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Original poster

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.

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CHERBEAR1 · 12/08/2008 19:57

youcan get around this, i wanted to be a self-employed nanny though got told that you couldnt. i got offered a job with a lovley family though they didnt realise they had to pay my tax and ni. i said i will look into it. because it is only partime i would need to work for sumone else and thought it would be abit awkward with ni and tax. i looked into it and i am classed as a HOMECARER. in this case you can be a self employed nanny. i am also on the ofsted voluntary register which cost 1oopound a year but you are ofsted registered which looks good and you can a number like childminders for working tax credits ect.

Original poster
bluebear · 19/04/2005 10:01

MrsW - you have put my fears into words so perfectly! I do not want to end up with a huge tax bill as a 'surprise'...and TBH if I want to spend £8 per hour NET on a nanny I want one with qualifications,,,even if she has got great references.

Back to the drawing board.....

OP posts:
morningpaper · 19/04/2005 09:59

AFAIK there is no way to prove you are self employed (there used to be a certificate but this has been phased out now). However, if you draw up a contract that specified she is working on a self-employed basis (get legal advice for it) then I don't see what the problem is. Bear in mind you won't need to pay sick pay or holidays.

foxinsocks · 19/04/2005 09:57

yes I would be surprised if she met the definition especially as she has to do the work herself and can be told when and where she has to work although I suppose it's not technically impossible. You can ask for a ruling but if they rule against the self-employed status, you and all the other families would have to cough up!

You can ask your local tax office. They should have someone who specifically deals with self employed status.

MrsWobble · 19/04/2005 09:44

If she is working for a number of different families it is possible she could meet the definition of self employed. however, you should bear in mind that if she doesn't pay her tax/NI then the Inland Revenue can deem that you have paid her net and come after you for the money. I would not employ her on a self employed basis without proof from the IR that they accept her as self employed. I'm not sure if you can get such proof - but the risk to you is quite high otherwise - not just the potentially unpaid tax but also fines, interest charges etc. I'm sure the girl is honest and would not deliberately mess things up but tax is complicated and if she does make a mistake you are likely to be the one that pays.

Original poster
bluebear · 19/04/2005 09:40

Nannypaye website says that ' it is rare but not impossible for a nanny to be self-employed, so employers should check with the local tax office before employing them that they really are.'

So, it's possible, just complicated.

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Original poster
bluebear · 19/04/2005 09:29

Thanks FIS and NannyJo - she is def. not a registered childminder.
It's the nanny herself that wants to be in charge of her own tax/NI etc. She is doing a Business Cert. at evening school so might be non-plussed about the hassle involved.

I'll try nannypaye thanks - I would rather find someone else who I could pay like a 'normal' nanny than do something illegal.

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NannyJo · 19/04/2005 09:26

a nanny can be self employed, my boss tried to get me to do it cos it svaes them money. Ask someone like nannypaye about it. lot of hassle for nanny but both parties can benefit financially.

foxinsocks · 19/04/2005 09:24

if she's not a registered childminder (and it doesn't sound like she is), then I'm afraid she's a nanny and you should all be paying a portion of her NI etc.