I currently work as a nanny and was thinking about doing some babysitting to give myself a little bit of extra money. Then it occured to me - how much - if any tax would I or the family have to pay? I suppose it depends on how many hours I'd be working? in that case, is it emergency taxed? or is it only taxable after working a certain amount of hours a week/month?
You would do this on a self-employed basis and you will be liable for the tax depending on how much you have earned in your job, which will attract the benefit of your tax free allowance etc. it won't depend on how many hours you work assuming you earn enough to pay BR tax in your actual job, you will be liable for it and have to fill out a return on an SE basis as well. You don't get an additional tax free allowance for hours worked elsewhere. Or alternatively like every other baby sitter in the land take cash!
I was wondering if that would be possible - until I read on here how people have been talking about adding it on to forms and things along those lines - I always assumed babysitters did just get paid cash in hand. Just thought i'd check as I don't want to end up getting into trouble over a few hours, it just wouldn't be worth it.
If you babysit for your employer, any payment normally needs to go through as part of your wages and be taxed in the normal way like Lily.
Other babysitting is on a self-employed basis and you should notify HMRC who will tell you what to do; you should pay 20% tax on your babysitting earnings but because you are self employed the families who use you have no liability for any tax.