Dreaded email saying Tax Free Childcare is stopping

[Cliffordthbigreddog]

Hiya,

Earlier today I received the dreaded email to say our tax free childcare (£2000 a year/£500 a quarter) is stopping as my partner's income will exceed £100k this year.

Whilst this is correct, does anyone know if I can reapply in the new tax year (after 5th April 2026), if my partners salary is expected to be significantly less than 100k (due to higher pension contributions and much lower bonus)?

Thanks

You have until 5th April to make more pension contributions for this tax year - provided you haven’t already maxed out.

I think the point is that 2 earners on £50k each would have more net income than 1 earner on 100k, yet would still be entitled to child benefit / tax free childcare.

The whole policy around this makes no sense.

I’m a full time student for an NHS medical role and I can’t get any tax free childcare or any contributions to it at all even when working for free for the NHS at placement (I don’t think I should be paid but I do think I should have access to childcare subsidy).

So I agree it should be looked at again.

So, net contributors should never ever be entitled to anything?

Yes this is exactly what I meant. £600 a month more and also subsidised childcare, child benefit etc. And dare I mention the £100k to £125k bracket where you lose your personal allowance so end up with even less!

That's because you aren't paying any tax.

The OP isn't getting a subsidy, she's being let off some of the tax she's paying. A teeny, tiny recognition of the fact she needs that childcare in order to work and pay tax.

No but my husband is paying tax… and he can’t get tax free childcare or subsidy either because I’m not working because I’m doing placements / study.

Im aware that was my choice but people on benefits get subsidised childcare, people working get subsidised childcare but the people with one/no income, who can’t work because placement is full time and who cannot claim benefits can’t get a penny towards childcare… seems barmy to me.

Well if it makes you feel better they’ll be paying a lot more tax than you are on your 22 hours, if you’re so pious maybe you should work full time so you pay a more productive amount of tax?

The penalty of being excluded from the free childcare is huge now.

At my nursery you lose close to £15,000 in tax free childcare and free hours for earning >£100k. Thats £135k pre tax.

So you need to earn an extra £35k over £100k to… break even with earning £99k and claiming the childcare help.

Insane penalty.

Fair enough. I'd expect that your placement should be taken into account for your DH to be able to get tax-free childcare from his earnings. That does suck.

Better to fix it so that people who are wrongly excluded don't miss out instead of saying that someone who is paying tax shouldn't get it.

It really, really pisses me off when supposedly universal benefits are means tested. Those people who fund government spending should get to benefit from it. Otherwise it's just theft.

So, just to clarify you believe that you are more deserving than a net contributor? Is that what you think needs to be ‘looked at again’. What benefits to a net contributor do you think are reasonable?

Plus the loss of the personal allowance. Answer is pension contributions. It’s a no brainer if you can afford as the effective tax rate is insane.

You’re silly not to claim tax free childcare it’s only a 20% discount so all if means is that you’re not paying tax on the income that’s going towards some of your nursery fees.
Hugh earners will be paying more tax so it’s not even tax free for them, just that the tax is reduced slightly.

100k is only 5k a month after taxes as they’re taxed so much , less after pension and student loans, if two children are in full time nursery in London that’s 4k a month without any free hours - how will they pay rent and food and bills on top of that? 100k doenst go far in London when you have you get kids. It’s not ‘rich’