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can someone tell me how I should compensate my nanny for using her own car

(16 Posts)
drowninginlaundry Thu 31-Jul-08 15:31:15

...to ferry the kids around

is there a rate for mileage that is standard (in London)?

thanks!

BrownSuga Thu 31-Jul-08 15:45:17

try here

The company we work for pays the 40p per mile for using own car.

Millarkie Thu 31-Jul-08 15:46:08

40p per mile is the maximum you can pay before it's counted a taxable perk and it is the 'standard' amongst nanny employers IME (well, I pay our nanny 40p per mile)

imananny Thu 31-Jul-08 16:51:35

40p seems to be the average - so for every 100 miles she does £40

make sure that your nanny has buisness use on her car otherwise if she is in an accident with kids, and doesnt have it, the insurance company WONT pay out - friend found out the hard way years ago - wrote her car off and company didnt pay outsad

some companies put this on for extra free - others charge a small fee about £40 - which I feel the employers should pay

something else to be warned about it that if she does use her car and is in an accident - it is important to replace the car seats of the children, incase they have taken a knock

there was a post about it on another website, and turns out that some companies will not replace the car seats if the nanny is driving, even though she had buisness use as they come under as tools of her job shock

therefore make sure you( the nanny) have in writing/on policy that IF there was an accident that seats will be covered and replaced new for old

SimpleAsABC Thu 31-Jul-08 18:12:39

Good point about car seats!

blueskythinker Thu 31-Jul-08 21:25:57

I'm surprised you think that employers should pay for the business use insurance.

I require business use insurance for my car at work, and I pay for my own insurance. I always understood that since the mileage rate is above the actual cost of petrol / diesel per mile, that the excess was to contribute towards expenses such as insurance, depreciation, wear & tear etc. My employer pays a similar mileage rate.

I think it also depends on whether you need your nanny to use the car, or if she would just like to. My nanny did not need to use the car for anything - M&T groups, GP & park all within walking distance (and my 7mnth old didn't have much of a social life then), so I didn't pay mileage - I figured that if she wanted to go further afield, that was fine, but since there was no actual need, I wouldn't fund it - although I did give her an extra £30 or £40 from time to time towards petrol.

Another thing to think about is perhaps agreeing a set mileage - I've read this on threads before - eg where employer will pay mileage for the 1st 40 miles per week, but anything beyond that are at your nannies expense. It really depends on what your needs are going to be.

nannynick Thu 31-Jul-08 23:54:54

I don't feel that employers should pay. I also don't think that Business Use is sufficient - really a nanny driving a car is quite similar to Hire & Reward. Specialist insurance is available which includes Hire & Reward for those working in childcare (so doesn't cover you as a public taxi).
Trouble with insurance is that you don't know how good it is, until you make a claim.

Mileage Allowance Rates
HMRC - Rates/Travel
First 10,000 miles per year, is 40p for a car.

imananny Fri 01-Aug-08 09:03:39

if the employers supplied a car then the nanny wouldnt have to get buisness(sp) insurance on her car in the first place

nick - is the rate ever going to go up? as it used to be 40p mile a few years ago, and with the cost of petrol going up (though my local one has gone down 5p litre) seems that the rate should go up

if an employer did pay say 50p, how would the tax office know?

nannynick Fri 01-Aug-08 09:37:37

Though if the employer did pay the insurance, what happens in the event of a claim - would the insurance be valid?

No the rate isn't going up. There are calls to have it changed, example.

No idea how HMRC would know if an employer payed over the AMAP rate. If the employer paid cash then I do wonder if HMRC would know. Tax rules however dictate that employers should notify HMRC of employee benefits - HMRC: Dealing with expenses and benefits.

imananny Fri 01-Aug-08 11:04:47

how would the insurance company know that the employers paid the extra cost of buisness use about £40, esp if they gave it cash to nanny?

lindseyfox Fri 01-Aug-08 15:41:10

i dont think the employer should pay in insurance is a little more this is what the mileage costs account for.

I work for nhs and they would laugh their heads off if we all said hey can you pay us all £50 for our extra on insurance!!

imananny Fri 01-Aug-08 17:33:23

in the end, i guess it is what the parents and nanny agree to smile

the friends who i know who use their car, their employers paid the extra needed to transport the children around

MrVibrating Fri 01-Aug-08 22:25:58

If you pay your nanny mileage (or any other expenses), and her salary is more than £8,500 a year you should fill in a P11D which will tell HMRC how much you have paid. This is the case even if you only pay the approved rate of 40p for the first 10,000 miles.

This is just one reason why it is MUCH easier to have the nanny drive your car.

imananny Sat 02-Aug-08 13:10:12

mr v - have never known any of my friends employers to fill in this form and send it off

whats the point of it [curious face]

jura Sat 02-Aug-08 14:17:35

Message withdrawn at poster's request.

imananny Sat 02-Aug-08 15:24:00

oh i see - thanks Jura x

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