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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

Original poster

nanny wages cash in hand

131 replies

janett · 06/07/2008 01:32

why oh why do some employers feel the need to offer x amount pay and then when it comes to signing contracts they want to pay at least a 1/3 cash in hand? dont they realise nannys might one day want a mortgage ect..

OP posts:
sprogger · 21/07/2008 08:55

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HarrietTheSpy · 20/07/2008 23:16

Well, one thing to worry about is what woodstock mentioned, a nanny who feels vindictive towards you in some way and rats on you. I guess this could happen if you have to dismiss her and she gets p'oed. Secondly, what do you do if your neighbor/whoever offers to do a share with you, you agree, and they start asking questions about tax arrangements/sharing allowances, etc.? Or you give a reference to a new family and the nanny can't produce a P45 for them? Or the nanny is gabbing to people at the school gates and lets it slip? Probably loads of people would do nothing, but some might.

beginnermum · 20/07/2008 22:19

I am quite new here, so my question might be , how can the inland revenue find out about people paying theur nannies cash in hand as there s no record ??

woodstock3 · 12/07/2008 17:01

well i pay my nanny's taxes because 1. it's fair to her (she'd struggle getting a mortgage if she was cash in hand 2.i am a scaredycat and convinced i'd get caught
and most pertinently 3. i dont ever want my nanny to have a grudge against me that she might take out on my child (not that i think incidentally she would) or take out by ratting on me to the taxman.
and as for a nanny being a luxury - well yes in the sense that a lot of people can't afford one and i know im lucky we (just about) can, but no in the sense that without one i couldn't work, given my hours.
i dont regard handing over more than half my salary for someone that just enables me to do a stressful job i dont much like, in order to pay the mortgage, as much of a luxury. it's not exactly champagne and oysters, is it?

jura · 09/07/2008 20:03

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squiffy · 09/07/2008 13:56

Well here in banking you work on probability of being caught (default probability) plus effect of what happens when you are caught (recovery rates) and whether or not you yourself would lose your own job if you got a criminal record (value-at-risk).

And when you calculate all that you turn round and pay your taxes like a good girl

TheBlonde · 09/07/2008 13:39

but how many people get caught?

imananny · 09/07/2008 07:42

assume you would get a record

ponders

obviously nannies have a crb to prove to parents that they are safe to leave their children with but - wonder how many parents if they had to have one, to prove to nanny that they are sane/safe to work for - what would show up on theirs?

1dilemma · 09/07/2008 01:02

Yes comes back to thread to add it's back tax/NI plus 3k fine.
Does anyone know do you get a criminal record too?

imananny · 08/07/2008 19:23

not sure i would say that a nanny is a luxury - more of an essential neccesity!!

no childcare, then no job for mb

and yes athene - unfort you would have to pay back tax and £3000 fine

nannyL · 08/07/2008 18:52

I'd never work for anyone who paid cash in hand.... because i NEED my payslips for my MORTGAGE!

nannyL · 08/07/2008 18:51

i think you have to pay tax owed plus £3k
ignoring comment about when I personally turn you in

FabioTheWhisperingCat · 08/07/2008 17:44

lol

AtheneNoctua · 08/07/2008 17:35

But the whole reason I had kids was so I could get rid of all my money.

FabioTheWhisperingCat · 08/07/2008 17:20

I think the idea is that you get some money to compensate, the insurance company pays out and she, er, has paid £60 a year for the privilege.

See here.

AtheneNoctua · 08/07/2008 17:19

You know, come to think of it, the 3k is way cheaper than the taxes. What sort of deterrant is that?

Athene ponders her own stupidity finances.

AtheneNoctua · 08/07/2008 17:17

What?!?!

If my nanny kills one of my children she won't need insure because she too will turn up dead.

FabioTheWhisperingCat · 08/07/2008 17:14

lol AN

Could be cheaper to pay cih and lie about start dates, then gamble on the fine.

See, you could always claim you paid your nanny less cih than you actually did.

Did you know nannies need to insure themselves against killing your children or getting them off their faces on too much calpol?

TheBlonde · 08/07/2008 17:10

ah okay
I reckon if you pay a ft live out nanny £400 pw net = £28K gross
in order to pay all relevant taxes, NI etc costs the employer £31K

If you earn £45K gross = approx £32.5K net leaving you with 1.5K after you have paid for the nanny

Pay for your travelcard to get to work and the payroll/insurance for the nanny and you have nothing left

AtheneNoctua · 08/07/2008 16:36

I want to know whether or not to add taxes to it. If net, there are taxes to add. If cih (cash inhand) then I just add 3k for when NannyL turns you in.

TheBlonde · 08/07/2008 16:27

I'm confused

AtheneNoctua · 08/07/2008 13:04

Now is that net or cih?

TheBlonde · 08/07/2008 12:51

net live out

AtheneNoctua · 08/07/2008 11:52

£400pw? You mean gross live-out, right?

TheBlonde · 08/07/2008 08:18

this is why I am still at home
to pay a nanny £400 net pw, £28K gross I would need to earn £45K just to break even
pay for a travelcard and there is about £450 quid left which I am sure would be swallowed up with payroll/insurance costs

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