30 free hours and 100k salary

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I earn over 100k so have always accepted I won't be eligible for the 30 free hours. I have two in childcare so it's costly. I'm the main earner so I pay eeeeeverything, childcare is crippling!

A friend of mine (mid 40s, NHS nurse) has a husband who is a fairly experienced hospital consultant. North West based. Surely (surely!?) he'd be over 100k too, or either way combined they'll be on >£100k. I don't know how many times she's told me "oh don't worry, you'll be like us soon and benefit from the 30 free hours, it'll transform your life!" type of thing. I've always just smiled and never been that type to say "well actually I'm over the salary threshold" but how might they have been claiming this?! I mean I don't know her DH is over £100k for sure, but he's mid 40s, consultant, works FT. I'd be amazed if they're not!

The NHS pay scales are online so I suppose you could check. If he is just over that may be he puts a lot into a pension to take him under it. They will still get the 15 free hours but these hour are not very useful anyway as not in school holidays and also not for those with 3 month old babies etc and parents who work full time sometimes feel they pay more for the non free hours to make up for the free ones.

Well it's individual salary that counts not combined so if they are both under then they can claim.

Funnelling it into his pension probably if he is over £100k.

You’d be surprised. Consultant salaries don’t go over £100k until you have been a consultant for more than 10 years, so if he is in his 40s it’s highly unlikely he’s making £100k.

I'm not sure about the exact salary mechanism, but it looks quite likely that, if the 100k is taxable salary, he could easily be under after pension contributions:
www.bma.org.uk/pay-and-contracts/pay/consultants-pay-scales/pay-scales-for-consultants-in-england

This is the current payscale. £99k after 5 years as a consultant, £105k after 10 years. Most people become consultants in their late 30s, so you’d hit £105k in your late 40s (I’ll be 49, due to maternity leave etc).

There is a new one due to be introduced and backdated to April, but it hasn’t been implemented yet.

This! It’s individual salary. I imagine if he is over £100k then he may be putting extra in his pension.

As others have said it’s £100k each not combined.

His pension may bring him under.

Or perhaps he is on more than £100k and they’re not getting the 30 hours but they think you’re on less money and so assume you will be entitled.

Hi, I'm wondering if someone can help. In a bit of a panic. My salary is £125k and I have always contributed to my SIPP to make sure my net adjusted income is less than £100k. I have already submitted my self assessment tax return for 2022/2023. I have just been advised by my employer that I have received a benefit in kind (private medical insurance) which takes my net adjusted income for 2022/2023 to over £100k for this tax year. I have now amended my self assessment tax return and notified childcare services but am I going to be asked to pay back the 20% and 30 free hours as with 2 children this is going to amount to well over £10k and simply can't afford this... Any help or experience with a similar situation would be greatly appreciated.

A consultant will be paying 14.5% minimum into their pension, without considering any additional pension contributions they might choose to make. That brings it down a fair whack.

@Sparky2023 id start your own thread in the money matters section.

There’s a minimum earning threshold for the 30 free hours but not a maximum.

https://www.gov.uk/30-hours-free-childcare

Sparky how much is the benefit in kind? Have you already deducted any charitable donations + 25%?

Please read your own link carefully before you post incorrectly 🙄 It blatantly says “If you or your partner have an expected ‘adjusted net income’ over £100,000 in the current tax year, you will not be eligible.”

@Sparky2023

Tax Free Childcare is worth £2k per child (if they are disabled it’s more). Everyone is entitled to 15 funded hours so it’s just the additional hours 15 which you’re not eligible for (works out as 11 hours per week over a full year).

My OH was required to repay the Tax Free Childcare once he had submitted his tax return. I don’t know what happens with the funded hours as I don’t know how they can attribute an amount to these.

Given the amount of money at stake I’d speak to an accountant and see if there’s anything more you can do to stay under the limit

Pension

Seriously consider increasing how much you put in your pension for a couple of year so you are eligible. Win win