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  • FIRST POST
    • AMO
    • By AMO 30th Dec 17, 10:41 PM
    • 1,442Posts
    • 373Thanks
    AMO
    Staying under £100K to keep 15/30 hours free childcare
    • #1
    • 30th Dec 17, 10:41 PM
    Staying under £100K to keep 15/30 hours free childcare 30th Dec 17 at 10:41 PM
    Hi there,

    I've just taken on a London job to take on a higher paid job to support the family. It's a good job paying £80K plus £5500 car allowance plus private medical plus up to 30% bonus plus pension.

    The company does not do childcare vouchers.

    What are my options if I want to keep my gross salary under £100K so that I can still apply for 30 hours free childcare. Is it mainly trying to increase pension contributions either ongoing (e.g. 10-15%) or try and get some mechanism so that when the bonus pays out, it will divert everything that would make my gross wage go above £100K go into my pension?

    Is it worth taking the company car? I do only private miles to get to work (about 120 miles per day - the rest by train). Not sure if this will pay off.

    Essentially, my travel costs and accommodation out of my net wage is likely to be about £1000-£1200 per month (knocking out the top £15-20K gross or so of my wage).

    If I lose free childcare due to a high gross wage, I'll probably have to consider giving up the job as its all going in taxes, losing benefits and paying with net wages on transport and accommodation costs.

    Any advice greatly appreciated, thanks.
Page 3
    • Tabbytabitha
    • By Tabbytabitha 2nd Jan 18, 9:25 AM
    • 2,637 Posts
    • 4,363 Thanks
    Tabbytabitha
    Perhaps unfair but no different to tax credit rules so not really anything new.
    Originally posted by Darksparkle
    What have tax credits got to do with it - they're not affected by capital, apart from interest on it..
    • Alice Holt
    • By Alice Holt 2nd Jan 18, 6:13 PM
    • 2,160 Posts
    • 2,530 Thanks
    Alice Holt
    What have tax credits got to do with it - they're not affected by capital, apart from interest on it..
    Originally posted by Tabbytabitha
    By making sizeable pension contributions from gross salary It's possible to increase WTC payments.
    See this post as an example: http://forums.moneysavingexpert.com/showthread.php?p=72599360

    As darksparkle notes, this tactic is very similar to the OP's scheme of reducing his taxable income by making additional sizeable pension contributions.

    Have a read of this:
    https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/what-is-income/calculating-tax-credits-income/
    "The gross amount of pension contributions to an approved pension scheme and of authorised Gift Aid payments should be deducted from the gross income figure."
    - and you hopefully might be able to understand the point made.
    • AMO
    • By AMO 3rd Jan 18, 12:10 AM
    • 1,442 Posts
    • 373 Thanks
    AMO
    Ok.....
    I think I may have ruffled a few feathers here. Everyone is entitled to their opinion and those that have a negative view often don't realise the tax burden and the personal sacrifice choices one has to make for some of these decisions or how the tax structure works such that you can get squeezed out of benefits whilst being taxed to the hilt whilst sacrificing personal time and money on transport to earn that little bit extra.

    Essentially, I have a family member in a care home costing £1000 / week and don't get government help due to owning their own house. To help out (and a lot of that burden falls on me) I need a better paid job whilst supporting my own family and mortgage and daughter at nursery.

    To do so, London-based jobs paid an extra £25K or so more. However, travel costs would easily take the top £15K gross. If I lost 30 hours free childcare (£800 net per month), there would be little point going for the job - I'd be better off staying with my existing job which is 30 minutes away instead of one 2.5 hrs away.
    • AMO
    • By AMO 3rd Jan 18, 12:15 AM
    • 1,442 Posts
    • 373 Thanks
    AMO
    What an absolute cheek! You earn £100k a year, why should I pay for your childcare?
    Originally posted by Unimaginativeusername
    You probably don't.

    Those earning less than £27K are takers in society. That value increases, the more kids you have. I imagine you fall under this category.
    • Mojisola
    • By Mojisola 3rd Jan 18, 10:02 AM
    • 29,392 Posts
    • 75,044 Thanks
    Mojisola
    Essentially, I have a family member in a care home costing £1000 / week and don't get government help due to owning their own house. To help out (and a lot of that burden falls on me)
    Originally posted by AMO
    Why isn't the family member in care using their own capital to fund themselves?
    • t0rt0ise
    • By t0rt0ise 3rd Jan 18, 10:34 AM
    • 3,020 Posts
    • 1,891 Thanks
    t0rt0ise
    To do so, London-based jobs paid an extra £25K or so more. However, travel costs would easily take the top £15K gross. If I lost 30 hours free childcare (£800 net per month), there would be little point going for the job - I'd be better off staying with my existing job which is 30 minutes away instead of one 2.5 hrs away.
    Originally posted by AMO
    Thatís a bit like someone on the dole saying that they canít take a job because theyíll be worse off. See what reaction that sort of post gets here.

