Emplyer of 1 pers - hopefully in the right place

loopyone

HELP HELP HELP PLease

I am about to employ a Nanny to look after my kiddies. She will be earning £50 a day NET and only working 2 days a week (3 days on 2 occassions for the next 4/5 mnths) so I think only just over the threshhold

However I cannot for the life of me find a website or anywhere letting me know the employers tax and NI Contributions!!

Please help

If she is earning £50NET how much do I need to add on to make a GROSS wage

I know ai need to register as an employer with HRMC but I want to know the cost beforehand jsut in case nursery does work out cheaper LOL!

Thanks
Lorraine

LittleVoice

Working out a gross figure rather depends on what other income your nanny has.

Why did you decide to mention a nett figure - if she has earnings from another job (and perhaps other taxable income from elsewhere) and is using all her tax allowance in that other work, you would have to pay more than if this were her only income.

To be on the safe side in your calculations you would probably need to assume that the £50 is 78% of her gross pay (allowing 22% tax on the lot but allowing nothing for NI). So that would give you a gross figure of £64.11.

Treading_Water

Hi
The Inland revenue have a PAYE calculator here ie the link

http://payecalculator.inlandrevenue.gov.uk/PAYE0.aspx


You would need to keep adjusting the information until you get the correct net figure. They also have an Ni calculator which is very similar.

loopyone

Thanks both, Nannies are traditionally salaried on a net basis so you agree the take home figure with them - why i am not really sure I did read something about it but cannot remember now.
She has no other declarable income - so would that still be 22% or would it just be 10% ?

I have no idea of emplyers tax do you pay the same as income tax?

I mean if i earn £10K I pay 10% over the threshold and then 22% after that so do emplyers pay the same?

So her yearly salary would only be about £5200 Net or if using 22% 6656.. but what about 10 % lol? I am soo confused
Thanks
Lorraine

Savvy_Sue

If you are employing her, then you are becoming a small employer. So you could phone HMRC and ask for a new employer's pack. Please don't be scared by it: payroll for just one person is really not that hard, and they are usually mega helpful on the phone lines. Most of what they send you won't be relevant.