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

Could you work out what her gross pay from her other family is? Approx? Then add the 2 gross pays together and show her what the total net on t that would be..(less than 11) then show her how as the other family aren't paying her the correct net figure you have to pay less so her tax bill ends up right? I don't imagine there is much chance of the other family politely agreeing to a split tax code...

Thegirl the OP is frightened her nanny will not take the job because she will not earn as much as she thought. She will earn less than she thought because she has to pay tax. So I disagree I think she doesn't want to pay tax.

Yonic - The OP has posted on here asking for advice on splitting her employees tax code.

Florence, the OP is paying the nanny gross - it doesn't matter to her whether the tax code is split or not.

Florence I think the OP understands perfectly well tbh. Her nanny doesn't but why the sniping at OP?

It is common for some unknown (to me) reason for nannys to be paid on a net to gross basis, as PP have said

The nanny will be/does pay tax anyway - her employers atm pay it for her so your assumptions about her not wanting to pay tax seem wide of the mark and uncalled for.

letsplayscrabble all has been very different in the world of pay as you earn for the last year and a half.

They'll happily split now, even when not appropriate. No middle ground it seems

Sorry to upset you OP but your nanny clearly doesn't want to pay tax.
Has she been paid cash in hand in the past and avoided tax?? Because I find it staggering that an intelligent adult could think they can earn £20k plus and avoid tax. Or only pay the small amount from job A

You say she doesn't understand?? But I think it is simple and yes a five year old could understand the principle that you are paid ten pounds and two pounds is kept by the government. You are allowed to earn so much before you have to pay the government. It is very simple and no need to make it complicated.

The tax office will split the tax code automatically so you don't need to worry.
Being a nanny employer is simple you agree Gross amount. You are making it complicated. The other family and the nannies tax code are not your business. If she doesn't take your job then give the position to your second candidate. You sound too desperate to be honest.

You could really put the cat among the pigeons and offer her a company car... there would quickly be no other family at all

If families agree to net to gross arrangements they are agreeing to take on the employee's tax burden. It isn't just affected by second jobs and should be considered very carefully or not at all

Some of us have fighted for years to get the industry to change to only doing Gross. Finally some big agency chaines did take notice but many nannies still talk Net.
Why? No other job pays net wages. Many nannies have worked in nurseries who pay gross. So why do net wages still go on? Wish I knew.

I meant "at least you have DONE it right"

Harsh Florence - the nanny "industry" has done no one any favours by net pay ever becoming a thing!

OP - at least you have some it right!

Sorry OP seems your nanny doesn't want to pay tax :)
Just explain you can earn 10 k roughly then you pay 20p for every pound.
So either she only works enough hour to reach a 10k income or she pays tax like everyone else.
I assume she went to school, uses the NHS etc etc. why does she think she is so special?
I wouldn't employ some one whose either dishonest or not as bright as a five year old to care for my children.
Advertise again.

Agree gross pay always. Employers who agree net pay are idiots IMO ,if you are taking on the responsibility as an employer you should understand the basics of taxation.
Ultimately the Nanny's tax code is her business only.

I haven't read all the thread. But I had two jobs last year. Job one 8 hours and job 2 12 hours HMRC just wrote and split the tax code when I started job 2. No one asked. Was @ 50/50
Didn't make any difference to overall tax I paid.

I agree with letting hmrc be the bad guy. If she asks why her pay with you is so low, just explain that her other employer has all the tax free allowance. If she wants to move it over, she can ask hmrc (or they might make a change themselves).

I employed a nanny who was in a very similar situation and I said from the start that I wasn't prepared to subsidise her other employer. She went back to them and negotiated a gross increase to maintain her net rate with them. She had said that if they wouldn't do that she would leave (them) as she realised that no-one would be happy to subsidies another employer and she wasn't prepared to take a hit on the net rate. We agreed a net rate, but I put gross in the contract assuming half of the tax free allowance. She was very keen to split her tax code so every year in April she rang HMRC and hassled them until they agreed. They don't like doing it.

This is not your problem so don't get involved. Offer her a gross salary and explain that if she wishes to split her tax code it is between her and HMRC - that would mean she gets a more equal amount of money from each employer - otherwise she will get more from one and less from the other but it is a tax issue. She needs to understand that the more you earn, the more tax you pay proportionally.

I agree that HMRC seem to be splitting tax codes more.

Last year the company I work for employed a student in the holidays. He already worked for another company so was put on BR. After our first Full Payment submission LP & behold we were issued with a 500L coding notice!

You have done nothing wrong. It's the other family and nanny who agreed nett and therefore the nanny will have to earn less salary from other family

I wouldn't increase your salary.

Yes you risk losing the nanny but ..........

Ah, so nanny had wanted a certain net wage and however they had calculated that is not what they ended up getting - is that the issue?
So their calculation was wrong somehow, such as not taking account of the personal allowance being used completely by the first employer.

So you or she called the payroll company and they mentioned the split tax code thing. Which would increase her take home pay from your job but it affects the cost to employer in the other job due to Net Wage Agreement.

Not sure what you can do. Maybe just try to explain that all her income is looked at and she is taxed on all the income above the personal allowance.

They are actively doing it now Schlafen. They have more info these days with all their new on-line systems for reporting so I guess thats why

Nanny understands that her first employer will be paying more and that this will be a problem for them, yes? She doesn't think HMRC are somehow giving her more money?