100k childcare threshold experiences?

[plantmum]

We’re in the situation where my partner is set to earn around 100k (self employed) next year and I’ll earn 18k (employed).

We’re desperate to hold on to tax free childcare and 30 hours for our kids (I’ll have to leave work if we can’t). Partner’s income will fluctuate, no regular payments. The website says take an average over the year but also talks about what you expect to earn in the next three months. What happens if he expects to earn under 25k per 3 months but ends up a bit over at some point and it tips over 100k for the year?

Please can you comment if you are in this situation! What do you do to make sure you keep under 100k? Has anyone ever had to pay money back?

I'm not sure about the three months thing but given they won't know til you fill in your tax return I think it's realistically averaged over a year.

Remember that it's taxable income and pension contributions are not taxed. My husband earns just over the limit so we chuck a few extra grand into his pension to make sure he stays under. It's worth it for the amount he'd loose. Plus builds up his rather paltry pension too.

Does he have an accountant? It's a question for them. My husband only takes 50k total in dividends and salary, the rest is all emergency pay if not in work, some business investments, pension (he has a lot of making up to do for early career), and expenses.

• Edited to add assuming he works through a limited company, I don't know how it works if you're a sole trader