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how much would two days a week cost...?(17 Posts)
Desperately trying to fix my childcare arrangements for when my elder DD starts school... Does anyone know how much - all in - I'd be looking at spending for a live-out nanny to work 8am - 6pm two days a week? The nanny would be in charge of my 18 month old all day and do school runs and after school with my four year old. This is in Hampshire (so probably not far off London prices).
I live in an area with a dearth of childminders and I'm getting pretty panicky!
Runoutofideas thank you! I'm identifying with your user name right now...
Would I have to figure out the nanny's tax/NI myself, do you know? So if I pay £11 p.h. gross, say, do I pay HMRC £3 and the nanny £8 (or whatever it is)?
This may actually work <clutches wildly at straws>!
Yeah plus employers ni will be another £12 per week ish
Sounds like I need a tutorial...
So, if I employed a nanny two days a week, ten hours a day for 10 pounds per hour gross, it would actually cost me 212 p.w. because of the NI? Does anyone know of any good websites for learning about this stuff?
I'm just looking into it myself - I was pricing 25 hours at £10 and I used taxman.co.uk who added £16 employers ni on top. If you do go ahead you can pay a nanny tax company to do your paye. I think it's about £100 a year.
Might be worth looking at some of the companies who do nanny payrolls. They can advice you fully. Just make sure you agree a gross wage with the nanny. The amount you pay the nanny and the amount you pay the HMRC can differ greatly depending on whether the nanny has another job, student loan, private pension, investments etc. If it is a second job for example; she may well have used all her tax code on the first job and pay 20 percent tax with you.
She will also be entitled to holdiay pay 5.6 weeks per year, so for two days 11.2 days per year.
Mr Anchovey, Nanny Tax good websites.
If you budgeted for 300 a week that would probably cover salary, taxes, some outings/activities.
Google: nannynick 2 day nanny
that may pick up threads on here and elsewhere with an example 2 day calculation.
I'm confused - as much as £300? Surely even with food, petrol £300 is a bit much if gross wages are £200?
There's a calculator you can use - google Mr Anchovy.
I think £10 gross sounds low - where I live in London all the nannies I know earn £9-13 net. I pay £10.50 (lowish for our area as she is a NWOC) and that equates to about £14 gross before NI. So that's roughly £280 for a 20 hr week. Also be aware that it is likely your nanny will have another job for the rest of the week which will affect her tax code so when you input your figures into mr anchovy you'd be best to input for a 5 day week then just multiple the final figures by 2/5. If that makes sense!
£300 may be a bit much, it will depend on cost of various things (softplay, swimming, music class, phonics class, babysigning), thus I suggested a google phrase which would result in details of how to go about doing a more detailed calculation. £250 may be more realistic, hard to know until doing the full calculation with 2013/14 taxation.
Example Calculation: £11 Gross per hour, 20 hours per week.
Nannies Salary: £11 Gross per hour
Number of hours per week: 20
Nannies Salary per Week: £220 Gross £11,471 Gross per Year
Employers National Insurance: £ 520 2013/14 tax year (calculation by MrAnchovy's PAYE Calculator)
Nanny Payroll: You can do this yourself or you can get a lot of a assistance from a Nanny Payroll Company such as PAYEforNannies who my employer has been successfully using for many years now. The cost of having a payroll company is around £115 a year (for monthly payroll). The payroll company will produce payslips and tell you when and how much to transfer to HMRC in terms of the deductions (Employee Tax, Employee NI) as well as your Employers NI.
Weekly Expenses Kitty (for activities/outings): £5 per day, you may find the cost increases during school holidays. Based on a 47 week year, nanny working 2 days per week, £470 total.
Nannies Travelling Costs Whilst On Duty: If your nanny uses their own car, then employers would usually reimburse the cost at £0.45 per mile (this is known as the Approved Mileage Rate). Employers can negotiate with their employee to pay less than this, though you should take into account your nannies costs of providing a car, car seats, suitable motor insurance to include transporting children for whom they care.
How many miles your nanny would do will vary. Consider the usual mileage they would do to take children to school and back, to get to toddler group, other outings. I would say that I can easily do 25 miles a day, often more especially during school holidays. Start recording the mileage you do in your car during the week, you may be quite surprised how quickly the mileage adds up even if you are just going to the local shops, library, playground, woods, PYO farm etc.
For a 2 day per week nanny I suggest factoring in at least 50 miles so £22.50 per week, £1170 per year.
While your nanny is on duty, you give them food and drink. Increase in food bill, extra £3 a day maybe? Heating/Light will also be used more as nanny is around during some of the day, so another few pounds. If comparing with a childminder/nursery, lights wouldnt be on at your home, heating may also be set low. If comparing with you staying at home, then there wont really be much of a difference at all. There is also some additional wear and tear on the property.
Perhaps put all that together... say £8 per working day.
So 2 days x £8 = £16. 47 x £16 = £752 (47 weeks, as nanny has to take minimum of 5.6 weeks holiday)
Total Cost of Employing a Nanny For Two Days Per Week
£11,471 gross salary, Employers NI £520, Nanny Payroll £115, Activity Kitty £470, Mileage £1170, Food/Drink/Heat/Light/Misc. £752
Grand Total: £14,498 which over a year (52 weeks) is £278.81
So £300 was not that bad a guess
Oh... forgot that the mileage would be over 47 weeks as well, so that's £1057.50
£14,385.50 / 52 = £276.64 roughly.
Hope that helps, unclefluffy. Try to work out realistic costs for activities, expenses which reflect the reality of your individual situation.
Cor! Thanks so much for all that! You're brilliant!
@ the detail nannynick
It's really useful to think about all the costs associated with a nanny OP, but also do distinguish between non-negotiable e.g. nanny's wages, NI etc and the ones that can vary massively e.g. mileage and activities.
For me mileage is £0 per year. There are some public transport costs, but these are optional (days out further afield). Everything is within walking distance. I would also say for 2 days a week your nanny could probably only do free things, so theoretically your activities budget could be £0. If you keep both of those to £0, you'd save £1640 a year, bringing your weekly bill under £250.
I'd also add onto food/drink/heat/light the cost of the children's food/nappies etc as some childminders/nurseries will provide these, but obviously with a nanny you're paying for those as well.
Quite right Outraged, some costs are highly variable.
So it can help if parents keep a spending diary for a week or two to find out how much they really spend on things associated with their children. Then split that cost into things the nanny would be doing and things that are occasional parental costs (such as buying new school shoes).
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