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Any more extra/ hidden costs to a nanny share?(10 Posts)
I am planning a possible nanny share with a friend and we are trying to cost it. We are completely new to hiring nannies.
Are there any extra costs which we haven't considered?
Nanny gross salary
Employers national insurance (I used Mr Anchovy calculator)
Payroll and contract- Nanny Tax- 276 per year- is this one service for both families, or do we both need payroll to give individual parsnips?
Kitty- our share is three days per week and our babies are one- there are lots of free groups around here so no need to pay for regular activities. So it would need to cover bus fares, lunches out (do we pay for the Nanny's lunch/ coffees if she eats out whilst at work?), occasional activities. Anything else?
Buying equipment for our home- extra highchair and cot, any extra childproofing.
Extra food at home and utilities- the share will all be in one home. Not sure how much this would be for three days. Am I correct in thinking that our Nanny makes herself lunch and snacks from our kitchen?
Also in terms of possible extras-
SSP for up to 28 weeks- this would be shared by both families I think
SMP- is this still refunded by the government?
If she is Ofsted registered (for childcare vouchers) do we pay anything towards this? If she is not Ofsted registered is it generally worth us paying for this?
We are trying to establish the costs clearly before proceeding, we are not being tight, just trying to be well informed!
If it's all in the one home, I would worry about a hierarchy forming with the at home family becoming the main one. If you see what I mean. So when the babies are sleeping, the nanny would have time to do extra jobs for that family. Soaking the bath toys in Milton, sorting out the odd socks etc.
Yes you provide food for the nanny while she is at work. You should also consider the cost of heating and lighting a house that wouldn't normally be occupied in the day as that can add up.
The done thing I think is to split the cost of ofstead re-registration between you and the nanny. But you can agree whatever terms you want.
I think the hosting family gets the perk of possibly getting a few child-related household jobs done, and possibly a few general favours such as being in for a delivery or tradesman, but at the expense of having to heat their house all day, more wear and tear on their home, food and drinks from their kitchen. Think about what happens if one child is ill; a nanny would generally look after a sick child in their own home and a sick child might well feel more comfortable at home.
Cost of holidays. So when she has 4 weeks holidays and bank holidays, will you need to pay for additional childcare
Also holiday wise you need to work out when you both are planning on going away, as if one family away and the other isn't nanny will still be working so won't count as any time off.
Food wise - they are 1 year now, but soon will be bigger and eating more. So one house will need to buy enough for all meals for children and meals/ drinks etc whilst nanny working. Also if she invites friends over for play date as they grow etc that will be etc food.
Ofsted registration has to be renewed annually and costs £103. It is usual for the employers to pay as the financial gain from Ofsted registration is all yours. If your employers offer childcare vouchers then it is worth getting an Ofsted registered nanny. Both you and your DP/DH/child's father can get them so it can be quite a big saving.
It would be usual to pay for the nanny's food/drink whether she is at home or out. Though obviously if she is eating out regularly, that's her choice and she can pay. You would pay where she needed to eat out because they were out for the day/she was taking the children out for lunch for a special treat etc. She shouldn't be dining out on your dollar weekly!
Christmas/birthday presents - obviously at your complete discretion, but it is normal to give your nanny a Christmas present and/or bonus and usually something for her birthday as well.
CPD - at some point your nanny will need to renew her first aid training (and possibly do other training). Who pays for that differs from family to family. IMO it is your responsibility to pay for essential training, as your employer would for you. A lot of employers don't though (and some nannies don't expect it), so again it's up to you/your nanny to decide.
Is she working somewhere else the other two days? If so, things like Ofsted registration and training can probably be split with them as well as they'll also be reaping the benefits.
Equipment wise, your biggest expense will be a double buggy if you don't have one already. You can probably don't need a second highchair, cot etc.
I'd really recommend a nanny share! We're doing it, and it's fantastic.
Obviously, the children get the lovely personal care from someone who they love - which is always the advantage of a nanny over nursery. Depending on how many days a week you're working, you might find that a nanny share isn't much more expensive than a nursery
And I think that sharing has some very definite advantages (over and above the financial) over hiring a nanny individually:
- the main thing is that the children have a companion to play with every day, which they really, really love. They get very excited when they see each other, and are absolutely lovely with each other. I think they believe they are cousins or something!
- they also have each others' toys to play with! This is obviously better if you alternate houses - could you do that?
- you have a friend with whom to share the whole journey of finding a nanny/figuring out contracts/being an employer! I've found that makes the whole thing much less intimidating
- if you're able to alternate houses (or use the second house when necessary), then that really frees you from the constraint of the house being needed every day for the children, particularly useful if one of you moves house, or does major renovations.
Extra equipment you need:
- cot, but one of you probably has a travel cot, which is fine
- double buggy
- second high chair (Ikea antilop chairs are not only really inexpensive and easy to clean, but they stack - which is very useful. I was surprised at how much extra space all the extra equipment takes up!)
- consider a play pen, since the nanny will need to be able to leave the children safely for short periods (e.g. when she goes to the toilet - she won't be able to carry both up the stairs at the same time; also when she settles them for naps, she'll have to do one at a time)
- stairgates which you might not put in for a single child who you could watch all the time also become more important when the nanny might leave one child downstairs while she settles the other (although cbeebies is great for that!)
Payroll and contract is per family. Definitely worth getting the contract drawn up by a paye company for a nanny share, since it's quite complicated to make it work individually and together (e.g. the contracts reference each other, and you divide the pay in a slightly asymetrical way because of the way NI/tax allowances work). Salary/NI costings are quite complicated to figure out on a share - I did all the research to calculate it before we went ahead, but we were still surprised when the paye company figured out the gross amount. We'd over-estimated slightly, but honestly it was so complicated that it could probably go either way.
The other one I can think of is fees to find a nanny. If you use an agency, it can be quite a lot. But even if you just use the websites, you'll need membership for a few months while you're looking for someone (you can contact someone if either you or they are a member, and nannies don't tend to become members so as an employer you do need to)
Consider that even if your contract doesn't include paid sick leave above SSP (which is probably sensible), if all goes well then you'll probably still pay your nanny's sick days if she needs them - because you will think she is wonderful, and it feels mean not to pay her sick days when she genuinely needs them and isn't taking advantage.
Also, if your child is ill in a nastily contagious way (e.g. D&V), you might decide with the other family not to expose the other child to it, so you may have extra sick days for that (which you would also have with a nursery, but wouldn't have with a non-shared nanny, since an adult can be careful with personal hygiene to avoid contagion). An advantage of a nanny over nursery is that with other illnesses, you can still go to work. We had chicken pox, which would have meant several weeks off work with a nursery, but just agreed with the other family to allow the exposure for the other child.
You mention SMP - which I think is still refunded (but I am no expert). However your nanny would accrue holiday while on maternity leave in addition to you having to pay holiday to your replacement nanny. That could be quite expensive.
Talk to payroll company about taxes. It may be one employment if nanny has all the children at the same time. If there is quite a lot one family, some shared, then it may be two employments. That will make a difference to things like SMP and Employers NI.
If one family needs care a particular day but the other family does not, how would you split the cost? Holiday, children being off sick, grandparents visiting, whatever the cause there may be occasions that care is not needed by one family but is needed by the other.
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