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Nanny- pay/contract?(6 Posts)
Am looking at hopefully hiring a nanny to look after my two DCs 1 day per week. She is also doing a pt uni course, and also has another pt job, but not as a nanny.
Firstly, can anyone advise on the going rate for a nanny in Surrey/Hampshire?
And secondly, how does a nanny contract work? Do I pay her and she is reg self employed and sorts her own tax out, or do I have to do this too? And what about holiday? As we've agreed it's a term time only contract, would she get extra hol or not like a teacher contract?
Grateful for any advice on this as never done it before!
And just to add, I don't think she has actually done nannying before either so probably doesn't know the exact ins and outs of it! She currently works at my sons preschool but leaving to do her course in sept, hence being free to nanny pt too.
tbh if she isnt a nanny then i would offer prob £7gross so over nmw - you dont need to pay her the going rate, or if you can afford the going rate to employ someone who has nanny exp
you will employ her, she cant be se as regular days/hours
not sure how term time contracts work, assume still have paid holiday but may have to take it in the holidays so if say a normal school think 39 weeks, so you would need to pay her 43 weeks so 4 weeks holiday - but dont quote me on that
Nannies on Surrey/Hampshire boarder can get various salaries, £8-£12 gross per hour I would say would be typical range. As she has not done nannying before, then you would be looking at offering fairly low and then increasing salary over the years. I would offer more than NMW (6.50 per hour as of Oct 2014 for someone aged 21+) as you need to make the job attractive.
>Am looking at hopefully hiring a nanny to look after my two DCs 1 day per week.
Is it the same day each week, the same hours each time?
Assume they are your employee, do not assume they are self employed.
You can request a status decision from HMRC if necessary, though I would just assume you are the employer, and they are your employee.
HMRC: Employing Students
>She is also doing a pt uni course, and also has another pt job, but not as a nanny.
The other part time job may be using some or all of her personal tax allowance. It is vital that you agree a Gross salary, so any changes to her tax situation does not affect how much it costs you.
>how does a nanny contract work?
In the same way as any other employment contract. You set out what the terms are, what the pay is, what holiday entitlement there is, what sick pay arrangements are, probation period, notice period to leave, what you feel is Gross Misconduct.
ACAS: Written Statement
BAPN: Parents Advice
A contract example
The fact that you are considering a contract is an indicator that you consider this to be employment. If someone was providing you with a service, they would be providing you with terms of business, not you providing them with a contract.
>Do I pay her and she is reg self employed and sorts her own tax out
No, she may not fit the criteria for being self employed. Look at the facts of the work - who is in charge... are you setting the days, hours, what they do?
>or do I have to do this too?
Yes, you will need to register with HMRC as an employer. A nanny payroll company can do this for you. You may or may not need to make any deductions for employee income tax and employee national insurance - it depends on the person's personal tax situation. You may not need to pay any employers national insurance, as it depends on the salary and being one day a week, that salary may be under the threshold for employers NI.
For example, in 2014/15 tax year, if you paid £10 gross per hour, for 10 hours per week, then there is no employers NI payable.
As they have another job, you have to register as an employer, even if you end up doing zero returns (that is completing the paperwork with 0 figures).
>And what about holiday? As we've agreed it's a term time only contract, would she get extra hol or not like a teacher contract?
You could use the 12.07% of time worked method and you can insist that this is taken during school holiday time.
ACAS: Holiday and Holiday Pay
Do check carefully the academic timetable, as there may be a bank holiday which occurs during term time. If that does happen and it does fall on their usual working day, you can insist they take it off as part of their annual leave, or they can work it if you need them to do so.
Example of a holiday pay calculation:
39 week year, 10 hours per week.
10 hours x 39 = 390 hours (total annual hours worked)
Holiday entitlement: (390/100 = 3.9) x 12.07 = 47.073 hours.
You can not round down, so round up to an easily calculated amount, such as 1/4 of an hour, or a 1/2 hour, or even a full hour.
Lets say 47.5 hours. As 10 hour days this is the same as 4 days + 7.5 hours. So if a bank holiday did occur on a working day during term time, then 1 day (10 hours) could be used for that, meaning you still paid that week as normal, and had the remaining hours (37.5 in this example) to pay at the end of the school year.
>She currently works at my sons preschool but leaving to do her course in sept, hence being free to nanny pt too.
So during 2014/15 tax year she already has a job, so you would be the secondary employer, UNLESS she gives you a P45 from her pre-school job and has no other work. Is this pre-school job the one you referred to earlier, or is there another one as well?
IF she is a uni student and she is ONLY working for you and not anywhere else and IF you are paying less than 111 a week, then you may not need to register as an employer or do PAYE. Do call HMRC for assistance - New Employer Helpline. In the event that you do not need to register, you should still keep records. For example, produce your own payslips detailing when payment is made and what it was for. Keep a record of your employees personal info such as contact details, address, national insurance number. Do check their ID.
Thanks nick, that is really helpful!
It will be a set day /hours, although a wed, so shouldn't hit any bank hol issues!
Will be approx 9-10 hours on that day, so don't expect I'll be paying her more than the threshold payment. But, I don't know about her other pt job (not preschool or nannying) so guess I will need to suss that out. Probably best to register as an employer anyway then and send zero returns if needed, as it's just a bit of paperwork.
I'll have a chat with her and then call that helpline, thanks again!
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