To split additional income for nanny 50:50?

[ConvenientTruth]

Would appreciate views on what is 'fair'.

We are Family A with full time nanny.

Family B want to share our nanny part time and happy to pay £6 per hour gross.

I am trying to figure out what would be a fair amount of this for us to keep vs. pass on to the nanny.

1. We split it 50:50, with the nanny getting a payrise of £3ph gross and me getting a reduction on the cost of her by £3ph
   

1. We recognise that the nanny is doing most of the work here (!) and give her £4ph, me getting reduction of £2ph
   

1. We recognise that the quality of what I am getting (1:1 attention for my child) is now less than what I originally paid for, and therefore I get a bigger share e.g. £4ph reduction. She gets £2ph increase
   

Nanny is happy about the idea of sharing and doesn't like talking about money so will likely accept whatever I suggest. I don't want to screw her over but neither do I want to be a mug!

[jay55]

If you give her a raise won't your costs go up for employers tax and ni? So your reduction won't be the full amount for the split.

[ChristmasEvePJs]

What do you currently pay her p/h?

[CMOTDibbler]

Will the children all be at your house? In which case you'd have to factor in wear and tear, food etc, so 50:50 or you getting the bigger reduction would be my preference

[expatinscotland]

'If you give her a raise won't your costs go up for employers tax and ni?'

She must be outside the UK if family B are paying £6/hour gross which is under the min wage for the UK.

[ConvenientTruth]

Good thought, Jay. Hmmm, will need to do some sums.
Currently she is on 10 net ph
Yes, the children will be mostly at my house. However this is my preference as it's also better for me to get my laundry done, have the kids in bed etc.

I guess the Q is in principle should the benefit be basically split, more to her or more to me?

[ConvenientTruth]

Expatinscotland: No, we're in London. From what I understand if we are joint employers then her TOTAL wage (which is after all well over the minimum wage per hour) counts rather than our individual contributions.

[ChristmasEvePJs]

Only one additional child?
I would be inclined towards a £2.50 to her and a £3.50 to you reduction.

[UpWithPup]

How much time would you be sharing? If it's not very much then you're not really loosing 1:1

[AveEldon]

How are you splitting the employers costs with the other family?

[AppleSetsSail]

My baseline assumption is that your nanny should reap the majority of the benefit here because she's going to be doing quite a lot more work and your child will probably benefit from having another child around.

So, 4/2 in favour of your nanny.

If you're extremely well-off in relation to your nanny, I'd be tempted to let it slide even further in her favour. If you're not, the opposite.

[Poppybella2015]

4/2 in favour of you. That way both family's are paying £6 per hour if that makes sense?

[Karoleann]

I'd do the 50/50 split. Difference in nanny share salaries is usually £2/hour net, so £3 gross.

[AlpacaMyThings]

Sorry to change the subject but I hope you have looked at the bigger picture her - Are you sure sharing is a good idea - it looks full of problems.

Have Family B suggested this because they can't be bothered to look for a nanny themselves, and you have everything set up already? What are you going to do if one child is ill, or one has out of school clubs etc. Or Family B decide they want her at their house to do laundry and put the kids to bed

What if they 'pinch' her and you end up without a nanny?

[MillionToOneChances]

I think if you and the other family each have one child being cared for and you are accepting the wear and tear to your house for the benefits of having your child cared for in your own home, the cost should be fairly evenly split and any excess given to the nanny. On this basis, though, it doesn't sound as though your potential sharers are offering enough for the nanny to get the 25% increase which would be fair.
www.bapn.org.uk/Websites/1/Images/upload/file/BAPN%20Guide%20to%20nanny%20shares.pdf

[MillionToOneChances]

But based on your figures I'd go with £4 to you, £2 to the nanny. I'm just wary as I can't quite get my head around who is paying the extra tax. Your outgoings to provide her with £10ph net are £12.62 (plus employers NI and now pension cost?). If her hourly net goes up to £12 the gross increases to £15.56 and employers NI and pension also go up.

//www.mranchovy.com PAYE calculator

[Obviouspretzel]

So family B want someone to work for them and are 'willing' to pay less than minimum wage for their services? So basically you're subsidising their nanny costs? I can't get my head around how this is a good deal for anyone but them to be honest.

[ErrinPerrin]

I agree that this is only a good deal for Family B. Nowhere else in London would they get a nanny or nannyshare for only £6 per hour. The nanny would expect at least £12 net for doing a share, costing each family more like £8 per hour gross.

[swlondonnanny]

I bet they are happy to pay £6 per hour gross.... they will be getting a really good deal here
Nannyshares in London tend to be £12 per hour nett which depending on hours is around £15 per hour gross.
I don't know how many children you have but if you have one each they should pay half for hours you'd share so £7.50 per hour gross....

[ConvenientTruth]

Thank you all.

Here's why it works for us all:

• Family B will otherwise send their child to a childminder who is only £5 per hour. So they are paying a bit more for a nanny rather than childminder -- but since it's at our house it's not that different to a childminder really. So it is a good but not stonking deal for them
  

• For us, we save a few thousand pounds a year for not really doing anything. So it is a good deal for us
  

• For our nanny, she works no extra hours but gets more money. So it is a good deal for her
  

If I say to Family B: 'You're getting a cheap nanny, pay us more!' then they will say, 'No thank you. We'll use our next best option which is a childminder' and in that case both myself and my nanny will be worse off than if we partied with Family B.

[ConvenientTruth]

Milliontoone - the £6 is gross not net. So a £2/£4 split would be gross not net. She's not getting a £2 net increase, she's getting a £2 gross increase. (On that example.)

[ConvenientTruth]

Alpaca - good questions that anyone considering a nanny share should think about. Not a deal breaker though, there have been thousands of successful nanny shares so not concerned about them overly.

[jay55]

Will you be able to afford the raise if the other family end the arrangement?

[Hamsolo]

We do this, and are the "other family" - the share is at the other house. We pay half each, but the nanny's rate went up for shared time from £10 ph net to £13.50 net. The other family pay for all the kids' and nanny's lunches, and I guess they benefit from the tidying/kids laundry side of things. But, I can't say that bothered me overly. For any extra hours where just one family is using the nanny, we revert to £10 ph.

[swlondonnanny]

Well OP in that case do the maths, top up nanny's wages to £12nett for shared hours, keep her on 10nett for hours she just works for you and keep for yourself whatever is left over....

[ConvenientTruth]

Jay - if the other family end the arrangement then the nanny won't be doing the extra work anymore so I would expect her wages to decrease. Would you not think that was fair?