Am about to employ a new nanny, and wondered whether anyone had any comments on nannytax or nannypaye - payroll services. Do you have to be mega organised to cope without them? Are they worth the money? TIA
I do mine myself and it's pretty easy. The Inland Revenue send you a pack with all the info you need. Pretty much everything is on a CD ROM which works out all the tax and NI for you. You then just have to pay it - I've set up standing orders to pay the nanny and the IR so it's straightforward now.
It does take a little bit of getting to grips with at first but after you've done the first month it's all set up.
Then at year end you have to file a return but it's just an addition of everything you've paid during the year so also not hard.
Don't know how much the services charge but if you have a computer and are a bit numerate I wouldn't have thought it was worth it.
The Inland Revenue have a fairly good service for domestic employers - one of my friends even had someone come to her house and take her through the forms.
I used to prepare the form once a quarter - it would take 30-60 minutes I guess? I then had to type out the payslips (done after the event!).
No idea as to what Nannytax actually charges. I wouldn't say that you have to be mega organised, but it is a quarterly chore that you can't put off! I'd probably estimate a days effort per yeard including the year-end forms(but in fairness I do have a background in finance and am not scared of numbers)
If you do it yourself and file on the internet - very secure and easy then you can get a discount from HMR&C.
If you can add then I would give it a go yourself. They are really great on the helpline - the nanny tax services use practically the same software as the Revenue send you (plus they probably use a 19 year old anyway). its easy money for them.
If it's any help I use a company called Nannywage and they are incredibly efficient and helpful and charge £116 per annum (which compared very favourably with Nannytax at £250 - £500 if you were in a nanny-share if you can belive it!).
Personally I can barely add up so it's an essential service and worth the money!
Thanks everyone - i think i will use either nannypaye or nannywage for the first year - I make such heavy weather of my annual SA return, don't think i can face another one, as well as the trauma of going back to work. Plus the £250 incentive for ty 2005-2006 is worth having as it pays for the service.
HIya, just saw this. I use nannypaye. Never used nannytax (but commend them for a fantastic and wonderfully informative website). Nannypaye is cheaper. Can't remember off the top of my head but I think it's around £150 per year. Personally, I wouldn't live without them. They remind me when to pay. how much to pay, and so on. I think they are well worth the peace of mind.
Hi, I am also in the Nannypaye camp - I am not sure how I would cope without them! I have a nanny from an EU accession country so we had to sort her work permit and NI number as well, so not having to worry about tax was great - I think the £150 is definitely worth it!