£100k Childcare & Tax Trap Calculator
Earning over £100k? You could lose your childcare benefits and pay 60% tax
Why £100k is the magic number for parents
If either parent's adjusted net income exceeds £100,000, your entire household loses access to Tax-Free Childcare (worth up to £2,000/year per child) and 30 hours free childcare. For a family with two young children, that's potentially £10,000+ per year in lost benefits.
On top of that, you lose £1 of your £12,570 personal allowance for every £2 over £100,000, creating an effective 60% marginal tax rate between £100,000 and £125,140.
The fix? Pension contributions (especially via salary sacrifice) can bring your adjusted income below £100,000 — restoring your childcare benefits, recovering your personal allowance, and saving you thousands in tax.
Max % your employer will match. Leave at 0 if unsure.