Financial planning for UK high earners raising young children — the childcare tax cliff, school fees, protection and inheritance planning.
Parents earning around £100,000+ where childcare support, child benefit and school fees collide with the tax system.
If either parent has adjusted net income over £100,000, the family loses tax-free childcare and funded childcare hours entirely — a cliff edge that can make a pay rise cost thousands. Pension contributions can bring income back under the line.
The high income child benefit charge phases out child benefit once the higher earner is above £60,000, disappearing entirely at £80,000. Even when fully clawed back, claiming (at £0) can protect a non-working parent’s State Pension credits.
Average UK private day fees are now well over £18,000 a year per child including VAT. The guide covers fee-planning timelines, investing through GIAs and ISAs, and grandparent funding structures.