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Self employed or employed nanny?

(8 Posts)
cakesandphotos Sat 07-Nov-15 11:32:55

I'm a nanny and when I got my current position, I became an employee. I thought this was unusual but didn't question it because it was easier than being self employed.
My job will end mid January as the family move to Australia. I mentioned in passing to my boss that I suspect for my next job I will need to go self employed and she said it was illegal to be a self employed nanny and that I should always be employed by the family. I was surprised but if this is the case, I would prefer it as it takes a lot of the stress off me.
Does anyone know if this is the case?

senua Sat 07-Nov-15 11:37:31

It depends.

It all depends on the exact circumstances between you and your employer/client. There is no hard-and-fast rule, just loads of tax law.
I would prefer to employ because if the nanny says s/he is self-employed but doesn't pay the PAYE etc then HMRC would come chasing me for the money. Much simpler to do PAYE from the start.

StandoutMop Sat 07-Nov-15 11:45:18

Generally if you are providing childcare in their home, on a fixed / agreed contract (so eg every Monday & Thursday, rather than 2 days per week agreed between you on an ongoing basis), you would be deemed to be employed.

There aren't many nanny arrangements where the nanny is genuinely self employed, although I know people who work this way. I also know someone who was hit as their self-employed nanny paid no tax etc. IR deemed them to be employed and my friend liable for back tax and NI contributions, plus student loan repayment which should've been deducted at source also.

I would never employ a self-employed nanny.

museumum Sat 07-Nov-15 11:47:07

Self employed people can generally choose their own hours and often sub-contract the work if they can't do it themselves.
Neither of those are very appropriate for a nanny so generally nannies should be employed.

cakesandphotos Sat 07-Nov-15 13:48:55

Thanks for all your replies. It would be reasonable then to ask my next employer to employ me rather than for me to go self employed smile

LibrariesGaveUsP0wer Sat 07-Nov-15 13:52:34

Generally a straightforward nanny should be an employee. It isn't really a question of choice but that the type of relationship is employment.

Some specialist arrangements - most obviously maternity nursing nannies and emergency cover - would he self employed.

nannynick Sat 07-Nov-15 15:49:13

Gov.uk: Nannies
NannyPaye: Can a nanny be self employed?

In the vast majority of cases a nanny is an employee, even if they are only working 1 day a week. If that day is a set day with set hours, then it is likely to be employment.

You want to be an employee so you get employee benefits such as:
- Right to having a contract/written statement detailing the agreement.
- Right to notice if the job ends.
- Paid holiday (minimum 5.6 weeks)
- Entitlement to Statutory Sick Pay
- Entitlement to Statutory Maternity Pay
- Your employer has to deduct Tax and NI and pay those to HMRC, you don't need to do business accounts.

In rare cases a nanny might be self employed if they are working just when THEY decide to work and they are able to turn down requests. Think more like an evening babysitter, they are not working the same day each week or the same hours, they just work on a when needed basis and they can say No.

cakesandphotos Sun 08-Nov-15 14:24:51

Thanks nannynick, those links are really helpful and clear up my questions smile

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