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Nanny vs Childminder and Nursery(9 Posts)
Anyone with expert knowledge of nannying - please help me out! I have 3 children - 1 x 7 year old daughter who attends school and will need a childminder before and after school and for holidays - I also have 2 x 1 yr old twins. I had found a childminder for part of the time I'm at work and a nursery for the remainder of the time. I wasn't happy with this solution but it was the best I could do until I considered a nanny.
The nanny will work out as a bit more expensive than the orignal solution at £10 gross per hour (is that a reasonable amount?). I am going to need her from 8am - 6 pm. I can deal with her being more expensive as it would be an awful lot more convenient for me - but I'm worried about what other hidden negatives I've forgotten.
I know I will have to do her Tax and National insurance. My inlaws wondered if it affect my own National Insurance that I pay though - do I have to pay more National Insurance (i believe this is to do with whether she is classed as self employed and whether I am her sole employer???). How about insurance?
Can anyone give me advice or words of encouragement? Or even a decent website?
Assuming you are not in London, 10 gross per hour sounds about right for a qualified experienced nanny.
8am-6pm Mon-Fri won't be an issue - actually quite nice hours. So £100 gross per day, £500 gross per week, £26,000 gross per year. Employers NI around £2600 per year.
It does not affect the National Insurance you pay on your income. However your work may offer you Childcare Vouchers which can affect what you pay in YOUR income taxes, perhaps your inlaws are getting confused by that.
A nanny working 50 hours a week will be your employee. They aren't going to have much time to do other work!
Employers Liability insurance is usually part of your home insurance. Dig out your paperwork and check the policy detail. Most policies include it - if it isn't included contact your insurer and ask what the extra premium will be... given that most insurers include it, I doubt it is that much.
asknannynick.blogspot.com - some info I've gathered together for employers of nannies. It's very much a work in progress... but you will find some things there about Recruitment and Taxation.
Some extra costs to consider:
Nanny using their own car - mileage is 40p per mile for the first 10,000 miles per year. Mileage can add up fairly quickly, especially if you are in a rural location where a toddler group could involve a 20 mile round trip.
Nanny weekly kitty - cost of outings for twins is not going to be cheap. Most nannies are quite good at budgeting and will seek out low cost activities. It is worth budgeting for £20-£30 a week for activities... with that increasing during school holidays as most places charge for a 7 year old to visit.
Nanny will want feeding during working hours. That will likely mean eating Lunch with the twins, also possibly eating high-tea with all 3 children.
Household costs such as heating/lighting may go up a bit - but to compensate for that you will get all the children's laundry done and possibly some light housework such as running the vacuum around on occasion.
A big benefit is having someone take over the morning routine... so you don't feel quite as rushed having to get all the children ready and to their various places before you go to work. Another advantage is that if your 7 year old is mildly ill, so not well enough for school, but not sick enough to need your constant attention - the nanny may still work... so you don't need to take the day off. Nannies will put up with children who have a minor illness much better than a Childminder or Nursery (as group daycare providers have to consider the other children in their care).
Nanny Holiday - your nanny will be entitled to 5.6 weeks paid holiday (this can include Bank Holiday's). This is statutory minimum so should be the same as you get from your work.
Nannynick - that is perfect. Thank you very much for the time you took to reply to me - that is very useful. I think I'm talked round to the idea now. The minor illness thing in particular!
Ive worked in nurseries and as a nanny and personally nanying was the best.
Nursuries, althought great for the childs social interaction, are usually busy, sometimes children are overseen and the things the children could do were miminal. I also found in many nursuries, the staff were extremely bitchy.
Nannying is brilliant. I love it! I can do what i want with the children i care for and the children are growing into amazing little people! As long as the nanny attends parent toddler groups, play groups, music club etc... your children would be gettin plently social interaction. The nanny could take the children swimming, gymnastics, dancing, softplay, to the park, farm trips, wood walks and all the little things that which cannot be done it a nursery.
Thank you jellybean
Back to National Insurance - my husband found this - which says that the employer IS liable for employer's NI too...
Yeah the employer will have to pay some NI too. Im unsure of how much it is though.
I have twins and a fantastic nanny. it is a bit more, but I think totally worth it.
We give our nanny a kitty of about £20 a week - she is very good at finding the free activities around, and is always out and about with the boys. Whilst we pay for her parking, we don't pay for her petrol.
The advantages of having a nanny are numerous: you children have a constant presence in their lives, plus you don't have any worries about not getting to work when they are a bit ill: she will still look after them. She does all our boys cooking & washing, and each night when we get home, they are ready for bed - so we get to spend just quality time with them before their bed, rather than rushing around getting washing on and supper ready for them. She has a lot of other friends who are nannies, so the boys are always out and about with other children - and have a group of little friends!
Whilst it is a bit more expensive, we consider it to be totally worth it - our nanny is part of our family!
In the first instance, though, I would thoroughly recommend getting a nanny tax company involved, to sort out your payslips, how much tax you owe, and they will also do your contracts for you too.
Hope that helps!
hannah - money wise, I gave the figures earlier... based on you paying £100 gross per day.
So £100 gross per day, £500 gross per week, £26,000 gross per year. Employers NI around £2600 per year.
As the employer you pay the Employers NI - around £2600 plus you deduct on your employees behalf Employee Tax and Employee NI from their Gross pay. That then results in their Take Home Pay... what is called Net pay.
You can read more about how PAYE is operated on the HMRC website. P49 is worth a good read, as that will talk you through taking on an employee. Link goes to the HTML version, there is also a PDF version (2.7MB).
As Lizzi says, if you do not have experience of running a payroll before, it can help to use a nanny payroll company to assist with the paperwork. PAYEforNannies seems quite good and reasonable price.
nannynick - I am stupid - sorry - I registered the bit where you said not affecting NI on your income - but not the line above about Employers NI. Sorry!
LizziS123 - thanks for the words of support - I think I will use a nanny tax company too.
Right. Sorted. Thank you!
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