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Paid childcare

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

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:
Quattrocento · 06/07/2008 11:31

"Probably going to get even more that way with programmes like that Dom one that encourage people to go for maximum discount (although I notice he never suggests that people ask what deal they can get for cash)."

I've never seen the programme but of course he couldn't suggest that people ask what they can get for cash - because it's illegal.

I agree with the OP - the reason the employers do it is because they want to fiddle their taxes - it is grossly dishonest and unfair on the nanny for so many reasons.

phraedd · 06/07/2008 11:22

i only quote gross figures but because a lot (if not most) nannies quote in net figures, it makes my prices seem very high

nannyL · 06/07/2008 10:45

but nick if you are being paid partly in cash, it is NOT cash in hand.... its only cash in hand if the money isnt declared on your pay slip.

I refuse to be pid cash in hand.... an employer wanted my pay rise to be cash in hand and i said, sorry no, i want it done properly

If no nannies let it happen, it wouldnt happen!

nannynick · 06/07/2008 09:50

How the money is actually paid, isn't the issue though. If an employer and employee agree to having wages paid partly by BACs and partly in Cash that is fine.
I think that Janett is saying that 1/3 of the amount is not being declared as earnings - which is the problem. Is that right Janett?

SueW · 06/07/2008 09:46

I think there are some people for whom cash deals will always be a part of their lives and they offer it to everyone they deal with.

Probably going to get even more that way with programmes like that Dom one that encourage people to go for maximum discount (although I notice he never suggests that people ask what deal they can get for cash).

nannynick · 06/07/2008 09:30

I think it is largely due to nannies agreeing NET wages. That needs to stop.

When a nanny agrees a NET wage, the employer has to add on Employees Tax, Employees NI and Employers NI.

When a nanny agrees a GROSS wage, the employer has to add on Employers NI.

Not all employers understand that they DEDUCT Employees Tax and Employees NI from the GROSS wage. It isn't the employers money, it's the nannies.

If they had started working out if they could afford to pay the salary from the GROSS wage, rather than the NET wage, the additional payment to HMRC doesn't seem so high.

Is that making any sense? Does anyone else think that it is the NET v GROSS situation, or are there other reasons why employers want to pay cash in hand?

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