Childcare / tax free childcare UK

Hi,

I’m a sahm and my 3 year old will be starting nursery in September. I’m planning to go back to work when he does. Not really got a career to go back to.
However, I won’t be eligible for 30hrs funded hours as my husband earns just over £100k. Only would be eligible for 15hrs which means I can’t really go back to work.

I’m getting really frustrated because I feel like we’re getting penalised for a parent earning £100k. Whereas 2 parents could earn £99k in a household and would be eligible for the 30hrs.

Anyway besides the point. I thought it would be good for me to go back to work and we could atleast get the tax free childcare which is 20% off childcare costs for him. And I could get a little bit of my independence back. However, I’ve just found out that if a parent earns over £100k then we won’t be eligible 😭
I was hopeful as the 20% off would really help and make it a little worthwhile for me to go back to work.

Does anyone have any advice? Or anyone been in the same position?

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In the same boat here. How much over the £100k threshold does your husband earn? Could he defer more into his pension? If so, then you would be eligible as long as he doesn't get any bonuses that tip him over the £100k mark again.

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So a few things, if he’s only a bit over 100k he can contribute more to pension (so loses less to tax then anyway I believe) - also to get funded hrs you need to be in work. There’s a few good accounts on IG that help, like nuggetsavings. If you search a few things some posts will come up. Can’t remember the qualifications for the 20% tax free childcare.
The other thing you could do is start your own business. Could maybe do that whilst looking for work? You qualify for funded hrs and tax free childcare immediately and don’t have to turn a profit in the first year.

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If he’s just over put it in a pension. The childcare savings could be greater than the pension deduction so worth it.

Also note it’s not a straight 20% off, as it’s capped at £2k a year. So if you’re fees are more than £1k a month it’s not just 20%

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My work also offers a salary sacrifice electric car scheme which can bring the salary down. Same as the pension. If that's an option for you guys.

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