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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

Original poster

Quick question for parents re: nanny tax

28 replies

Smerlin · 22/03/2014 13:35

Was dead set on using a childminder for when I go back to work but am starting to lean towards a nanny share as am worried about the ratios of a childminder.

Is it much much more expensive than a CM? Am doing my research on gross pay, NI etc etc and the one thing I can't find info on is how much nannytax charge for managing your payroll for you. Does anyone use them ? How much do they charge?

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TheScience · 22/03/2014 13:49

If you simply offer/agree a gross wage then there are no tax issues - it doesn't make a difference to the employer if the employee has another job or owes tax.

AuditAngel · 22/03/2014 13:46

I would consider whether or not you have a choice of using child care vouchers with a childminder (some do) or a nanny (probably unlikely) and I second the point about the cost of a nanny once you have grossed up the salary.

When you are talking about a nanny share, do you mean full time care from a nanny looking after children from 2 families and you share the cost? Or a part time nanny? If the latter, please be aware that the main family (with more hours) get to use the Nanny's personal allowance while you wouldn't. This is relevant because nanny pay is usually agreed at a net pay then grossed up with the employer bearing the cost of grossing up.

Also, try to get something into the contract about not having to bear the cost of any old tax the nanny has to pay as this is often adjusted via the PAYE coding.

TheScience · 22/03/2014 13:38

Usually those companies are £100ish a year I think.

How many children do you have? A nanny probably works out 2-4 times more expensive depending on where you live.