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Nanny pay and tax free allowance

(5 Posts)
traintracks Thu 21-Feb-13 21:52:05

If a nanny has two jobs, who decides in which job she uses her tax free allowance, or does it get split?

And does this affect me as an employer, if I offer her a gross salary then am I right in thinking it doesn't actually make any difference to me?

Thanks in advance, new to all this!

nannynick Fri 22-Feb-13 06:10:22

The nanny can ask HMRC who may or may not agree.
Should make no difference to you as long as you agree a gross salary.

FlorenceMattell Fri 22-Feb-13 18:56:53

The tax code is the nanny's.It is up to her to decide if she splits it or uses it for one job and pays basic tax on the other.

It is not yours, why would you be the one to decide? Sorry but would you let some one else decide how you split your tax code?

If you have agreed a Gross rate it makes no difference to you.

All advice to parents in employing a nanny tells you not to agree NET but to agree GROSS.

traintracks Tue 26-Mar-13 09:38:06

Thanks for the replies, I had heard of people getting caught out with their costs increasing as the nanny tax code changed, but that must have been those who agreed a net salary. I'll make sure I agree gross pay.

ConfusedPixie Tue 26-Mar-13 16:47:48

HMRC sort mine. I think the job with more hours gets the tax-free allowance purely through coincidence! But they do 20% for my other job and always have done!

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