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Part time childcare & tax(5 Posts)
Hoping for some advice on paying & tax - we currently use School before and after school care for our 3 primary aged children but my eldest son has additional needs (High functioning ASD) and a change in manager has thrown him, I've reduced my hours to 3 days a week and I took a punt to advertise on childcare.co.uk for someone who could look after them at home for 3 days before and after school and now I have a lady who is really keen (& has SEN experience) but now I have no idea about paying her/tax/HMRC stuff!
I've looked at places like nannytax but the fees seem high (initially we would like to contract her to July max 12 weeks so approx 120 - 144 hours and have yet to agree an hourly rate)
Can we administer this ourselves with HMRC? I don't yet know if the lady has other jobs or if this is her only one. She also says she is ofsted registered so potentially we could pay her with our childcare vouchers?
HMRC provide free payroll software but you will also need to register as an employer and submit returns as such. It is fairly straightforward and there's plenty of advice on how to do it. You will also have to set up a pension scheme for her. If it seems a bit much to do, a local bookkeeper may be another option for you. Don't forget you'll also need to get DBS check done - your local authority may be able to assist with that.
You need to provide a contract - you can find examples online such as at childcare.co.uk and nannyjob.co.uk
You will need to produce payslips and report to HMRC. You could try using PAYE Basic Tools or BrightPay but if you want less hassle then pay a payroll provider to do it. Payroll providers will be around £15 per month in admin cost, often billed annually. NannyPaye charges £179.99 plus £24.99 if you need them to produce a contract.
Best bit of advice I can give is to agree a Gross salary with your nanny.
NannyPaye will do a 6 month subscription if you call and ask, so £90.
ZestPayroll will do month by month payroll... if you needed 4 months worth of payroll (so paying your nanny 4 times) then I think they charge £95 (4x20+15 scheme close)
So you need to decide if paying around £100 in admin fee is worth it to you to not have the hassle of doing payroll yourself.
>She also says she is ofsted registered so potentially we could pay her with our childcare vouchers?
Yes, you can use those towards her take-home pay. This does not affect the payroll you would do for your nanny, you simply do the payslip as usual and when you have the Net pay figure, you transfer some of that as childcare voucher and the remainder direct from your bank.
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