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Original poster

Is Mr Anchovy about? Or any other nanny tax knowledgable people? Splitting tax code advice needed!

89 replies

PassTheCremeEggs · 28/01/2015 19:58

I have a nanny for three days a week. She works for another family for the other two.

I agreed a gross salary with her of £12ph. First payslip in - whole thing taxed at basic rate because other employer is using the whole of her personal allowance.

Other family pay her net (ConfusedConfused) £11ph. Because they are using her allowance, she only gets take home from me about £8.50 an hour when we estimated it would be just under £10ph based on a £1000L tax code.

Payroll company says she can split her code between us. If she decides to do this, her other employer is going to be paying a lot more tax to pay her the same net wage and I'm concerned this is going to cause problems for her with them. But if she doesn't, she's going to lose out in her take home pay from us.

What should I do?? Any advice gratefully received! Also I need an easy way to explain all of this to her because she doesn't really understand and I'm terrified we're going to lose her over it because she's not getting enough take home Sad

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letsplayscrabble · 29/01/2015 21:13

Florence I suspect that's it - different tax offices taking a different view. It seems too unlikely that HMRC as a whole has changed policy within a single tax year.

Original poster
PassTheCremeEggs · 29/01/2015 20:45

How. How, how, how could she hope to avoid tax in this situation.

And yet again - her other employer is paying her NET. So if we transfer the personal allowance to us, she still gets the SAME salary from her other employer while getting more take home from us. So yes she'll pay the same overall tax but she will actually get more money take home per month. This is because her other employer unwisely agreed a net wage with her.

Perhaps it's you that doesn't understand the system!

OP posts:
FlorenceMattell · 29/01/2015 20:35

Scrabble they split mine in July 2014 , I never asked them. But different tax offices may be different. If the nanny asks they can't say no. But in this case if the nanny is using all her tax allowance in one job she will pay the same over the year in tax.
OP I posted because I found your post patronising to the nanny. You say you have explained x times yet still she doesn't understand? I expect she does and was hoping to void tax.

letsplayscrabble · 29/01/2015 20:03

Florence, in April 2014 my nanny had to ask HMRC to split her tax code, they didn't do it automatically and they weren't very keen. They may have changed since then, but it's very recent.

HSMMaCM · 29/01/2015 20:03

I know loads of intelligent adults who don't understand PAYE.

OP, you are lovely trying to help your nanny out.

YonicScrewdriver · 29/01/2015 19:16

Flo, I don't understand why YOU posted in the first place, so that balances out nicely, right?

YonicScrewdriver · 29/01/2015 19:15

"What, like a life threatening maths problem?"

Snort!

Like there being nuts in the Pi?

FlorenceMattell · 29/01/2015 19:09

You are making it far too complicated. You agree Gross and deduct the tax as advised.
The nanny deals with the HMRC re her tax code she is an adult not your child.
I don't understand why you posted in the first place.
An adult should be capable of understanding PAYE tax it is very very simple.

Original poster
PassTheCremeEggs · 29/01/2015 18:38

I love the worry about her coping with an emergency situation... What, like a life threatening maths problem? I know plenty of people who are seriously intelligent but wouldn't know what to do in an emergency with children, and vice versa. Ability to understand tax doesn't equal good nanny for a 2.5 and 1 year old...just as being a tax advisor doesn't make you a good nanny. Hilarious.

OP posts:
Original poster
PassTheCremeEggs · 29/01/2015 18:30

Yonic no I don't know them - I've spoken to them to get a reference before we employed our nanny but that's the only time I've had any contact with them.

I think probably best just to explain the basics of how it works and leave her to decide what she wants to do.

OP posts:
TheGirlFromIpanema · 29/01/2015 18:27

Flo is on a wind up now I suspect.

OP, like I said earlier - just sit back and wait. Once you've done the first or second pay run Hmrc will be all over it like a rash.

YonicScrewdriver · 29/01/2015 18:15

And you think someone dealing with tax for the first time and trying to understand it would automatically be bad in an emergency?

YonicScrewdriver · 29/01/2015 18:13

Sorry, I mean the reaction of the other family is out of your hands!

YonicScrewdriver · 29/01/2015 18:12

Florence, I too think you are being pretty horrid.

