Looking for advice on the pay side of getting a nanny(6 Posts)
I'm considering a nanny for my 3 kids (6, 4 and 8 months). I've joined childcare.co.uk and put up a profile and we are starting to get some interest. The thing is, I'm confused about pay. I understand that we would pay an hourly rate and then have to add on tax and national insurance and soon pension. When we are discussing pay, should we be quoting the basic pay per hour or the full amount? How do you know how much the tax etc will add on? I'd like to compare costs to our alternative situation of nursery for middle and youngest child and before/after school club for eldest.
I'd really appreciate some help/advice or advice on where to look for official information.
Hi, first of all it depends if you are looking for live in or live out.
Live in Nannys generally get paid a little less because they get board and lodge included in the job and you get two babysits included.
Live in nannies are usually paid a weekly fixed sum rather then hourly rate. Or at least I was.
For live out you give them an hourly rate, it's usually after tax which I believe is gross but I am a bit rubbish at working that out.
If you check out nanny tax they are good for all that info.
You could also ring a nanny agecny up to get some info they would advice you on all this stuff a bit better then me maybe.
A lot of nannies talk in Net pay terms, that is the amount they get as take home pay. However around 50% of nannies are now paid gross and it is improving. You decide the salary so you can decide to offer a gross or a net salary. With a net salary you will not know what your costs will be, though PAYE calculators will estimate it: http://www.nannypaye.co.uk/nanny-tax-calculator
As a first time employer you will not need to provide a pension scheme immediately. The start date for that will depend on when you register as an employer, it could be Jan 2018. Certainly do factor the cost in to your long term budget. If you agree a gross salary then you pay the employers pension contribution, if you agree a net salary then you would pay employer and employee contributions.
When thinking about pay, look at the annual salary and annual cost to you as the employer. When talking to nannies, some will like to know hourly rate and others will like to know weekly, monthly or annual.
Definitely set a gross salary: is this is the total you pay them, and the payroll company will deduct the tax.
Nannies can look at tax calculators (like everybody else does!) to work out what their actual take home pay will be (this is the net salary, after tax).
If you agree a net salary, then you are fully responsible for any additional tax on top of that. So, for example, if it turns out the nanny didn't pay enough tax in their previous job (due to errors in tax coding etc), then you would be responsible for paying that extra tax now, and still paying the nanny the net salary (even though that unpaid tax is nothing to do with you! It's just that it has to be paid, and you would be liable. Technically you could try to recover it from the previous employer, but that's likely to be difficult or impossible).
More employers now are switching to gross salaries for nannies, you'll still find some nannies are confused about it so be ready to explain.
Looking into getting a Nanny, one 4 year old and one on the way. Will be some housekeeping, but we have a cleaner. Initially two children full time, until older one starts school. We were thinking of £8 net per hour ( not in London) Ideally an older experienced Nanny. Is this enough pay ? I've seen pay ranging from 8-13 p hr ? Nursery duties and some pet care also .Honest opinions please
Experienced nanny is likely to want £10-12 Gross possibly more. So £8 net may be a little low but not that far out assuming a 40 hour week.
Try to get away from Net pay. It rarely does anyone any favours and makes it hard for you as the employer to know what it will cost you.
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