Cutting tax

Cutting tax

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Hiring nanny

I am about to hire a nanny and I wonder if there are any tax-saving tricks I could use.

I am already registered as an employer (with pension scheme in place) as we already had a nanny before. I am aware of tax-free childcare, however I wonder if there is a better, more tax-efficient way, like hiring her through a limited company or something?

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Comments

  • Posts: 1,693 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    What trade would the company undertake?
  • Posts: 13 Forumite
    I assume it would be childcare provider (like one-person nanny agency). I'd bill myself and pay nanny salary. I'd think there would be quite a few things I could put into expenses and get a bit of tax refund, not sure if that would justify all the trouble though (I am not sure if I could use tax-free childcare in this scenario which basically kills the purpose).

    Any tax-saving ideas when hiring a nanny are welcome.
  • Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    broisatse wrote: »
    I assume it would be childcare provider (like one-person nanny agency). I'd bill myself and pay nanny salary. I'd think there would be quite a few things I could put into expenses and get a bit of tax refund, not sure if that would justify all the trouble though (I am not sure if I could use tax-free childcare in this scenario which basically kills the purpose).

    Any tax-saving ideas when hiring a nanny are welcome.
    forget it, really cannot be bothered to go thru the reasons why that idea is tosh.

    you employ a nanny, you will be taxed as an employer. End of.
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