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I have found a lovely nanny so what to I do next to sort out paying her tax /NI - and should I use a company or is it easy-peasy

(16 Posts)
itsnotatoy Mon 22-Sep-08 17:02:53

I haven't done this before so am pretty clueless. She will be starting in 2 weeks, doing 2 full days a week and I will be paying £80 net a day. Do I just call up the tax people? And how do I figure out what the overall cost to me will be?

She will in time be looking for work the other 3 days and I know that there is some issue with only one employer taking the allowance. Is there anything else I need to know about?

And is it easier to just hand it over to one of those companies?

Finally - whenabouts do you make the payments - as you go along or at the end of the tax year? I'm panicing a little now about my cashflow in first few months

thanks

poppy34 Mon 22-Sep-08 17:06:37

I am an accountant and I'd pay a company to do it -its too complicated to run through yourself unless you've got time on your hands. You need to pay over the tax strictly by the 19th of the following month and do year end returns etc.

I think nannytax has more info on this type of thing - can also check hmrc website if you want to work out if you want to do ti yourself (you can I believe file and pay online which may help you if you are keen on doing it yourself).

FioFio Mon 22-Sep-08 17:08:23

Message withdrawn

nowwearefour Mon 22-Sep-08 17:08:34

have you signed contracts? whatever you do dont sign for a net pay amount. we pay our nanny ourselves. dh says it is easy.....

itsnotatoy Mon 22-Sep-08 17:14:52

gosh such quick replies. No I haven't signed the contract so that's why I need to figure out what the gross figure will be.

I have a few days to work it out, but she is coming round later so it would be useful to know if I need her to supply anything as well as NI, P45 from her last job etc.

poppy34 Mon 22-Sep-08 17:19:39

am sure nannytax has a calculation of net to gross if that helps smile

elliott Mon 22-Sep-08 17:20:03

I agree that you need to put a gross wage in the contract, not net, otherwise if she gets another job or there are changes to tax allowances you will have to recalculate all the time, and might find yourself paying a lot more than you bargained for
I'd get a company to do it. I did it myself for a while, but it is not easy peasy and I found it a pain, and I was not 'completely clueless' wink

elliott Mon 22-Sep-08 17:22:54

PArticularly important to agree gross wage for a part time nanny - if she ends up using her whole tax allowance on the other job she gets (which is likely if its a 3/2 split) then you will have to pay £8 plus 20% as on your days she will be on basic rate tax code.

itsnotatoy Mon 22-Sep-08 17:28:20

that's interesting elliot as I had kind of assumed I'd take the tax allowance as I was first employer - would that be unusal?

cthea Mon 22-Sep-08 17:35:54

Can someone please elaborate on this tax allowance split? I'm also looking at paying a nanny 2 days (itsnotatoy - have you pinched my nanny?) and she already has someone else 3 days a week.

Eddas Mon 22-Sep-08 17:38:23

personally i'd do the payroll myself, but then I do them at work, so i'm not the best to advise! It's not that complicated TBH, especilly as you'll only have one employee.It depends how much time you have, if you've ever done anything like this before, if you can be bothered. and for me it'd depend how much i'd have to ay someone else to do it, but then i'm a tightarsegrin

The tax code is normally on the first employer, but could be split with a lot of faffing about back and forth to HMRC(not recommendedwink)

I'd definately agree a gross figure.

jurahasfoundthehiggsboson Mon 22-Sep-08 17:44:47

Message withdrawn at poster's request.

cthea Mon 22-Sep-08 17:48:54

Thanks, Jura. Her other employer pays her net and it specifies that tax & NIC are on top of that. So it looks like I'm screwed. An accountant friend said not to worry i'd get the money back from HMRC later, but perhaps she doesn't grasp the nanny situation entirely.

Sod it, BIL is out of work (Lehman's), and he'll look after the kids for a bit.

itsnotatoy Mon 22-Sep-08 17:55:25

as mine has not got another job yet I will be the first employer so am I safe to assume I can snaffle the tax allowance then?

nowwearefour Mon 22-Sep-08 17:58:30

yes you prob will manage to grab it but still DEF DO NOT AGREE A NET WAGE. work out what it is gross (I reckon about 100 as it sounds roughly what we pay our nanny) and make her agree to that..... hmrc are a bit ofa pain but they send you a cd rom and you can do it all online....

jurahasfoundthehiggsboson Mon 22-Sep-08 18:04:48

Message withdrawn at poster's request.

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