Calculating tax for nanny with 2 jobs.

schadenfreude I'm totally with you I just think a lot of parents don't fully understand the tax system. It drives me round the bend.

I think the fact that a lot of jobs are part time also confuses the issue as the net comes within the nannies tax allowance anyway and they think they are getting one over on you. It sure is Bizarre! I was told by my last employer that the tax rebate I was sent in connection with a previous job should go to her because she ad instigated a net wage. Don't know where she got that idea! needless to say Mr taxman sent it to me and it went into my bank account.

I'm really going to stick to my guns in the future and insist on a gross wage.

That's utterly bizarre behaviour sunshine. Surely your employer wants to keek the gross below the threshold?! So the net wage is irrelevant.

The only value that knowing a net figure has is comparing against other nannies who are talking in net terms, which they will only have to gross up for affordability anyway. It's utterly bonkers.

I have just started a new job and tried to get the employer to agree to a gross wage but she wants to calculate it on net as it's only 22.5 hours I shall probably be below the tax threshold but liable for tax and insurance. Employer is using a nanny tax firm at my suggestion and they will work out the gross and I am going to try to get her to put that on the contract.

She did quiz me about whether I would be looking for a second job as it might affect her and I said I would probably have to. don't think she was happy but I will cross that bridge when I come to it.

I recently changed my profile on a nanny agency site to give a gross wage and immediately got a query asking me to state my net wage. It's not always the nanny who wants a net wage I wish it was made illegal for a net wage to be the starting point and every employer had to offer a gross wage

Spindelina has a good idea above. Maybe ask her what gross wage her current employers pay and match that.

You can't gross up as you do not know her taxcode. All you can do is offer a gross amount you feel is reasonable for doing the job.

You could work it out on BR taxcode but you will be paying over 15 gross, probably close to 16.

Sounds like she wants a set take home pay, yet you don't know how much tax allowance if any would be allocated to the job.

It sounds like your problem is explaining to her why you shouldn't be liable for her tax - she expects a certain net wage and expects you to work out how to achieve that.

Things you might find helpful to ensure she understands....

• the deductions are HER tax to pay. Not yours (well, some are yours but not the ones you are arguing over). It is HER income tax - tax on HER income (and income-based NI but same applies). If she is earning over the threshold, she has to pay income tax - tis the law of the land.
• it is not fair that you should pay HER income tax when her other employer doesn't.
• what might be fair is that both employers pay the same hourly wage.
• how HER income tax is then deducted from her total earnings is then a matter of paperwork. It might be easiest for all the tax to be deducted by one employer. That doesn't mean she is being paid any less, just that the tax she owes because she earns over the threshold is collected in a particular way.

If she isn't happy with that, then she isn't happy with the way income tax/NI works and where the thresholds are set. Nowt to do with you.

Presumably her tax free allowance is already being used on her other job, so she's expecting full tax to be deducted from her wage with you.

Hope she accepts. Certainly do try to avoid the pitfalls of Net wage agreements.

12ph net and 12ph gross will not be the same. Firstly, because although she's under the tax threshold, the NI threshold is lower and she will be above that. Secondly, how are you going to contract it? Are you going to say 12ph gross? In which case it won't be 12ph net, it will be 12ph gross. Or 12ph net, in which case it will be 13+ gross.

It just doesn't work. Don't worry about her net wage. Don't worry about her tax code/whether she has another job/student loan etc etc. Just agree a gross wage that you can afford.

P.S. You know that any student loan she has will effect her net wage? You'll end up paying that too if you're not careful.

Even if that does happen and you are happy paying her the £12 net make sure it is written as gross in the contract so of she does get other work it won't affect what you end up paying in total.

12net sounds high. 12-13 gross more realistic.
Maybe she thinks at 12 an hour there is no tax but that is not the case, especially when more than one job is involved.

See how much free advice you can get from payroll companies. They should give some in the hope that you use their service.

I live in the same area as you se Surrey and am an after school and holiday nanny. I get £9 net a hour and am very happy to be getting that, I do think she is asking for a lot even for a part time job £10 a hour net would be more the norm I would think. So about £12.50 a hour gross.

Costly area. Alas finding someone to do short hours is not easy. Could you offer them 13 gross (or what you can afford, remembering that there will be employers NI to pay) and see if they accept? If not, any other applicants?

After school nannies do get paid a lot but that does sound quite high, are you in London?

This us why I don't like RTI.

On the old manual system we had tax & NI tables so I could see exactly where thresholds kick in & how the scale rises.

Now we input the figures into the computer & it calculates the deductions for you.

Well in a sense it's right in that there are two types of NI payments. Employee contributions which is deducted from her pay & employer contributions which you pay on top.

nannytax.co.uk have a net to gross calculator on their website somewhere

Contrary to what I said before the other nanny employer will have to register for PAYE to deduct that.

£12 per hour gross x 15 hours per week is an annual salary if £9,360 which is under the tax level. Furthermore evenif it were to rise to say £10,500 the OP would only have to deduct tax on the extra £500, not the whole amount as she will have to do now.

The level for deducting National Insurance however is £111 per week so actually c