top | item 45634235

(no title)

StackRanker3000 | 4 months ago

Yes, it’s similar in the UK.

If you make over £100k, you lose your personal tax-free allowance. That means that your effective tax rate from £100k-£125,140 is 60%

That doesn’t in itself make you worse off than people making less than you, but when one parent makes over £100k, that’s the cut-off for receiving 30 hours of free childcare, as well as additional tax-free childcare up to £2000

So if you have small children with childcare needs, you can suddenly be worse off as soon as you or your partner hit £100k

One way to avoid both of these is to pay the additional money into your pension instead

discuss

order

No comments yet.