That's it really. I've been quoted £260 a year from Nannytax. They seemed good when I spoke to them on the phone. Just wondering if they're the best to go with ... or do other companies do the exact same job but charge less?
PAYEforNannies seems to be good. My boss uses them, doesn't seem to have any issues and I've never found an issue with my payslips.
If your nanny only has one job, you are paying them Gross and are paying Monthly, then you could certainly do it yourself. It just takes a bit of time to get your head around what it is you are doing. You may find that using a payroll company for year 1 will give you the opportunity to see how it works, then you can decide to do it yourself in year 2.
It may complicate things, or could make it easier - really depends on the tax coding that gets used for the job. If you are paying under £700 Gross a month, then you can use Simplified PAYE. Working for you for only 1 or 2 days may result in it not being the person's main job... thus it may mean that the personal tax allowance is allocated to the first job and when working for you it all gets done at Basic Rate tax.
Vital that you agree a GROSS wage. Expect you have already done that.
Yes, stating salary as hourly is fine. You pay Employers NI on top.
When contacting the payroll company, make sure you tell them that your nanny has another job and that you need a P46 to give to the nanny. Then when your nanny starts, they either give you a P45 or they complete the P46. Depending on how the P46 is completed, will determine the initial starting tax code for your employment.
Another question if I may. If the nanny and I decide at a later date to do a nannyshare with my friend's child (this is an option), can I pay all the tax and NI and my friend pay the nanny directly half of the net pay in childcare vouchers? Or does it all need to go through me. I will also be paying in childcare vouchers too.
Nannyshares get more complex. What you can do will depend on the tax rules at the time. You may find it is more tax effective if both families are joint employers of the nanny - only one set of Employers NI then. Childcare vouchers may not exist, so don't rely on them being around. If each family is registering as an employer in their own right, then they will each need to operate PAYE, so will each need to deduct nannies Tax/NI and pay Employers NI.
It is more tax efficient to have 2 employments paying (say) £150pw each than 1 paying £300pw.
This is because there is no employers or employees NI on the first £110 per week in each employment. So with 2 employments there is NI on 2 x ( 150 - 110 ) = £80pw and with 1, 300 - 110 = £190pw.
Doozle to answer your question about childcare vouchers, all payments made with vouchers must be accounted for through PAYE - the vouchers are just a way of giving the nanny money, they still count as part of her salary.
Whether you can include these payments in your PAYE or your friend has to operate a separate PAYE scheme depends on whether there is a single employment or separate ones.