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boss wants to change pay scheme

(11 Posts)
bubaluchy Thu 16-Jun-11 23:15:33

I'm at the moment nannying and being paid via the simplified scheme, my boss wants to change it to 'normal' PAYE so she can legally have me for over 30 hour weeks when needed, but she is asking how I feel about that.

What are the implications, pros/cons of being paid via the standard PAYE system?
Any advice gratefully received

nannynick Fri 17-Jun-11 06:09:11

Shouldn't be asking you, in my view.
Makes no difference to you as far as I am aware. Full PAYE is preferable these days even for jobs of just a few hours as should be more accurate.

Have you agreed a Gross salary?

nannynick Fri 17-Jun-11 07:52:07

Whats with the 30 weeks thing, are you not contracted to work all year round? Payroll is based on income level not working weeks, so what I suspect you may mean is that your boss will be paying you over the max income permitted under the simplified scheme, thus has to change to full PAYE.

Have you had any other jobs in the past? How were they paid?

nannyl Fri 17-Jun-11 09:29:31

if you have a gross salary agreed in contract (as you should) then it will make no difference to how much you are paid.

IMO its up to your boss which (legal) scheme she used to pay you properly, and so long as you are paid properly etc, its not for you to decide.

bubaluchy Fri 17-Jun-11 14:14:33

Thanks for your feed back , nannynick not 30 weeks sorry, 30 hour weeks.

On the simplified scheme an employer is only allowed to employ someone for a maximum of 30 hours per week, my hours are slowly creeping up so she wants to change to PAYE.

I nannied abroad for four years but all the pay stuff was different and all sorted through the agency but this current position is a private arrangement.

I am currently paid weekly so was just wondering if PAYE dictates that you have to be paid monthly.
nannyl thanks also, I don't actually have a contract, I should do really, I just don't want to seem like I don't trust them as they are great employers.

Karoleann Fri 17-Jun-11 14:29:30

No difference at all. I pay one of my nannies on the simplified scheme and the other on the normal one. Its the same in terms of accuracy the only difference is that the simplfied scheme I pay tax and NI 3 monthly and normal is monthly. The other differnece is the normal allows you to only to submit documents online and the other I can submit manually.
You can be paid monthly or weekluy with either

bubaluchy Fri 17-Jun-11 14:36:53

Thanks a lot Karoleann that clarifies it then, I was just wondering why she would ask me how I felt about it if it isn't going to change anything
thanks again smile

mranchovy Sat 18-Jun-11 12:53:21

The limit is £160 per week, not 30 hours, but so-called Simplified PAYE is the work of the devil and is actually more complicated than 'real' PAYE sad

It shouldn't make any difference to the employee.

nannynick Sat 18-Jun-11 13:19:59

MrA as you are online... does it make any difference to the employer (apart from different forms to complete)? Payments to HMRC are made on the same timescale I think. I'm wondering why Simplified still exists.

mranchovy Sat 18-Jun-11 16:15:23

No, not much difference - small employers can elect to pay PAYE quarterly on 'real' PAYE, and although with Simplified PAYE you don't have to file forms online, the HMRC online system for end-of-year returns and in-year forms is actually fairly good so this is not a problem in practice.

As I think I have mentioned before, Simplified PAYE for domestic employees is a hangover from the time when payroll meant either a mainframe computer or complicated manual tables. They presumably need to keep it available for people that are already using it, but why they don't prevent new applications I don't know. Perhaps they are assuming it will die when the NI threshold (currently £136) reaches the limit of £160 (which I think has been frozen for years), but this will still leave people on BR to deal with.

I can only guess that new nanny employers decide to use the scheme because it is called "Simplified PAYE for domestic employees" so they expect it to be the best thing to do, plus they are probably given the details by a nanny agency that know sweet f may not be experts in the matter.

bubaluchy Sat 18-Jun-11 19:54:23

smile

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