Earning £120k and Claiming Free Childcare - Tax Efficient or Immoral?

Описание: I earn around £125k and have recently reduced my adjusted net income through a combination of increasing my pension contributions and taking unpaid (parental) leave. This has allowed me to reduce my income to around £99,500 and this has a few benefits:

1. I no longer pay 60% tax as a result of being caught in the tax trap that exists between £100,000 and £125,140.
2. I am now eligble to apply for tax-free childcare, worth £2k per year
3. I am now eligble to claim 30 free hours which is potentially worth £300 per month (or £3.6k per year).

A lot of people agreed it was the right thing to do (mainly other high earners), but an equal amount (possibly more) thought I was gaming the system and it was immoral... what do you think???

Check if you're eligible: https://www.gov.uk/free-childcare-if-...
Adjust Net Income Info: https://www.gov.uk/guidance/adjusted-...

#personalfinance #taxfreechildcare #taxefficiency