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nanny share tax ni query

(7 Posts)
m0therofdragons Sun 14-Dec-14 19:58:26

Looking into a part time nanny for 2 days a week. One I like is going pt as her current family is going pt so it would be a shared nanny. I'm really confused how it works.. On our own I don't think we'll be paying her enough to pay tax -- 7k a year, but presumably her other earnings would mean she's over tax threshold? How does it work/what would we need to pay?

fatterface Sun 14-Dec-14 19:59:48

It wouldn't be a shared nanny, just a nanny with two separate employments. You need to pay her a gross wage and deduct tax and NI depending on her tax code.

m0therofdragons Sun 14-Dec-14 20:04:55

So even though we're paying less than requires tax we have to still pay tax etc? Sorry I'm aware I being really thick about this -- my job is luckily not in finances!

Karoleann Sun 14-Dec-14 20:14:36

You can ask her to split her tax code so that both jobs get £5,000 tax free and you pay tax on the other £2,000 or you can just have the gross reflect the difference - so that her NET pay will be less on your job than her other one.

mr anchovy's tax calculator can help. The tax code for a second job is BR (so one with no tax free allowance)


Either way its really important that you put a gross salary into her contract

fatterface Sun 14-Dec-14 20:25:54

You aren't paying any tax (well, employer's NI), she is paying income tax and NI. You just have to deduct the tax from her wage and pay it to HMRC, just as your own employer does with your tax.

nannynick Sun 14-Dec-14 20:51:47

So are you employing them exclusively on 2 days a week and they are doing other work for other people on the other days?

That is not a nanny share but two employments as has already been mentioned.

You would need to register as an employer. The amount of Income Tax the nanny has deducted from their gross salary would depend on the tax code (which HMRC will tell you to use and it may change at times). The nannies NI is calculated on the work they do for you. Employers NI is calculated on the amount you pay the nanny.

Agree a Gross salary.

At £7,000 a year that is Zero Employee NI and Zero Employers NI.
You would still need to pay money to HMRC - that is the Nannies Income Tax. This assumes that the nanny has all their tax-free allowance allocated to their other job, thus your job is done using BR tax code.

m0therofdragons Sun 14-Dec-14 21:42:23

Right, perfect, I think I get it. I am an intelligent woman... Just hide it well! grin

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