How to Qualify for Child Benefit Through Salary Sacrifice
The double advantage: save on tax and unlock your child benefit
Are you over the child benefit salary threshold?
It is likely that you already know that once you earn more than £60,000 you become ineligible for child benefit — and that the benefit is clawed back on earnings between £60k and £80k. This is based on the earnings of the parent with the highest income.
So, if your earnings are in or around this range, and you are paying for nursery fees, there is a significant opportunity for you to gain a double advantage: reducing the Income Tax and National Insurance on your earnings, and reducing your salary so that you qualify for more — or all — of the child benefit.
Use our free calculator to see your own personal saving, and then factor in the child benefit you become eligible for.
Let's look at a real example
Let's say you earn £70,000 right now. At that salary you receive 50% of the child benefit available to you. Now let's also say that you pay the typical full-time nursery fees of £1,200 per month — that is £14,400 a year.
Our Workplace Nursery Scheme will save you £4,795 in tax and National Insurance. But because your salary is reduced through salary sacrifice, you will also qualify for the entire child benefit value — a further £1,406 per child.
So, depending on your salary and how many children you have — let's say the typical two children, with one of nursery age — you could receive £2,812 in child benefit, save £4,795 through our salary sacrifice scheme, and therefore be better off to the tune of £7,607.
Work out your own personal saving
Use our calculator to see exactly how much you could save through salary sacrifice, and then factor in the child benefit you become eligible for. Every family's situation is different, so the figures will vary — but for many parents on salaries between £60k and £80k, the combined saving is transformational.
If you would prefer to talk it through, our team is happy to help. Alternatively, your personal financial adviser will be able to confirm the exact details for your circumstances.
Quick summary:
- Earnings between £60k–£80k? Child benefit is tapered.
- Salary sacrifice reduces your taxable income — potentially below the taper threshold.
- On £70k with £1,200/month nursery fees: save £4,795 in tax & NI.
- Reduced salary restores eligibility for up to £1,406 per child in child benefit.
- Two children (one of nursery age): potential combined benefit of £7,607.
Ready to unlock your double advantage?
Use our free calculator to see your personal saving in seconds, or speak to our team and we will walk you through exactly how the scheme works for your situation.
Get in touch
Our team is ready to answer any questions you may have.