    My argument is not really with you itís with the posters here who have blatant double standards.
    • TELLIT01
    • By TELLIT01 3rd Jan 18, 12:07 PM
    • 5,024 Posts
    • 5,456 Thanks
    TELLIT01
    Why isn't the family member in care using their own capital to fund themselves?
    Originally posted by Mojisola
    Quite possibly because such capital as they have is tied up in the property. Even if the property is put up for sale it can take many months for a sale to complete.
    • Mojisola
    • By Mojisola 3rd Jan 18, 12:12 PM
    • 29,392 Posts
    • 75,044 Thanks
    Mojisola
    Quite possibly because such capital as they have is tied up in the property. Even if the property is put up for sale it can take many months for a sale to complete.
    Originally posted by TELLIT01
    In that case, the council will arrange a deferred payment scheme - the debt is paid back when the house is sold.
    • AMO
    • By AMO 5th Jan 18, 10:45 PM
    • 1,442 Posts
    • 373 Thanks
    AMO
    In that case, the council will arrange a deferred payment scheme - the debt is paid back when the house is sold.
    Originally posted by Mojisola
    These things take time and my mum still lives in the property. People get ill first and paperwork and assessment takes time to go through the process.

    It doesn't change the fact that money is required to pay care bills.

    It also doesn't change the fact that if you can foresee a possible financial problem situation in the future, it can be beneficial to take the opportunity to take on a better paid job now when the opportunity is there then get stressed later and do it on a knee jerk reaction.

    Nevertheless, what I pay for to assist my family doesn't change the fact that tax and benefits can start to be detrimental as you reach certain bands where you enter a new tax bracket and lose benefit at the same time. This, coupled with middle-class professionals usually having to travel further afield to the larger cities to get work incurring higher costs. The squeezed middle concept does not occur to those receiving many benefits whilst their job is down the road. They have no idea and make no effort to calculate how much harder it is to earn that extra pound.

    Anyway, thanks for all that have replied.
    • venison
    • By venison 5th Jan 18, 10:53 PM
    • 2,176 Posts
    • 2,325 Thanks
    venison
    I don't wish to appear to be too heavy handed as a board guide, however in a nice way may I remind everyone that the benefits forum is here to help people through the maze that is the benefits jungle and not to pass judgement or debate the rights and wrongs of the system.
    I hope you are all having a very nice new year so far despite the weather x

    http://forums.moneysavingexpert.com/showthread.php?t=365935
    Ex Board Guide
    • Takeaway_Addict
    • By Takeaway_Addict 6th Jan 18, 11:30 AM
    • 5,818 Posts
    • 6,712 Thanks
    Takeaway_Addict
    I don't wish to appear to be too heavy handed as a board guide, however in a nice way may I remind everyone that the benefits forum is here to help people through the maze that is the benefits jungle and not to pass judgement or debate the rights and wrongs of the system.
    I hope you are all having a very nice new year so far despite the weather x

    http://forums.moneysavingexpert.com/showthread.php?t=365935
    Originally posted by venison
    Quite right, the site is for moneysaving and getting best value, whether you earn £10k or £100k. So what if the OP earns £100k, should they not legally maximise their earning potential?
    Don't trust a forum for advice. Get proper paid advice. Any advice given should always be checked
    • TELLIT01
    • By TELLIT01 6th Jan 18, 11:42 AM
    • 5,024 Posts
    • 5,456 Thanks
    TELLIT01
    In that case, the council will arrange a deferred payment scheme - the debt is paid back when the house is sold.
    Originally posted by Mojisola
    It's not always that simple. A friend's mother went into care and the local council changed all the locks on the property and refused to allow the daughter access. This despite the fact that many of the daughter's possessions were stored at the house. That may help to explain why the previous poster is paying the fees for care.
    • Mojisola
    • By Mojisola 6th Jan 18, 1:09 PM
    • 29,392 Posts
    • 75,044 Thanks
    Mojisola
    These things take time and my mum still lives in the property.

    It doesn't change the fact that money is required to pay care bills.
    Originally posted by AMO
    As your mother is still living in the house, its value shouldn't be part of the financial assessment.
    • TELLIT01
    • By TELLIT01 6th Jan 18, 2:56 PM
    • 5,024 Posts
    • 5,456 Thanks
    TELLIT01
    I don't wish to appear to be too heavy handed as a board guide, however in a nice way may I remind everyone that the benefits forum is here to help people through the maze that is the benefits jungle and not to pass judgement or debate the rights and wrongs of the system.
    I hope you are all having a very nice new year so far despite the weather x

    http://forums.moneysavingexpert.com/showthread.php?t=365935
    Originally posted by venison
    Totally agree. The number of times I read an initial post in a thread and can almost guarantee the names of the 'contributors' who will be passing judgement, or demanding answers to irrelevant questions, rather than answering the question.
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