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Nannyshare - cost and arrangments...advice
I have just interviewed a nanny who is available 2 days a week (mon and thurs) - she wants £9/hr net -- how d I calculate what this will cost me gross. she is working the other two days for another family who use nannytax service. She doesnt work fridays - how do we agree holidays esp bank holidays (ie Mondays!)?
That to me isn't a nannyshare but 2 separate jobs.
Use mra's handy calculator and plug in the net figure with a BR tax code to get the gross plus employer's NI. Make sure you put gross in the contract.
Holiday is 5.6 weeks per year for everyone, pro rata, including Bank Hols, so unaffected by the Monday issue.
If she's told the other family she wants £9 net per hour then you do realise that you are effectively paying her a higher wage?
You won't know the nannies taxcode initially and the chances are that all their personal tax allowance will be used in another job. Therefore base all your calculations on taxcode: BR - which means that every penny they earn in your job is taxed.
Please do not agree to pay them a Net wage. As you have already found it means you don't know how much it will cost you, either now, or later on. Make sure that you only agree to pay a Gross wage.
So you need to establish what that might be... thus as others have said, use the PAYE Calculator by MrAnchovy to get some rough figures (they are not rough, it's just that you can't use them for payroll purposes - you need to follow the correct HMRC procedure for operating payroll).
How many hours will they be working for you? 20, 22, 24... you don't say so it's hard to calculate likely figures. If it's 24 hours per week (12 hours per day) then £12.22 gross per hour (£293 gross per week) could well be the Gross wage figure.
Employers NI on that would be £1134 per year. Note: April often sees changes to tax rates, including Employers NI, so figures are a guide only... do expect them to increase come April 2012.
Then there are other extra costs to think about. See Example calculation for how much a nanny might cost for 2 days per week for more about extra costs that may be incurred, such as mileage payments, daily activity budget, cost of running payroll.
For details about Holiday Entitlement, see BusinessLink. Someone working 2 days per week, would get a minimum of 11.2 days holiday. You cannot round this down. So consider what you will do about the 0.2 of a day.
Bank/Public holidays can be included in that 11.2 days if you wish to do so.
I would suggest that you sit down with a calendar and work out how many bank/public holidays fall on their working days over the next few years. As they are working on a Monday there will be quite a lot. As they don't work a Friday then Good Friday will never be one of the days. Other days like Christmas, Boxing Day could well fall on a working day from time to time.
Bank/Public holiday dates.
Hello, I used a two day/week nanny for a while.
Holiday is 11.2 days (rounded up to 11.5 days). This includes bank holidays.
Previous nannies contract stated all bank holidays taken as holidays, of the remaining holiday half can be chosen by the employee and half by the employer.
My current nanny although works another day in the week rather than the bank holiday as she wants to keep her holiday for another time.
With regards to the tax, my previous nanny split her tax code with her other employer so we had half the tas free allowance each. (She need to do this with the tax office.)
Current nanny doesnt do this, so I pay her the same eqivalent gross that I would have paid her if she'd have split the code. So her net is a little less that she originally wanted.
Hi there, I'm not sure if this is of interest but we have a 19mth old boy and are currently looking to share our nanny with another child. Our nanny is warm and kind, flexible and has over thirty years experience. We pay £100 per day all in and would like to split that with someone else. We are based in Victoria Park, E2
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