Hiring nanny

broisatse

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?

uknick

What trade would the company undertake?

broisatse

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.

00ec25

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.