bringing nannies and families together

Net or Gross Wage?
When nannies and nanny agencies agree a salary with the parents they often talk about the net wage – the amount the nanny has in her hand at the end of the week. But in reality the nanny is always paid a gross wage (net wage + tax + NIC), and on top of the gross wage the parents are obliged to pay employer’s NIC.

Therefore there is a considerable difference between the net wage and the true cost of employing a nanny. Parents are advised to find out the true cost before agreeing on a net wage.

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Nannies Today > Families > Financial Information

Tax and National Insurance

As an employer to a nanny you are responsible in paying their Tax and National Insurance. This can be done by clicking on the link provided below and it will take you straight through to NannyTax which will be able to give you more help and advice in paying your nanny's tax and NI.

>> VISIT THE NANNYTAX WEBSITE

Salaries

Salaries depend on the type of option you have decided to go with, their age, experience and hours.

You could expect to pay anything from ...

£200 - £350 for live in/daily mothers help
£300 - £450 for live in/daily nannies
£8 - 15 per hour for part time/temp nanny

Nannies work mainly on a week and net basis.

Should you require any further assistance with this matter, please do not hesitate to >> contact the office.

Legal Responsibilities [as advised by NannyTax 22.05.08]

If you employ a nanny in the UK and you pay her more than £105 per week (tax year 2008/2009) the law requires you to:
• Register as an employer with HMRC
• Keep a payroll record and provide payslips on her behalf
• Pay Employee’s income tax and National Insurance Contributions
• Pay Employer’s National Insurance Contributions
• Provide an annual summary of all these deductions and payments

These obligations also apply:
• If your nanny earns less than £90 per week in your employment but more than £105 in total (e.g. if she has two part-time jobs)
• In short-term employment (i.e. a week or longer)
• To any employment taking place in the UK – irrespective of the country of origin of the nanny or employer

As an employer you are also responsible for paying Statutory Sick Pay and Maternity Pay – but the latter may be reclaimed in full from the state. Remember that National Insurance Contributions go towards your employee’s entitlement to unemployment and state pension benefits. Nannies are increasingly aware of their rights as employees, and an employer who takes care of their nanny’s PAYE properly will be considered a good employer in this respect and enjoy the increased confidence of their nanny. [Nannies Today are not responsible for advice provided by NannyTax which should be verified by visiting the NannyTax website]

01992 715 289

Becoming an employer for the first time can be a source of great concern.

If you do not have a working knowledge of the tax system the responsibilities and legal obligations involved can be both time-consuming and complex.

Fortunately inexpensive, friendly, professional help is at hand. Nannytax is the UK’s original and leading payroll service for employers of nannies and other domestic staff.

Nannytax offers a complete support service to parents and will not only take care of all your payroll responsibilities for you but will also guide you through any legal issues that may arise.

[ the above is advice offered by NannyTax ]