Earning £100,000 brings a tax and childcare-subsidy cliff edge, financial planner warns

Summary

Earning £100,000 a year can carry a hidden cost, particularly for people with small children. The tax-free personal allowance starts to be taken away once income reaches six figures, and in England households lose access to childcare subsidies. Sean McCann, a chartered financial planner at NFU Mutual, says reaching £100,000 is an ambition for many people but comes with an unexpected sting in the tail.

Timeline

1. The Guardian

   25 Oct 2026, 12:00 UTCSource ↗

   The Guardian reports that the tax-free personal allowance is withdrawn once income reaches £100,000, and that in England earners lose access to childcare subsidies, quoting NFU Mutual financial planner Sean McCann on the unexpected cost.