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69% of nannies still have a Net pay contract - how can we change this?

(59 Posts)
nannynick Thu 03-Feb-11 14:04:21

Was chatting with @NurseryWorld magazine on Twitter and they said that their recent survey found that 69% of nannies were on Net pay.

Parents visiting Mumsnet will know from reading on here that it is recommended that nannies are paid Gross, as then tax calculations can be done and there are no sudden shocks if the nannies tax code changes.

Do you think that Nanny Agencies are part of the problem - in that many agencies still list jobs as Net?

How can this be changed? Should it be changed - as a parent, nanny, or as an agency, do you feel nannies should be paid Gross or Net?

SnapFrakkleAndPop Fri 18-Feb-11 09:44:23

But changing to gross gets them more cash...

3x gross is going to be more than 3x net. If anything that kind of fee structure is an incentive to move to gross for agencies!

nannyl Fri 18-Feb-11 10:01:36

true..... but which agency will be the 1st.... and suddenly be far more expensive then the rest?

SnapFrakkleAndPop Fri 18-Feb-11 10:11:27

There are already agencies which are far more expensive and people use them...

In many ways I think the relative amounts paid in fees aren't a top priority when choosing an agency. Obviously 4x net salary vs 20%annual is going to make a difference but half the time prices are quoted without VAT, agencies with fixed fees don't seem to be any more popular than agencies with fees which work on the multiple basis and the size if the fee is so dependant on the salary you pay your nanny that an agency changing from net to gross to calculate fee payments is going to be relatively insignificant.

Maybe ANA will make it a policy change?

nannynick Fri 18-Feb-11 12:22:22

If the big chain agencies changed to Gross, then others in my view would follow. So if you are registered with a chain agency, contact them and tell them you want to see job ads as Gross. Especially Tinies, who seem to me to be one of the biggest chains - they do Gross for nursery jobs, so why not Nanny jobs.

VicSussex Tue 12-Mar-13 14:29:26

I totally agree that the practice of quoting net figures needs to stop.

What with the tax allowances going up so fast, anyone who has agreed a net wage, will really miss out.

If you find that your nanny is already using her tax allowance with another employer, she can apply to HMRC to split the tax code.

wickedwitchofwaterloo Tue 12-Mar-13 15:24:46

In case anyone is interested -

My newest employer uses PAYE for nannies to do the taxation and they have advised her, that from April 2013, it will no longer be possible to operate net pay agreements for nannies

See more info here: http://www.payefornannies.co.uk/parents/RTI.htm.

(Sorry, can't do proper links on phone)

MrAnchovy Tue 12-Mar-13 16:15:28

That may be PAYEfornannies policy, but there is no reason why you cannot continue to operate a net pay agreement after April.

What you cannot do is pay different amounts each week net and tell your accountant/payroll service after the event and get them to sort out the tax - this must be done and reported to HMRC when or before the payment is made.

fraktion Tue 12-Mar-13 23:11:05

I think they're missing the word feasibly.

It's about to get nightmareishly complicated and payroll agencies may well be protecting themselves from the hassle. I'm not going to argue wink

Blondeshavemorefun Wed 13-Mar-13 07:19:25

This thread is 2 years old but I still standby my comment I made 2years ago

I blame the agencies

Looking at jobs on nanny job in my area last night and 99% still say the salary nett

One uses gross and some are coming round and saying gross which would be roughly xxx nett

Nannies also seem to like round figures - ie £8/8.50/9/10 nett where as gross would work out say 9.73 nett iyswim and nannies seem to not like this

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