Have always used nursery and childminders up til now but now decided that having the kids looked after in our own home might be better for various reasons, so am currently in process of advertising / meeting nannies (live-out).
To be honest, having not gone down this route before the whole thing of drawing up a contract, organising their tax and insurance, etc etc TERRIFIES me ...... so I was wondering about finding a nanny who is self-employed, ie. more like a childminding contract, but working in your home not theirs.
Is this type of arrangement ever done in "nanny-world" ? Anyone got experience of this ? What are the pros and cons?
surely the taxman needn't get his knickers in a twist as she'll be registered self-employed paying her own tax? obviously the salary i offer her will take this into account. find it hard enough doing my own tax return let alone some-one else's !
ok, so say we do employ her in the traditional way, how do I draw up a contract ? Is there a model contract anywhere ?
I'm a nanny and have looked into self-employment and was told it couldn't be done - you can't just choose to be self employed, it depends on the nature of your relationship with your employer.
There's some information on whether someone is employed or self-employed here.
All these apply to a nanny, so they are employed:
Do they have to do the work themselves? Can someone tell them at any time what to do, where to carry out the work or when and how to do it? Can they work a set amount of hours? Can someone move them from task to task? Are they paid by the hour, week, or month? Can they get overtime pay or bonus payment?
If you use a payroll company like Nannytax, PAYEforNannies (there are several out there) they will provide sample contracts I think, and they deal with all the tax, payslips etc.
Two examples of a nanny contract. You will need to adapt them to your situation. Look through message posts on here about the sort of thing that comes up, also for latest information about Holiday Pay, Sick Pay SSP, Maternity Pay SMP (only applies if nanny is female).
If you want a nanny whom you can tell what to do, then in my view they won't be self-employed. If you used a childminder, you would not be able to tell them what to do... instead you would be the service user and the childminder would dictate their terms to you.
find it hard enough doing my own tax return let alone some-one else's !
You won't be doing her tax returns, that will be her own responsibility. You just need to give her the documents for doing tax returns (P60/P45). You'll need to file a P35 annually. If you use a good tax agency, they'll do all this for you.