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by StackRanker3000
245 days ago
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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 |
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