OP, I think it was maybe a mistake to tell her that she would get a lot more take home pay if you got half or even the whole allowance as ultimately that's out of your hands - it's up to her to go and have that discussion though. Do you know the other family at all?

Original poster
PassTheCremeEggs · 29/01/2015 18:11

My question wasn't "is my nanny a good one" it was asking for advice about split tax codes. It's not compulsory to post, you could keep your thoughts to yourself on whether she's a suitable nanny. Your first post stated you hadn't read the thread, you then "advised" me based on a string of incorrect details which weren't in any of my posts then you told me she was either stupid or dishonest. I'd call that bitchy. That's why I'm unclear as to what value you think you've added. But thanks so much for taking the time to contribute.

OP posts:
FlorenceMattell · 29/01/2015 17:53

OP I don't think my comment are 'bitchy' and I think you are very rude.
You have posted on here asking about splitting your employees tax code.
Her tax should be her business not yours. You are treating her like a child.

She took a second job. Had a BR tax code and was surprised when the net amount was less than what you had both discussed.
PAYE Tax is not complicated so if she doesn't t understand the the basics then yes she is not very intelligent.

I personally would not have someone who is not very bright caring for my children. You may not like that comment but you have posted on a public forum and I'm entitled to my opinion. I would seriously worry about how she would cope with an emergency situation.

Original poster
PassTheCremeEggs · 29/01/2015 17:47

I totally understand that it's her business whether to split the tax code or not thanks. I'm simply trying to explain to her what the result of that would be.

OP posts:
Original poster
PassTheCremeEggs · 29/01/2015 17:45

Thank you to all who understand the position. Florence - seriously. You clearly haven't read what I've written at all. My nanny has been working for me for a month - this is our first pay run.

I raised the issue with her because I knew the net pay this month was less than we had together roughly calculated (while agreeing a gross figure). I have to explain to her that's because her other family are using her whole allowance. I have to also explain to her that if she switched the allowance entirely to us she will get a lot more take home pay because her other family has agreed to pay her net therefore her salary will remain the same even if they have more tax to pay, while our deductions will go down resulting in more pay to her. I am trying to look after her as an employee because she is an excellent nanny who I am very happy with.

I want to do this sensitively so she doesn't get into a row with her other employer.

She did not raise this issue, I did. Not once have I suggested she doesn't want to pay tax. And an ability to understand the PAYE system is not at the top of my list of priorities in someone who I am asking to care for my children.

So - can you please keep your snippy, factually incorrect and quite frankly bitchy comments to yourself because I haven't a clue how you're thinking you're helping.

OP posts:
FlorenceMattell · 29/01/2015 17:38

Yonic
The title of the thread is asking for advice on splitting the tax code.
The OP has talked to the pay roll company about splitting the tax code
and quote
"I think I'm suggesting she splits it be because:"

So OP is clearly not of the understanding that the tax code is not her business but the nannies.

Scrabble I think that HMRC have changed and split the tax code automatically now. That was my experience in 2014. As soon as I took second job I received notice of splitting the code.

TheGirlFromIpanema · 29/01/2015 17:30

Petra, the other family are paying her the correct net pay. Plus tax & NI.

But if the tax code is split they will pay more. So same net pay, plus NI but more tax.

Nanny is not affected in her take home from the other family, but would be better in her take home from OP.

The problem is not with the tax or the code used per se. It's that the nanny knows the other family will squirm at paying a larger chunk of her tax on top of her agreed net pay.

nannynick · 29/01/2015 17:28

Gross pay from the other family should be on her payslip, so perhaps suggest she looks at that. The other job may pay more or less than your job - that's life. They took the job you offered at the salary you offered.

letsplayscrabble · 29/01/2015 17:27

The tax office will not split the tax code automatically, they prefer not to. They will allocate all the tax free allowance to the first family unless asked to split it.

PetraDelphiki · 29/01/2015 17:26

Agreed... Although suspect the nanny would see it as a pay cut!!

YonicScrewdriver · 29/01/2015 17:23

I think the other family will be indifferent to splitting the tax code if it doesn't impact their outlay, aka agreeing a gross figure for pay going forwards...

YonicScrewdriver · 29/01/2015 17:22

Florence

It is clear from the OP that (a) the nanny is already doing the job and (b) that it is the nanny who needs to notify both parties and HMRC of the split tax code.