Martin Lewis gives advice on using tax-free childcare system
High earners are being advised to take advantage of a pension hack that could save them thousands on childcare costs and boost their retirement income.
Individuals earning more than £100,000 are denied most elements of free childcare and tax savings on childcare costs.
However, finance experts say that these high earners can combat this by bringing down their income below the £100,000 cliff edge by making contributions to their private or workplace pension.
Experts at Moneyfarm said the eligibility for receiving free and tax-free childcare is limited to households where an individual earns at least £8,670 and no more than £100,000.
This means that a two-income household where both parents earn £99,000 can apply, but a household where one parent earns £100,001cannot and has to pay full price for childcare.
Individuals earning more than £100,000 also lose their personal tax allowance (Image: Getty)
Separately, individuals…
