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Childminder to Nanny: Can you be self-employed?

(9 Posts)
Streathamum Thu 04-Sep-08 19:12:57

Help - my childminder's just given me a month's notice, and here's why:

She told us she no longer wanted to care for children at home, but offered to be our 'nanny' instead. The same job, for a bit more money, but working at our house instead.

But I've only just realised I'm legally obliged to pay her tax etc - unless anyone knows another way??

She's now told me it's not financially worth it if she's not self-employed. And we don't really want the hassle/expense of paying her tax either. I need her/someone to pick up from pre-school four days a week, term time only. But there aren't many childminders around here. What do I do???

Simplyme Thu 04-Sep-08 19:19:20

Nannies can NOT be self employed. If you pay her as a nanny you have to pay her tax and NI as well. I think she is forcing you into a situation. You agreed on her as a childminder end of.
Either seek for a new childminder or tell her No you won't change the deal. Perhaps if you wanted you could up the money you pay her by a bit but it has to be as her registered as a childminder still in her home or you pay tax and NI. I can't see any other way around it

HTH and sorry

imananny Thu 04-Sep-08 19:27:25

agree with simplyme

a nannny can not be se,so decide if you want to be an employer and pay tax and NI for a nanny or have CM or use an nursery

Streathamum Thu 04-Sep-08 19:43:42

Thanks - it's just as I feared. She might agree to be our nanny if we paid more.

Anyone know the going rate (inc tax + NI) in South London? Or know anyone who can start in a month?!

imananny Thu 04-Sep-08 19:51:43

going rate is prob $10 gross

Streathamum Thu 04-Sep-08 19:59:06

Ouch! Out of my price range I'm afraid. But thanks for the info and advice. smile

Simplyme Thu 04-Sep-08 20:02:53

Daily nanny in S London is prob £9-10 phr

navyeyelasH Fri 05-Sep-08 17:04:36

Just to clear up some misinformation on this thread:

A nanny can be self employed:

On another thread I wrote: *You can be a Self Employed nanny if you provide care for various different families that change frequently, buy things for your business (ie I just got some car seats & a buggy) and determine your own hours & rates.

If the work becomes more "regular" with a family then they MUST employ you. But the status officer said that the words "regular" are open to negotiation and reflected in case law. So could mean same family regardless of days but could also mean seeing same family on same days each time if you see what I mean?*

Also I have since found out that you can also be classed as a self employed nanny even if you only fulfil one part of the Inland Revenues Self Employmed checklist it all depends on how the HMRC and there are no hard and fast rules only guidelines.

If you have any doubts (as a parent) the Tax Office told me that you should write to your local tax office providing them with as much information as possible and they will decide on the tax status of the potential nanny. This way you also avoid a potential £3k fine.

But in your case Streathmum your CM sounds as though she would be classed as an employee. Woudl she be working on a perm basis?

If I were you I'd ask your CM how much she would like to earn Gross. £10 may be the going rate but she may accept less so it never hurts to ask. Another option is that you get together with another parent and share the cost of the CM - a nanny share. This would obviously be cheaper for you.

There are also plenty of companies that can sort the tax out for you for a small fee such as

Streathamum Sat 06-Sep-08 20:28:32

Thanks navyeyelasH, I thought there had to be a way. But I reckon in my case she would be my employee. It sounds like she just doesn't want the hassle of it all, so I'm having to look elsewhere. Thanks for advice, though!

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