In our weekly series, readers can email any questions about their finances to be answered by our expert, Rosie Hooper. Rosie is a chartered financial planner at Quilter Cheviot and has worked in financial services for 25 years. If you have a question for her, email us at money@inews.co.uk.
Question: My salary has just gone above £100,000 and friends keep telling me I’ve fallen into a tax trap. My husband earns around £30,000 and we have two children aged one and three, both in nursery.
I was delighted by the promotion, but I’ve since discovered that crossing the £100,000 mark could affect both my tax bill and the childcare support we receive. My employer offers salary sacrifice into a pension and I’ve been told I could use this to bring my income back below the threshold. But we’re already paying huge nursery fees even with the funded hours and trying to save for a bigger home. Should I be doing everything possible to stay under £100,000, or am I overthinking it?
Shorts
Answer: Congratulations on the promotion. The good news is that salary alone is not what matters.
