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what paperwork do i need to sort out pay for nanny who will be earning less that £100 a week?

(17 Posts)
oops Sun 19-Oct-08 19:32:53

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overthemill Sun 19-Oct-08 19:37:36

you ought to register as an employer with IR but they probbably wont be interested. i did use nannytax for a year with a smilar sounding nanny pay/hours and got nothing but hassle from them. got fined £1200 for not completing areturn and everything - no ownder people pay cash in hand

oops Sun 19-Oct-08 19:45:30

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islandofsodor Sun 19-Oct-08 22:03:39

You need to get your nanny to sign a P46 stating that this is her only form of income. (Box A or B). You then keep hold of this form and keep a record of any payments you make to her. As long as she never earns above the Lower Earnings Level for tax and insurance then you need do nothing more.

The link to the form is here

http://www.hmrc.gov.uk/forms/p46.pdf

islandofsodor Sun 19-Oct-08 22:07:16

She needs to be earning less than £90 per week or £390 per month.

nannynick Sun 19-Oct-08 22:25:35

Take a look at Simplified PAYE.
If they earn under NIC LEL (currently £90 per week) and it's their only job, you may need to do nothing. But they could have other income, so check and if in any doubt, operate Simplified PAYE unless HMRC tell you otherwise in writing.
At end of tax year, you complete P37 and send it off to HMRC. Do this even in the event of it being a Zero return... at which point HMRC should then decide that you no longer need to operate Simplified PAYE.

Overthemill - why did you get a fine? Did nannytax not complete an end of year form?

islandofsodor Sun 19-Oct-08 22:27:32

The P46 will tell you whether it is their only other job or not. They have to complete it anyway (unless they give you a P45 from a previous job).

oops Sun 19-Oct-08 22:30:28

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oops Sun 19-Oct-08 22:36:24

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nannynick Sun 19-Oct-08 22:46:28

Sample Nanny Contract
Nanny Contract Sample (from Voice)
Guide to Employing a Nanny - includes sample contract
Sample Nanny Contract
Nannyjob : Sample Nanny Contract

oops Sun 19-Oct-08 22:50:36

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nannynick Sun 19-Oct-08 22:51:37

Try calling the New Employers Helpline - 0845 60 70 143 (8am-8pm Mon-Fri, 8am-5pm Sat/Sun) see what they suggest.
My gut feeling is that if you calculate what you expect to pay over a year and then divide by 12, and if the answer is greater than £390, then you will need to operate Simplified PAYE.
I don't think you can operate Simplified PAYE some of the time and not at others.

oops Sun 19-Oct-08 22:55:52

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nannynick Sun 19-Oct-08 22:56:25

I've had Zero hour contracts when working for temp nursery agencies. So no issue with having Zero guaranteed hours in the contract.
Holidays would build pro-rata, not sure legally what the issues are but think you can no longer opt to pay them. Holiday Entitlement info from BERR.gov.uk
BusinessLink: Holiday Calculator

nannynick Sun 19-Oct-08 23:04:26

Perhaps ask over on the Legal board with regard to Holiday Entitlement, given that contract is Zero hours.

Looks like it could get a bit messy, with earning x amount during term time and y amount (probably over NIC LEL) during school holidays. Probably best to operate Simplified PAYE and completing Zero return for those weeks where your nannies earnings are not above the 'Free Pay' allowance. See P16
and more forms for Simplified PAYE

MrVibrating Mon 20-Oct-08 13:38:17

A couple of things to add to what is already here:

Nannynick's gut feeling is (unusually) wrong: you can't average the pay over a year or whatever. If you pay weekly, and pay over the threshold in any week, you need to operate PAYE in that period. And if you pay over the threshold for Simplified PAYE (£160 per week) you will have to operate the full PAYE scheme.

Note that if you pay less than £105 per week you don't have to operate PAYE at all (you only have to keep a record of what you pay and the NI number if it is between £90 and £105 per week). Because you can only use Simplified PAYE between £105 and £160 a week it is not as helpful as it seems.

overthemill Mon 20-Oct-08 14:40:32

sorry offline for a while. nannytax reopened me as an employer (years before this i'd had a full time nanny) and the IR decided i'd had a nanny all the time and not filled in the returns. nannytax wouldn't sort it out - i got a letter before fining stage, passed it to nannytax and they said they'd sort it.

months later i got a letter saying they'd send in the bailiffs in 2 weeks if i didnt pay the fine (hadnt even had letter abouta fine) and it took me 4 days of phoning to sort it out. really stressful and really terrible - at a time when my dd was seriously ill etc etc. and i'd earned no money apart from tiny website business for about 6 months.

i'd wanted it all legit as my part time nanny was thinking of having another baby and i wanted to make sure she was all linked up for SMP etc.

i am now paying cash in hand to a teen for after school care (all we need now) as i cant bear the hassle of it all again. i do feel nannytax let me down as i called them , left voicemail, sent emails etc. I wonder if they are a bit big now but previously had a great service. now feel differently

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