Paid Childcare on over £100k

[BebeBelle]

Hi all, I don’t normally post on here but only looking for advice on people who have helpful comments and have been in this situation. My baby is 9 months and started going to the child minders when I went back to work part time. We’ve been paying childcare ourselves and childminder has said we are eligible for the code. My husband earns about £130k before tax including benefits. I’ve gone back to work part time 3 days a week and will be earning about £1.3k a month (had to take a low paying and less demanding job) which will almost mainly be for childcare.
I’m not looking for people to tell me that this is a lot… because for us it isn’t after the very high tax bills etc, so I just want to find out if there is a way we can get child care support. We have no family near by and do everything ourselves and if we have any emergencies we have to pay for baby sitters etc. my husband works away, long hours, pays travel and accommodation so our monthly bills are quite high at the moment as he is in a niche industry and can only work in places where we can’t move to for now. Can anyone with advice please help on getting childcare help please let me know the best way to go about it. Many thanks in advance.

He could go part time which would reduce his salary and allow him to spend time with your child.

Taking some unpaid parental leave (which is a statutory right) would reduce his earnings and give him more time off with your child. You’d still likely need to combine with increased pension contributions though.

Doesn't include employers contribution. Not sure about other voluntary deductions, perhaps check on .gov?

The other way is to be paid in dividends ... lawyers, accountants, dentists do this. Know a dentist getting free child care and his wife doesn't work!

Can your husband go part time and have child for a day?

Dividends count as taxable income (and you have to be a shareholder to get dividends).

Thanks @BirthdayTrash and @Unexpectedlysinglemum- unfortunately him going part time isn’t an option for him at the moment due to the nature of his role. But something to think about in the future I guess.

Thanks @FlickaFlacka, definitely something for us to think about.

@ByQuaintAzureWasp thanks for getting back to me. Interesting about the dividends. He is PAYE at the moment but thanks I’m sure the information will also help others.

And yet a couple can earn 99k EACH and still the household is eligble for taxfree childcare and 30 funded hours.

And? Only 5% of people earn over £100k, your point doesn't make £130k any less. Honestly, it must be possible to economise if you earn this kind of money.

OPs husband is ‘the taxpayer’. It not really a lot to ask to get a few years help with childcare when you’re paying so much in tax.

Are you going around telling all the couples who earn 75k each that they don't deserve childcare hours from the "taxpayer" as well?

Why add to a thread asking for practical advice just to be goady? OP hasn't asked whether she should get childcare.

You have a very kind employer.

@TheSmallAssassin There is a huge difference between a household income of 198k and a household income of 130k. I'll save you the effort and do the maths for you - 68k difference. One is eligible for support with childcare, the other is not!

But you are right, it is possible to economise if you earn this sort of money. One way to do this is through things like salary sacrifice, having an EV car on salary sacrifice, paying for EV charge card via salary sacrifice, turning down promotions, bonuses and payrises, gift aid, cutting their hours, taking dividends - these all help to economise and get adjusted net income below the threshold for taxfree childcare and funded hours, while still continuing to meet their tax obligations and meet their higher bills (because to earn those sort of figures comes with a lot of responsibility, pressure, and higher household bills).

Dividends count as taxed income……..they aren’t netted out.

Good point, thank you!