Me again.
We have just chosen a new sole charge nanny for our daughters. This will be the first time we have been sole employers of a nanny (previously we have been teh second family in a share).
We have yet to agree a contract with the nanny who starts in a few weeks. She will be working a 41 hour week for a net payment of £10 an hour. She has suggested we might only declare 20 hours a week for tax and NI purposes. This would save us approx £70 a week. The reason she came-up with this idea is she wanted to take the girls to various local music and dance classes which are expensive. I said I was not sure we would be able to afford these classes and she suggested the tax solution. In her opinion it would not harm her as long as some tax is being paid in her name.
What do people think of this suggestion? Obivouly we are tempted as the girls would love to attend the classes.