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Original poster

Calculating tax for nanny with 2 jobs.

55 replies

OuchyMcOuch · 08/06/2014 21:21

We're just working out what the total we'll be paying our nanny will be. She will work part time for us, and part time for another family (15 hrs a week with us, 15 hrs a week with the other family). Both jobs will pay below the threshold for tax, but together they will pay above the threshold.

Who is responsible for working out the tax? Dh says it would be up to the nanny to complete a self assessment, as it's unfair that we have to pay her tax as the pay we give her is below the threshold for tax. However, I'm sure I've read loads on here about families having to split the tax free allowance. Who's right?

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Original poster
OuchyMcOuch · 08/06/2014 21:38

Oh god, tell me about it. What is this obsession about net pay????

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Original poster
OuchyMcOuch · 08/06/2014 21:38

But self assessment isn't only for the self employed is it pictures?

That does help a bit....I'm still a bit unsure, we'll be paying her similar amounts as her other employer, it does feel a bit unfair that we have to pay all the tax on her earnings and her other employer pays nothing - we're both paying £12 net per hour but the total cost to us will be much higher as we're paying all the tax.

OP posts:
Picturesinthefirelight · 08/06/2014 21:34

So it is very very important to agree a gross wage with her, not a net one.

I can't stress that strongly enough.

Picturesinthefirelight · 08/06/2014 21:33

Nannies cannot be self employed in the circumstances that you describe so it can't be done by self assessment.

Picturesinthefirelight · 08/06/2014 21:33

Whoever employs her first will get her to fill out a P46 stating that it us her main/only job. Assuming she earns below the threshold on that job they won't have to deduct any tax

She will fill out another P46 for whoever employs her second stating that she already has another job. HMRC will then either put her on Basic Rate for the whole amount she earns (& she'll claim back any overpayments at the end if the tax year) or they might adjust her code so she only oats tax on the amount over the personal allowance.

She can if she wishes write to the tax office asking for her allowance to be split equally between the two employers. In which case they will issue you both with the correct code.

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