we have been very very stupid and employed a very experienced nanny who said she was self employed and would pay her own tax and NI.
Now she is going to be off sick for god knows how long and i was looking around on t'net to see how we organised sick pay for her etc.
It seems that we have have been employing her illegally as we are liable for her tax and NI and she is not registered.
i am not sure what she is expecting, we had said that we would pay her 2 weeks full pay and then stat sick pay when we wrote down what we had agreed at the beginning of her employment, but i really don't know how she will get stat sick pay..
if she hasn't been payhing tax and NI we are stuffed big style
and if she has we are still stuffed because WE haven't been paying it IYSWIM.
and how can we pay her AND somebody else to look after the kids when she is off sick??
Hello i dont know anything about this but surely if she told you she was paying her own tax and NI and she said she was S/E - She new she was lying so the contract must be invalid as she has lied to you? I mean by her signing it then she is saying everything she has told you is true
There is a legal section on here, maybe put this post there also
Hope you get some advise from someone who really does know
I can't see how she can tell you she is self employed, and then want sick pay... self employed people don't get sick pay.
How about drawing up a new contract, where you are her employer and you are responsible for deducting her tax and NI, plus paying employers NI. Then I think she could be an employee who starts on full pay for 2 weeks (expect you could backdate this period so that it covers the past two weeks), then is on sick pay. At least by doing it this way, you can seek advice from the HMRC new employers helpline.
Ask over at legal/money matters, see if regulars over there can help.
Ist hindsight I know but we resneted paying 3 lots of tax on our salaries so we wrote a contract which said 'nanny is treated as self employed' We agreed to pay the equivilant rate to SSP for any sickness period. We reckoned the saving to us of not paying yet more tax and NI's was worth the extra cost of not beign able to claim SSP back. Nanny was fine with this - I didn't ask if she was paying tax etc, she signed the thing saying she was self employed and that was good enough for me.
I'd say bite the bullet, pay up on sick pay and stay stum.
But in the UK that simply doen't work Sunnyjim. The Revenue will look at the facts of the case and decide on the basis of law whether a person is an employee or self-employed. It isn't something that you can write into a contract and for it to take effect for tax purposes.
I think the tax situation has been quite well covered now, so I won't mention about that again.
As I see it, you are now in a position where you are still working and still need childcare. What can you do about that? Well, you may be able to get a nanny via an agency on a temporary basis. The nanny could be an employee of the agency, so you pay the agency and they in turn deal with tax/ni. I believe that emergencychildcare.co.uk operate on this sort of basis - cost is quite high however.
Another option is to consider a local childminder. Childrens Information Service and ChildcareLink.gov.uk can be used to obtain lists of local childminders. Explain the situation to them regarding wanting temporary care and see if they will care for your children for a few weeks.
Sunnyjim - you can avoid the Inland Revenue all you like (though when your nanny needs some benefits/pension down the line they may well investigate her employment history ), but your advice in terms of writing a line in a contract is just plain wrong I'm afraid. Of course you can write what you like if it is never going to court. And unfortunately in the UK ignorance of the law is no excuse.
Of course if she was earning less than the £80-odd pounds a week NI free amount I suspect that the Revenue would let you off the lack of form-filling.
She hasn't done her job very well, she conned you about being self employed and paying tax and NI. WHY are you feeling guilty about letting her go? She has messed you about and caused hassel. Let her go.