Viewing breakdown for:
Adjusted Net Income
£110,800
Tax Code
717L
Expected · PA £7,170
Annual Net Pay
£71,877
£5,990/mo
Income Tax
£33,912
Marginal: 60%
NI
£4,211
Total Pension
£0
AE: £0
Disposable
£50,277
Net + Investments – Nursery + CB
📋 HMRC Tax Rules — 2025/26
UK rates · Click to expand
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🎯 100k Tax Trap Decision
Should you sacrifice £10,800/yr extra pension to unlock benefits?
📅 STRATEGY STARTS:12 mo left in 2025/26
📋 HOW TO SACRIFICE THE EXTRA £10,800/yr
Current Sacrifice
0.0%
£0/mo
New Sacrifice %
10.8%
£900/mo
Increase
+10.8%
+£900/mo
Tell HR/payroll to increase your additional pension sacrifice by £900/mo (total pension: 0.0% → 10.8% of gross). Each monthly payslip will show £900 more deducted.
❌ CURRENT✅ OPTIMISED
🎯 OPTIMISED — SPREAD MONTHLY
Extra Pension (monthly)—£10,800/yr
Adjusted Net Income£110,800£100,000
Personal Allowance£7,170£12,570
Income Tax£33,912£27,432
National Insurance£4,211£3,995
Annual Take-Home£71,877£67,773
30 Hrs Eligible?❌ No✅ Yes
Tax-Free Childcare❌ None✅ £2,000/yr
Annual Nursery Bill (15h → 30h+TFC)£21,600£19,600
Child Benefit (net)£0£0
CURRENT
Disposable Income
£50,277
£71,877 net – £21,600 nursery
OPTIMISED
Disposable Income
£48,173
£67,773 net – £19,600 nursery
⚠️ Competing Interests
If you need disposable money for short-term or mid-term projects:
Don't sacrifice. You keep £2,104/yr more disposable income that you can flexibly use.
If you don't need the money:
Sacrifice for long-term pension wealth. Trading £2,104/yr in disposable income gives you £10,800/yr into your pension — instant ROI of 513% that compounds significantly over decades.
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Sacrifice vs Pay Analysis
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📅 Monthly Breakdown
Net/mo
£5,990
Tax/yr
-£33,912
NI/yr
-£4,211
Click to expand month-by-month table
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👶 Childcare & Child Benefit
Funded hrs: NOT ELIGIBLECB gross: £1,359/yrHICBC: -£1,359Net CB: £0/yr
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30HRS & Tax-Free Childcare
NOT ELIGIBLE
Max TFC per year
£2,000
30 hrs/wk for working families where both parents earn £8,670–£100,000 ANI. Tax-Free Childcare gives a 20% government top-up (max £2,000/child/yr) on nursery costs via your TFC account.
❌ Not eligible — ANI £110,800 exceeds the £100,000 limit. Reduce via pension sacrifice.
Child Benefit & HICBC
Gross benefit£1,359/yr
HICBC clawback (100%)-£1,359
£1,359/yr for the eldest child, £897/yr for each additional. The High Income Child Benefit Charge (HICBC) claws it back 1% per £200 once the higher earner's ANI exceeds £60,000 — fully gone by £80,000.
❌ Fully clawed back — ANI £110,800 wipes out all benefit. Net: £0. Reduce ANI below £60,000 to recover it.
👨‍👩‍👧 Partner & Household Scenarios
Which working arrangement maximises household take-home?
Partner not working
Partner gross: £0
Partner net: £0
30hrs eligible: ❌ No
⚠️ No 30hrs eligibility (partner not working)
Childcare cost: £0-£21,600
Your disposable: £71,877
Household total: £71,877
Partner part-time (60%)
Partner gross: £30,000
Partner net: £25,120
30hrs eligible: ❌ No
⚠️ You're over £100,000 — not eligible
Childcare cost: £12,960-£8,640
Your disposable: £58,917
Household total: £84,037
BEST
Partner full-time
Partner gross: £50,000
Partner net: £39,520
30hrs eligible: ❌ No
⚠️ You're over £100,000 — not eligible
Childcare cost: £21,600
Your disposable: £50,277
Household total: £89,797
Partner not working + You sacrifice(-£10,800)
Partner gross: £0
Partner net: £0
30hrs eligible: ✅ Yes
Childcare cost: £0-£19,600
Your disposable: £67,773
Household total: £67,773
Partner part-time (60%) + You sacrifice(-£10,800)
Partner gross: £30,000
Partner net: £25,120
30hrs eligible: ✅ Yes
Childcare cost: £11,760-£7,840
Your disposable: £56,013
Household total: £81,133
Partner full-time + You sacrifice(-£10,800)
Partner gross: £50,000
Partner net: £39,520
30hrs eligible: ✅ Yes
Childcare cost: £19,600
Your disposable: £48,173
Household total: £87,693
Key insights:
• Part-time vs full-time partner: +£5,760/yr household difference
• Your sacrifice benefit: -£0/yr vs full-time partner (no sacrifice)
• 🎯 Best scenario: Partner full-time → £89,797/yr household total
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Partner & Household Scenarios
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🏦 Key Pension Rules
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Your pension contributions are governed by two separate tests: the Annual Allowance (AA) limits the amount you can contribute, while Adjusted Net Income (ANI) affects your eligibility for childcare, tax-free childcare, and personal allowance.
⚠️ Important: AA and ANI are different tests
Annual Allowance (£60,000)
Counts ALL contributions:
✅ Your salary sacrifice
✅ Employer contributions
✅ SIPP (grossed up)
Adjusted Net Income
Only YOUR contributions reduce it:
✅ Salary sacrifice
❌ Employer contributions
✅ SIPP (grossed up)
Annual Allowance Used£0 / £60,000
✅ Within Annual Allowance — remaining headroom: £60,000
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Pension Allowance Tracking & Strategy
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