Blincoe Financial Planning
The £100,000 cliff edge — how much is it costing you?
Earning over £100,000 triggers a 60% effective tax rate and wipes out your childcare entitlement. This calculator shows what pension contributions could save you — in tax, and in childcare costs.
Parent 1 income
Parent 2 income
Children
Childcare costs
Total employment income after salary sacrifice pension contributions.
£
Rental income, dividends, savings interest, pension income — anything not from employment.
£
Over the £100,000 threshold. Parent 1's adjusted net income is above £100,000. You may be losing access to 30 hours' free childcare and paying an effective 60% marginal tax rate.
Parent 1 — pension contributions
Relief at source: enter the net amount you pay. Salary sacrifice: already reflected in your salary figure above, so enter 0.
£
Net amount you would pay in. We gross it up at 20% basic rate relief.
£
Total employment income after salary sacrifice pension contributions.
£
Rental income, dividends, savings interest, pension income — anything not from employment.
£
Over the £100,000 threshold. Parent 2's adjusted net income is above £100,000. You may be losing access to 30 hours' free childcare and paying an effective 60% marginal tax rate.
Parent 2 — pension contributions
Relief at source: enter the net amount you pay. Salary sacrifice: already reflected in your salary figure above, so enter 0.
£
Net amount you would pay in. We gross it up at 20% basic rate relief.
£
Your current provider rate per child per hour.
£
The scheme covers up to 30 hours per week for 38 term-time weeks per year.
Your estimated savings
Total annual benefit
£0
—
return on
contributions
contributions
Tax saving
£0
30 hours free childcare
£0
Tax-Free Childcare
£0
How we calculated this
Important: These figures are illustrative estimates based on 2026/27 tax year rates and the information you've entered. The pension contribution figures shown are not a recommendation — the right amount depends on your full financial picture, pension allowances, and personal circumstances. This calculator does not constitute financial advice. Always speak to a qualified financial adviser before making decisions.
Talk to Blincoe
You might be leaving money on the table.
Getting below £100,000 can save far more than the pension contribution costs you. A conversation with us takes an hour. The planning lasts years.
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