Power2Play
High earners lose childcare support. Power2Play makes quality care affordable again.
We’re looking to speak with a small number of high-earning professional parents of young children for a short, confidential research call to explore a new way to fund child support. We’ll donate £25 to a UK children’s
charity as a thank-you.
Find out more...
Why Sacrificing to a Pension Isn’t Always the Best Answer to the £100k Tax Trap
Sam Brodbeck’s recent Telegraph piece lays bare one of the most damaging quirks in the UK tax
system: the £100k cliff edge. Earn just a pound over, and you not only face an effective 60% tax rate
on the additional income due to the withdrawal of your personal allowance, but you also lose access to
tax-free childcare and the 30 hours scheme. For families, that can mean thousands of pounds of extra
costs each year…
High Earner
You earned it. Your child deserves it.
A smarter route to childcare funding for high-earning parents.
High-performing professionals earning over £100,000 lose access to government childcare support just when they need it most. We are here to rebalance that.
Power2Play is a trust-based salary sacrifice solution
that allows these parents to fund high-quality nursery
care using pre-taxed income – ethically, efficiently, and
without stress.
Secure exceptional nursery care without compromise. Power2Play converts lost allowances into the highest quality support for your child’s growth.
Help pioneer this ground-breaking model. Your insight will guide a service designed for discerning parents who demand better value.
Help us Shape a Smarter Way
Share your perspective in a brief, confidential
conversation shaping the future of childcare
funding. As thanks, we’ll gift £25 to a UK
children’s charity
Thank you.
Why Sacrificing to a Pension Isn’t Always the Best Answer to the £100k Tax Trap
Sam Brodbeck’s recent Telegraph piece lays bare one of the most damaging quirks in the UK tax
system: the £100k cliff edge. Earn just a pound over, and you not only face an effective 60% tax rate
on the additional income due to the withdrawal of your personal allowance, but you also lose access to
tax-free childcare and the 30 hours scheme. For families, that can mean thousands of pounds of extra
costs each year…
The well-trodden advice is simple: flood your pension. By making large contributions, you can bring
your adjusted net income below £100k and sidestep the trap.
But here’s the question: is locking away that money always the smartest move – especially early in
your career, when childcare is one of your biggest costs?
For most parents, the crunch point is just 2–3 years of nursery fees. This is the exact stage in life when
disposable income matters most. Diverting tens of thousands into a pension – untouchable for decades
– just to preserve childcare reliefs might keep HMRC happy, but it doesn’t help with the monthly bills.
That’s where salary sacrifice for childcare trusts comes in. Instead of pushing money into a pension pot
you won’t see until you’re 55+, parents can redirect pre-tax income into a trust structure that pays
nursery fees directly. The benefits:
Brings taxable income back under £100k (just like pension contributions) Keeps access to 30 hours and Tax-Free Childcare Delivers immediate financial relief when you need it most—not in 30 years Flexible: once nursery years are done, salary can revert to normal
It’s time we started talking about alternatives to “pension flooding”. For some, pensions are still the
right lever. But for young families, salary sacrifice into a childcare trust may be a smarter, more
practical tool to navigate the £100k trap – helping parents today without compromising their tomorrow
HOW MUCH COULD YOU SAVE?
| Ilustration based on £190,000 of PAYE Salary | Self-Funded (£190K, £60K Pension) | Trust-Funded (£190k, £60k Pension) | Saving Self-Funded vs. Trust-Funded |
|---|---|---|---|
| Gross Salary | £190,000 | £190,000 | |
| Pension Salary Sacrifice | (£60,000) | (£60,000) | |
| Childcare Salary Sacrifice | (£30,000) | ||
| Adjusted Taxable Salary | £130,000 | £100,000 | |
| Income Tax (Total) | (£44,703) | (£32,460) | £12,243 |
| - Basic Rate 20% | (£7,540) | (£7,540) | |
| - Higher Rate 40% | (£34,976) | (£24,920) | £10,056 |
| - Additional Rate 45% | (£2,187) | - | £2,187 |
| Employee NIC (Total) | (£6,119) | (£5,519) | £600 |
| Net Income | £79,178 | £62,021 | |
| Net Income after £30K Nursery Fees | £49,178 | £62,021 | £12,843 Employee Saving |
| Employer Cost on Adjusted Taxable Salary | £16,684 | £12,544 | £4,140 Employer Saving |
|
* Assumed that all payments to Employee Benefit Trust are deductible for Corporation Tax. * PSA Ltd commits to getting advanced assurance from HMRC on an individual client basis regarding CT deductibility. |
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HR or Recruiter
A Smarter Benefit for High Earners. A Win for You.
Unlock Better Childcare Support for High Earners.
High-performing professionals earning over £100,000 lose access to government childcare support just when they need it most. We are here to rebalance that.
Power2Play is a trust-based salary sacrifice solution
that allows these parents to fund high-quality nursery
care using pre-tax income – ethically, efficiently, and
without stress.
This isn’t just a financial product – it’s a retention,
wellbeing, and recruitment advantage for your clients or
colleagues. And right now, we’re inviting forward-thinking
referrers and HR leaders to help shape our early MVP.
Refer a client, nominate a team, or integrate Power2Play into your organisation’s benefits conversation – and
we’ll donate a gift to a children’s charity for every referral.
Refer a client, nominate a team, or integrate Power2Play into your organisation’s benefits conversation – and
we’ll donate a gift to a children’s charity for every referral.
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