£100k childcare cliff calculator: what crossing £100k costs you
If either parent's adjusted net income is expected to be over £100,000, the household loses Tax-Free Childcare and the working-parent funded hours. With one child under 3 that is £10,550 a year (£2,000 of Tax-Free Childcare plus £8,550 of funded hours at £7.50 an hour). On £105,000, £5,000 of salary sacrifice (£417 a month) keeps it.
Your household
Results update as you type. One earner; England, Wales or Northern Ireland rules, 2026-27.
Your result
Childcare support lost
£10,550a year
Adjusted net income is £5,000 over £100,000. Sacrifice £5,000 (£417 a month) to model potential support at the income limit; other eligibility conditions still apply.
- Tax-Free Childcare
- £2,000a year
Up to £2,000 a child.
- Funded hours at risk
- £8,550a year
Up to 30 hours, less universal hours retained; 38 weeks at £7.50 an hour.
- Sacrifice to get it back
- £5,000a year
£417 a month; take-home −£1,900.
What you keep if you sacrifice £5,000
- Take-home change
- −£1,900
- Tax and NI saved
- +£3,100
- Childcare regained
- +£10,550
- Pension gained
- +£5,000
- Better off overall
- +£13,650
Show the working
| Line | Now | After |
|---|---|---|
Gross pay Salary plus bonus for the tax year. | £105,000 | £105,000 |
Adjusted net income (ANI) The figure HMRC uses for the £100k tests: taxable income after pension contributions and Gift Aid. GOV.UK | £105,000 | £100,000 |
Personal allowance Reduced by £1 for every £2 of ANI over £100,000. GOV.UK | £10,070 | £12,570 |
Income tax 20% / 40% / 45% on income above your personal allowance. GOV.UK | −£30,432 | −£27,432 |
National Insurance 8% between £12,570 and £50,270, then 2%. GOV.UK | −£4,111 | −£4,011 |
Take-home pay What lands in the bank from pay. | £70,457 | £68,557 |
Child Benefit Paid for each child you claim for. GOV.UK | £1,407 | £1,407 |
Child Benefit charge (HICBC) 1% of Child Benefit for every £200 of ANI over £60,000. GOV.UK | −£1,407 | −£1,407 |
Tax-Free Childcare Lost: ANI is over £100,000. GOV.UK | £0 | £2,000 |
Funded childcare hours (value) Working-parent hours excluded above £100,000; universal hours for the children selected are retained. GOV.UK | £0 | £8,550 |
Tax year 2026-27. How we calculate. Guidance, not financial advice.
England childcare estimate: assumes all other eligibility conditions are met, including your partner’s income and both parents’ minimum earnings. Full Tax-Free Childcare needs £10,000 of eligible bills per child per year after funded hours, spread to use the £500 quarterly top-up. Funded hours are valued at £7.50 per hour. Universal 15 hours for the children selected remain above £100k and are excluded from the value at risk. Term dates, grace periods and disability enhancements are not modelled. Childcare assumptions. Pension contribution limits are not checked.
Tax-Free Childcare and the funded-hours code are reconfirmed every three months on expected income; this uses the annual figure.
£105,000 salary, no pension, one child under 5. Adjusted net income £105,000.
Take the £5,000 plan with you.
One email with your numbers: the £5,000 a year, the £417 a month, the working line by line, and what to ask payroll for.
Worked example: £105,000, one child
Computed from the 2026-27 rules when this page was built. Change the household above for your own.
Childcare example: England, children aged 9 months to 2, a full year of eligible support and enough paid childcare to use the maximum top-up. Universal hours for older children reduce the amount at risk.
- 1Salary £105,000, adjusted net income £105,000: £5,000 over the £100,000 limit, so childcare support is lost.
- 2At stake: £2,000 of Tax-Free Childcare (up to £2,000 a child) plus £8,550 of funded hours (30 hours a week, 38 weeks, valued at £7.50 an hour).
- 3Sacrifice £5,000 (£417 a month): take-home falls by £1,900, £10,550 of childcare support comes back, and £5,000 is in the pension. £13,650 better off overall.
How it works
- Tax-Free Childcare pays 20p for every 80p you put in, up to £2,000 a child a year, and is lost if either parent expects adjusted net income over £100,000. gov.uk/tax-free-childcare
- Working-parent funded hours (30 hours a week in term time from 9 months) use the same income test. gov.uk/free-childcare-if-working
- The funded hours are valued at £7.50 an hour here; what they're worth to you depends on your nursery's fees and hours. gov.uk/free-childcare-if-working
- Pension contributions reduce adjusted net income, which is why sacrifice can keep the support. gov.uk/guidance/adjusted-net-income
Questions people ask
Is it a cliff or a taper?
Is the test my salary or my adjusted net income?
When is the test applied?
What about children over 5, or under 9 months?
Where next
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Change the household above to match your payslip. The working updates as you type, the page keeps your numbers in this browser tab.