Government funded childcare & £100k+ salary

mither_2

Hi All,

I have two nursery school age children. The nuresty that I go to has sugested that i should apply for the 15 hours a week free funding. This would be very helpful but i earn over £100k a year and so I think that I am automatically ineligible. Hopefully I'm wrong but I don't think I am. I don't think there is any tapering or any grey areas. Either we get the full 15 hours or we don't.

I can get around this by putting more into my pension and reducing my salary but the maximum that I can put in is £60k tax free. Above this if I put any more in to get I would be charged 40% - 45% tax. I'd be getting charged this rate anyway if I took the money out as salary. The difference is that I can then use the funds how I wish but if I put into my pension I can't access the funds until I'm 58 and if I were to die before then the value would be subject to inheritance tax.

Other than putting more and more in my pension or giving money away via gift aid I'm not aware of any way to get to below £100k. Other than pensiosn contributions or giving money away are there any other options available to me?

Yes, I'm aware that this is a good salary but living in London with two young chidren and my wife having a very low income we aren't rich and so this money would be very handy.

Thanks

Yamor

All children aged 3 and 4 have an entitlement to 15 hours of free childcare. There is no need to even make an application for this.

But yes, to get the 30 free hours for children aged 9 months and older, you would need to expect to have an adjusted net income of no more than £100k in the current tax year.

mither_2

Thanks. This is interesting. I thought it was all means tested? So what you're saying is that all 3 years get 15 hours regardless of parents invome and this isn't means tested?

Yamor

No, the 15 hours for 3-4 year olds is free regardless of whether the parents are employed or not.

mither_2

https://forums.moneysavingexpert.com/discussion/comment/81979739#Comment_81979739

Thank you very much. I'll submit my forms today.