Please or to access all these features

Paid childcare

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

Self-employed Nanny - Is this legal?

34 replies

bluebear · 19/04/2005 09:08

Looking for some advice from experienced nanny employers.
I interviewed a 'nanny' last night (the '' are because she has no childcare qualifications, but she has a lot of experience and was highly recommended by a neighbour).
I had been told her rate was £8 per hour which is standard net pay for this area for qualified nannies.
On discussing this at interview she has said that she is 'self-employed' and therefore the £8 is effectively her gross pay, as she will be paying her own NI/tax out of it.
From my point of view it sounds good, as it makes her much much cheaper than I thought - but I was wondering if it was legal - I know that as an employer I would be expecting to pay employers NI as well as employees so should I still budget for that?
She is going to be employed by more than one family, so she fits the 'sole trader' inland rev. descripton...I'm just a bit concerned.

BTW she says she wants to be responsbile for her own NI/tax as her previous employers didn't pay hers so now she cannot claim Jobseeker's allowance etc. when her contract terminates - I felt really sorry for her.

OP posts:
Are your children’s vaccines up to date?
New posts on this thread. Refresh page
Millarkie · 14/08/2008 18:23

Thank goodness for that! Glad you are calmer. As to the experience thing - I was misled by my neighbour who was singing this person's praises - it turned out that the neighbour was thinking that she could 'borrow' the nanny for about 10 hours a week whilst I paid nanny for 8-6 - meaning that neighbour would have afterschool care on the cheap without the worry of paying nanny a living wage, taxes, NI etc. (It was neighbour's friend who was the former employer who said that they had paid the tax/NI but actually hadn't!)

botherednanny · 14/08/2008 14:00

I assure everyone I am a temple of calm now, honest guv'nor

SimpleAsABC · 14/08/2008 12:32

Take a deep breath bothered nanny...

botherednanny · 14/08/2008 11:09

fair enough but to be fair, you did state she had "lots of experience" which is obviously not 2 years au pairing+1 years sole charge lol.
Obviously you touched a raw nerve+I did apologise for my rant!
Who is this CHERBEAR anywhoo+why is she dragging up posts+making me look silly, eh, eh?

imananny · 14/08/2008 09:14

blame cherbear - she seems to like dragging up old posts

still dont understand,how a nanny can be se if they work regular hours

Millarkie · 13/08/2008 21:49

BotheredNanny - Calm down dear - the first post on this thread is 3 years old! No one is calling you a nanny wannabe.

The quote about the interviewee not having qualifications was I felt, relevant, as the pay quoted (back then) was the amount which would have been due for an experienced NNEB/NVQ3 or equivalent rather than the 2 years of shared care au pair experience and 1 year of cash-in-hand sole charge nannying with no first aid cert etc that this candidate had. And the '' were partlyl because I had doubts about how she could be a professional nanny when she had the idea that she could be self-employed.
She didn't get the job by the way, partly due to her insistence on being self-employed but mainly on her lack of interaction with kids at interview.

I do seem to be good at annoying nannys on mumsnet - good thing I only have 2 weeks as a nanny employer to go I guess

Back to 2008 please.

botherednanny · 13/08/2008 21:30

I have nothing helpful to add to this but just wanted that a nanny with lots of experience but no qualifications shouldn't be demoted to being a "nanny"... really winds me up when people think that qualifications are the be all and end all

... HOWEVER, I am not saying that qualifications aren't important (they clearly are as I'm currently completing an NVQ3 alongside my full time job lol) but I hate that some people might think I'm some nanny wannabe because all I have is a measely 8 years of experience

that is all. sorry for the rant

Emily23 · 13/08/2008 19:31

For the tax year just gone, I was employed and self employed. On the tax return, there is a section for employment earnings, and I sent them copies of my p60s/p45. This seems the easiest way, then they can refund/ask for more tax.

It's a minefield!!

jura · 13/08/2008 17:04

This reply has been deleted

Message withdrawn at poster's request.

MatNanPlus · 13/08/2008 15:28

You can be both employed and self employed in a tax yr and would guess you could split or allocate your Personal Tax Allowance to reflect this?

