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Nanny payroll service(5 Posts)
I start back at work next week after having DC4. I'm very lucky to be working term time only in a fairly flexible role and have a nanny starting who I've known for a while and has helped out on an ad hoc basis here and there.
She'll be doing 20 hours for me over 3 days and I'm just offering a contract for summer term as I suspect that might be more childcare than I need but want to err on the side of caution initially. I also want to make sure that all goes well and I do continue in the job after the summer!
I'm keen to find someone to handle tax/NI (though not sure it will be payable) and payroll/payslips and would be grateful for recommendations. Also, if anyone knows one who will provide a prededent contract/statement of terms, that would be even better.
Most payroll providers will provide a contract... some will provide a template, others will create a bespoke contract to your requirements. This will come at a cost, either as an optional addition to the payroll service, or be incorporated in the annual fee.
Some companies will refund you for months not used subject to a minimum period. NannyPaye for example would refund 6 months if you were not going to be using a nanny again... or you could keep that 6 month period as a credit on your account to use in the future. In theory I think you could carry over the credit for several years - so if you only had a nanny each summer (say using July, Aug, Sept in terms of payroll) then a 12 month subscription could last you 4 years. You would need to check this with payroll companies that offer refunds/credit for unused months.
All payroll companies will initially want you to pay for a years worth of payroll admin. Some companies will charge you (or reduce your subscription by a month) each time you make a change - such as a change in hours, change in nanny, change in anything really.
One payroll provider handily provides a list of what they consider are chargeable changes:
A Change means any temporary or permanent change to:
an employee’s pay,
tax code (apart from the change at beginning of tax year),
change of paydate
changes in hours including overtime,
changes of name and/or address,
the starting or stopping of childcare vouchers or variations to the notified amounts to be paid by vouchers
termination of an employee’s employment
engagement of a replacement employee.
When looking around at payroll companies, do watch out for any charges for Changes. There can be many changes in the usual running of a payroll. NannyTax and NannyPaye are the largest payroll providers and they both do fully inclusive, not charging for every little change. Smaller providers can often have a lower headline subscription figure but read the fine print to check what they do and don't charge for in terms of making changes.
Pensions for small employers starts soon and for some has already started. If this if the first time you are to be an employer, you won't need to provide a pension scheme until November 2017, so I would not worry about that yet.
With regards to if income tax, national insurance and employers national insurance would be payable, it depends on what your nanny is paid and their personal financial situation. If they are able to just work Summer Term, are they a student at the moment? They may or may not have had some other work, so that can make a difference to tax calculations. The payroll service will sort all that out for you. It can take several weeks to initially set you up as an employer with HMRC, so do get in touch with a payroll provider before you need to start paying your nanny. The more details about your nanny you have the better, though obviously you may not know lots of detail until such time as you have offered them the job.
Hope that helps.
That helps MASSIVELY, thank you very much for taking the time to give such a comprehensive overview. I will probably take a look at both nannytax and nannypaye as time is zipping by and I need to sort things out quite quickly. Am hoping it will be relatively straightforward- our nanny isn't a student but has just reduced her hours in her other job so is able to work the hours we need, rather handily. Not sure what her tax situation is with them but wish to ensure that we are all above board and would feel
much more comfortable handing the whole thing to someone else who specialises in this and can do it much more quickly than me!
Thanks again for your advice.
I would agree a Gross salary, as she has another job and you don't know what she earns in that. Then if HMRC issues a tax code notice, that will not change your overall cost.
That's good to know, thanks. I think she's on a self employed basis for that (although that may have changed, I don't really know) so it would be good to be covered for that.
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