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Original poster

Nanny wants a net wage contract

36 replies

SouthLondonDaddy · 22/10/2019 11:54

We are hiring a nanny. She seems great - the only problem is that she wants a contract that guarantees her a NET salary.

Do you have any recommendations on how to explain to a person who doesn't understand how taxes work why agreeing a gross salary is fair and is not an attempt at messing with her?

I'm not after a technical explanation (I don't need that, I am familiar with the details) - I am after some communication tips on how best to convey what is a banal concept to me but what seems very obscure for her.

We said no way, we'll guarantee a gross salary, but we cannot be held responsible for unpaid taxes, student loans, or any other changes to her tax situation which would be beyond our control and which would affect her taxes.

We have tried to explain why it's sensible for both parties, and we have also tried to explain that, since this year she has been unemployed until now, her net pay will be higher this year and lower the next - banally, this year a greater % of her income will fall under the tax-free band, simply because she won't have been working the full 12 months.

She will have none of it. She just does not understand how taxes work; all she understands is that her net salary will be lower the next fiscal year, and thinks we are trying to mess with her. I have pointed her to this useful article but nothing
www.nannytax.co.uk/employing-a-nanny/paying-your-nanny/gross-vs-net

Any tips?

The only response so far has been: but all my previous employer agreed to it. Well, that's hardly a valid reason - lots of people do lots of non-sensible stuff!

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Comefromaway · 22/10/2019 13:46

Just say no. It doesn’t bode well for the future.

Blubluboo · 22/10/2019 13:41

Honestly I would basically say Gross pay or you move on. If she doesn't want to understand your reasoning then there isn't much more you can do. It will be her loss as she will be without a job for longer! I feel sorry for parents who don't realise the impact of paying their nanny a net wage can have on their finances.

ChelseaCat · 22/10/2019 12:42

Direct her to CAB?

Original poster
SouthLondonDaddy · 22/10/2019 12:36

"To be honest, I haven't had a new contract since I started. But it works for us, they pay all my tax, pension etc and I know what I'm getting."

You haven't answered the question: so does your contract explicitly state a NET salary?

Can I "use" you as a benchmark?

How would you feel if an employer wanted to give you a gross contract, for the reasons I explained above? Would you understand it? Would you feel cheated? Why? Do you understand the points I tried to make?

Thanks

OP posts:
Shittiestdayinalongtime · 22/10/2019 12:22

This is my second family and I've been with them 11 years now, it works for me and them, I know I get paid well for my job either way. The first family paid a net wage too.

Shittiestdayinalongtime · 22/10/2019 12:18

To be honest, I haven't had a new contract since I started. But it works for us, they pay all my tax, pension etc and I know what I'm getting.

Original poster
SouthLondonDaddy · 22/10/2019 12:12

" when I started they told me how much net I would be getting. "

What does your written contract state? Does it guarantee a NET salary?

If so, that was poor judgement from your employers, because they end up liable for a number of things beyond their control which would affect your tax status: student loans, unpaid taxes, previous employer messing up your payslips and calculating taxes incorrectly, etc.

Also, with a net contract you do not benefit if, in a new fiscal year, the tax-free allowance increases.

OP posts:
Shittiestdayinalongtime · 22/10/2019 12:05

I've been with my current family a long time, but when I started they told me how much net I would be getting. The amount doesn't change, unless I get a pay rise, and I'm still told in net how much it will be.

Original poster
SouthLondonDaddy · 22/10/2019 12:02

I used my parents as an example of the Clapham-omnibus-man : I tried to explain it to them, and they understood absolutely nothing at all! :)

So I am not surprised that someone doesn't understand how taxes work . I am only looking for some communication tips on how to explain it.

OP posts:
Lamentations · 22/10/2019 12:00

What else will she be totally unreasonable about? I'd look for someone else.

BIWitch · 22/10/2019 11:56

Probably not a good sign for the future if you hire her!

Lots of nannies used to work like this, I think, so I can see why she's arguing for it. But inability to understand (or refusal) isn't great.

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