MatNanPlus · 13/08/2008 15:26

"By nannydd on Wed 13-Aug-08 07:32:38
I work regular hours for some famlies"

"By jura on Wed 13-Aug-08 08:33:15
If you work regular hours for some families then that element of your work should be as an employee, unless it's on a temporary basis, surely?"

my thought to Jura

jura · 13/08/2008 08:33

This reply has been deleted

Message withdrawn at poster's request.

nannydd · 13/08/2008 07:32

I am a self employed nanny, and have been for over 3yrs, I am on the Voluntary Childcare Register, I have an accountant, i pay my own tax and NI, plus insurance and membership fee'e and all these poeple know I am self employed. Like Emily23 I'd like holiday and sick pay would be nice, but the pros certainly do outdo the con's for me.
I work regular hours for some famlies and at hoc for others,
It works well for me and the families I work, as they can not afford a full time nanny or even a perminate one, so this keeps everyone happy and me in regular work.

Emily23 · 13/08/2008 07:05

I am a SE nanny. I work for 4 different families, working around my commitments. So I decide when I am available to work. The work is not at the same times each week. I also pick up temp work.

I have found this very easy. Holidays and sick pay would obviously be nice, but the pros outdo the cons for me.

imananny · 13/08/2008 00:08

matnan - you are se as thats beacuse you are a MN

thing is different people tell you different things at the tax office - hence why if a nanny asks and is told, it is better to have it in writing that they can be se, so if things ever came to a head, they have some proof

I personally cant think why anyone/ a nanny really wants to be se - yes you can claim back items on tax,but you also dont get paid for illness or holidays (hubby is se ) and it can truely be a bugger

nbee84 · 12/08/2008 22:14

Yes - a Maternity Nurse is nearly always SE - you are quite right about that and that as a nanny it is very difficult to be so.

MatNanPlus · 12/08/2008 22:01

nope a SE Nanny as i was told is a non starter.

I was told you CAN BE if you care for families on an ad hoc basis like airline staff/temporary work staff like hospital bank staff with differing days/hours etc and have more than 1 family involved.

This was told to me 2 yrs ago, when i was enquiring about the differing perceptions of being a SE person in the childcare field.

MatNanPlus · 12/08/2008 21:57

I am a SE Maternity Nurse as each contract is different to the next be it :
place of work,
hours,
days,
responsibilities
or renumeration.

I have been since 2003 after 14yrs as a employed nanny.

I have spoken to HMRC bods in different offices at different times with queries and all have been happy with my status, none have offered or asked for a status letter.

I am listed on my SE return as a Maternity Nurse with no issues.

imananny · 12/08/2008 21:48

a nanny CAN *NOT be se unless a temp/mn and even then you/they will need a letter from a status officer decaring that she can

if she is working for you and YOU choose the hours and days, ie mon - wed 8-6 then you are the employer and she is the employee!!!

a se nanny will decide whether they want to work that day or not - so unless you want your nanny to turn round and say, she isnt coming into work tomorrow, then she is employed by you

cherbear -I am also intrigued how/why you are se - if you work for a family on a regular basis

a few years ago,they were trying to make nannies to become a company and then they could save their employers tax, but it never came off - some legal loophole - do you remember that Nick?

phraedd · 12/08/2008 21:08

If you are choosing her days and hours then that makes you her employer.

I am a self employed nanny (amongst other things)but i choose who i work for and when.

jura · 12/08/2008 20:36

This reply has been deleted

Message withdrawn at poster's request.

nannynick · 12/08/2008 20:17

cheeky

Mind you, could be interesting if HMRC are accepting Home Childcarer on the Self Employment paperwork and not querying it. If that form gets through the system, then the person is choosing to be self-employed, and as long as HMRC never check up on it, there isn't an issue for anyone. HMRC are happy as they get paid, nanny is happy as they get paid, employer is happy as they don't pay Employers NI. Hmm... is HMRC happy losing that payment?

nbee84 · 12/08/2008 20:08

Speak of the devil

nannynick · 12/08/2008 20:06

Cherbear, alas it isn't that simple. Any nanny who is Ofsted registered is classed as a Home Childcarer. But that's not a taxation class, it's just what Ofsted are calling people on the scheme.
Did you actually speak with a status officer at HMRC? Was it due to the circumstances of your particular job - such as perhaps being ad-hoc, that made it possible to be Self Employed status?

nbee84 · 12/08/2008 20:03

I think you still need to check this out further.

I am an Ofsted registered nanny and all ofsted registered nannies will be registered as a 'homecarer'.

There are quite a few issues surrounding nannies and self employed status. If you are working for one family regularly on set days each week you cannot be self employed. nannynick, I think, has more information on all of this.

Swipe left for the next trending thread