Someone more knowledgeable than me will surely come along. But in London you'd pay around £10ph net for a nanny. What generally happens is you advertise/negotiate the net salary with the nanny, but then put the gross salary in the contract. £10ph net comes down to £866.66 net per month, and then you have to gross that up to figure out the total cost to you - you can look it up online, looks like £200 net per week comes out to £223 gross per week (so £11.15 gross or £966 per month). The agencies still advertise/negotiate in net terms. The main thing is you need to agree a gross amount in the contract.
We found a great nanny recently, and she specifically requested a net salary, so she knew how much she'd receive to cover her mortgage and other outgoings. So although we'd prefer to work with gross amounts, and stated so on our ad, we were happy to be flexible.
Also I should say we work with a payroll agency, which means no complicated maths to do, thankfully!
But yes, I will admit to not having up to date information about the vagaries of the British taxation system. Thank you, this is good info - I'll take it up with my agency, who it appears should definitely have made us aware of this. (I've used their contract writing service, which as of this week still allows employers to refer to net and weekly terms).
Hi Emmiedarling I am a nanny and i have a job similar to the one you are offering - i work 20 hours a week over two days. I bring home £200 and my pay slip says £225 gross. I hope this helps you.
By the way i 'm looking for a second part time job to bring my hours to 40. I have experience and glowing references. If the job is still available can i apply please? My e-mail is email@example.com. I can mail you my CV if you drop me a line.
Foolish may have been a bit strong , but it just sounds as though you know what you are supposed to be doing, but have been talked out of doing it by an employee. It's hard with nannies because it's such a personal relationship, but she is your employee and you do have a duty towards her as an employer. A net contract is bad for both you and her, it's your job as an employer to explain that to her and insist on a gross agreement.
If she needs to know exactly how much she will get after tax she can use MrA's calculator to work it out.