of the bonus into his pension to be eligible for TFC.

You can (and probably should) double check the numbers, but it sounds quite possible that he'll be under the threshold for the next year.

If when you check the figures he's just over the threshold, he could put a bit more in a pension, or even give some away to a charity and claim gift aid to get him back under the threshold.

@Merrow yes, without bonus, he is under.

@Futurethoughts you're right. You questioning it has made me realise how insecure I felt about it but no reason.

@Lockdownmummy exactly because the new job pay a 20% bonus which would push him over.

@11 yes he won't be much over. I will speak to him about pensions and how this can be done as maybe we could save a little on new baby's fees despite us being financially secure right now.

@110APiccadilly the above post was for you.

My company have a bonus sacrifice scheme (not in a position to need it yet for TFC!) to put an amount into your pension.

Find out if his new company does. If not might be worth getting some financial advice.

DH is in a similar position and we’re putting it into both our pensions, to make sure we’re still eligible.