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Paid childcare

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PT nanny starting with another family and they want to share tax costs...

29 replies

nonuniform · 26/01/2009 20:47

So, my lovely nanny who looks after my kids after school was just working for me for £90 weekly.
I didn't need to pay tax on that, and the NI was covered by the tax office.

She has just started with another family and they have suggested that we all pay through a nanny tax agency and I think this means that we now "share " the tax burden between us.

As far s I can see now i will have to pay out more from my pocket as nanny will still get the £90 from me, but now if here total earnings go over £110 (i think it is) we will be liable for tax and NI and they expectt hat I will share that with them.

Am I being a bit mad or is this a bit bloody rich of them?

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tankie · 26/01/2009 20:58

I'm not sure how tax works - nannynick is good at this kind of thing! But if her earnings increase, wouldn't her tax code change so she does pay tax on everything?

nonuniform · 26/01/2009 20:54

No, the amount is too low, the tax office cover the NI.
So i decalre what I've paid her, but there are no extra costs to me other than the £90/ week.

She will now start earnign more with the other family and I suppose they will end up paying tax as now her earnigns are above £90.

OP posts:
tankie · 26/01/2009 20:50

Do you pay employers NI on the £90?

theresonlyme · 26/01/2009 20:49

It is a bit rich and if you don't want to do it, don't.

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