I'm spending a happy Mother's Day trying to figure out our childcare options. Goodness knows why I thought this was a good idea!
This tax year (17/18), DH's taxable income will be around the £100k mark. Could be up to £1,000 under or £1,000 over.
In 2018/19 (so the tax year in which we hope to start getting 30 free hours for DD1 and will have to make a decision on vouchers v tax free childcare), we can increase DH's pension contributions to hopefully keep below £100k.
The challenge is that his bonus could be anywhere between nothing and £24k, dependant mostly on company performance. This year it is likely to be £6k (the biggest ever). It's paid at the end of this month.
We're thinking of offsetting a potential £12k bonus with increased pension contributions. It will impact on our disposable income, but getting the extra 15 hours free for DD1 will go some way to balancing that out.
What happens though, if we claim 30 hours free (and potentially tax fee childcare) and then he gets an unexpectedly large bonus?
We can't afford to offset the whole £24k.