To want affordable childcare?

[Mauler]

Hi - would welcome opinions on this situation please.

Due to return to work later this year. Going back full time but aiming to use accrued holiday to work 4 days. 1 day is being covered by grandparents in terms of childcare.

DS (3.5 years) and DD (10 months) will need care 3 days a week. No local childminders will cover the preschool he attends so we have decided to look at a nanny,

DS will be at preschool for these 3 days - some a half day session the rest will be full days. DD will need full time care for 3 days.

Found two lovely nannies who we are both comfortable with. I appreciate a nanny is expensive in comparison to a childminder and I know we are paying for convenience.

The additional expense of employing a payroll company and employers NI are pushing costs to £1.2k per month and this is before paying expenses and holiday.

So - down to final two ... Two different options of payment (employed vs self employed) - we are really in a quandary. Has anyone else been in a similar situation?

A nanny can't be self employed unless they are looking after 3 or more families. How many hours a day would you be having a nanny for and where in the country are you?

So why use the pre school? Just go for a child minder

A nanny can't be self-employed, childminders are self-employed.

Yep, nanny is employee, can't be SE.

Self employed nannies, accepted by HMRC as such, are very rare. Do ask to see confirmation and don't hesitate to ask HMRC for guidance on whether the nanny position you are offering may be filled by a self employed person.

If you are found to have avoided tax regs even if you've been mis-guided, the penalties can be onerous.

If you Have set days and hours then your nanny needs to be employed by yourself

A nanny can be se and employed so if she is claiming she is se that's fine for her other work but not for your family

A nwoc can make the situation a bit cheaper

Regarding preschool - it's been the one constant for him since me going back to work from when I had him and before my daughter. He's due to go to school next September so I would prefer to keep him in the same setting.

Regarding hours - same start time on the three days but finish time could vary depending on our workloads. Further, additional days may be required ad hoc. I think the SE option is because she works for another temporary family and also at a crèche in a local gym.

HMRC Ssid anyone can be self employed - felt like asking them to double check their website because it did say you'd need agreement from them and most nannies are not classed as SE.

You ANBU to want affordable childcare, but having a nanny to have one child most of the time, with preschool on top, is a bit like booking a caribbean cruise and then complaining that holidays are expensive!

Sounds reasonable to me. We pay for 3 days nursey for 1 under 2 and it's £850 a month. We are in SE though. For 2 it will be around £1400 a month.

Thabks everyone for input. Will check again with hmrc in the morning and then go from there