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Options for paying Nanny - cash, salary etc?
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and if she is looking after the child in her own home, and taking on other children as well, she must be registered as a childminder with Ofsted. She would then be self-employed, but the process of registration is not trivial.
NCMA would be a useful point of contact for her.Signature removed for peace of mind0 -
This is no more than 4 hours of babysitting a week. Why on earth are people treating it akin to employment ?
Does practicality and common sense not exist anymore ?0 -
property.advert wrote: »This is no more than 4 hours of babysitting a week. Why on earth are people treating it akin to employment ?
Does practicality and common sense not exist anymore ?Signature removed for peace of mind0 -
Nannies are always employed unless they choose their working hours and work for several families during the same week.
You could be fine dupto £3,000 if you dont pay her tax and Ni
always agree a gross wage with a nanny (although many talk in net terms) and then pay their tax and Ni from that - she obv wont be liable for any if only job but you should still register it.
sorry for short answer really busy at the moment0 -
That was true for the OP, but FatCat's situation sounds like more than 4 hours of babysitting.
Yes, I was responding to the OP's situation and not Fat Cat's and the timeline jumped !
FC's situation is child minding. The carer would be self employed unless incorporated. There are strict issues with numbers and where the child minding takes place to get OFSTED registered. I went through getting brochures from them whilst investigating whether a friend of mine could act and be paid as a childminder (and me receive credits to help with that) and it was going to be just too much hard work, if she was going to use her home and not mine. If she used mine, less stringent regulations were applicable.
As for au-pairs, it is relatively easy. With a live in nanny, the situation is far more complex and costly. As one poster mentioned, they want their money net, so you have to cover their tax and NI contributions as well as the employer NI. The quirk is that you get taxed on income which you have already been taxed on !
If anyone is interested, most of the scenarios I worked through for the live in versus outside help when you can no longer claim tax credits due to income levels and where you need early morning help and after school help, as in the case of a single parent, they all come out in favour of buying a larger property and having a live in as opposed to paying for a childminder and then paying again for early morning or certainly after normal hours care.0 -
Thanks for all the help and advice. It would indeed be for quite a few hours more than 4! Based in London and anything to do with children is very expensive!
Seeing more registered childminders this week, but having one of those does seem like the "easier" option, though whether it is the best option is another matter!0 -
Thanks for all the help and advice. It would indeed be for quite a few hours more than 4! Based in London and anything to do with children is very expensive!
Seeing more registered childminders this week, but having one of those does seem like the "easier" option, though whether it is the best option is another matter!
I'm also in London and went through exactly your thought process last year and the live in was the only option for me, when I return to work. It is a hard balancing act but the best of luck in your search.0 -
My wife is a nanny, her employers have always used the Nanny Tax company to sort out her pay, that way she is paid net as expected and they pay nanny tax the correct NI & PAYE.
From my experience, £165 per week is very little especially in London. My wife is 8 years qualified irc, and is paid around £110 net per day.0 -
My wife is a nanny, her employers have always used the Nanny Tax company to sort out her pay, that way she is paid net as expected and they pay nanny tax the correct NI & PAYE.
From my experience, £165 per week is very little especially in London. My wife is 8 years qualified irc, and is paid around £110 net per day.
Your numbers come in around those I found, working on about £30k roughly, of after tax money, so £50k of pre tax salary at 40% and £60k at 50%. That is why I say it is cheaper to buy a bigger place to live in and pay for live in help.0 -
One advice: do not use childcare vouchers such as Computershare's, even if your employer offers them.
When I was a student, I tutored pupils, and was sometimes paid in vouchers, which I had to redeem with the voucher provider. It was an absolute nightmare: even if I sent the vouchers recorded, every month, one or more of the vouchers would 'go missing'. I would then have to call the provider to query the shortfall, then go to the parent(s) and ask them to write a letter saying they had given me one or more voucher(s) for such and such a sum, send this letter to the voucher provider, then call to chase again. Despite all this chasing, which sometimes left me out of pocket, some vouchers never got redeemed at all. As my other jobs did not pay well either, I ended up dropping out of uni as I could not pay the rent. The parents wanted to stick to the voucher system because of the tax rebate.0
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