To employ my SIL as a nanny/house help?

[Pumpertrumper]

So I’m not coping. I have a 10 month old, am pregnant and DH is a critical worker gone all the hours under the sun.

My lovely SIL is a student and registered child minder assistant, due to covid she’s struggling to find any job. I see a fantastic opportunity for us to employ her on a PT basis until she can secure a grad job.

She would happily help out for free (has said this repeatedly). We are good friends too but I would only feel right doing it officially. It’s also right she gets paid as is struggling without a PT job.

My question is given we want to employ her flexibly (so she can still uni as needed) and I’m already not coping (so the thought of working out tax/payslips/payroll/holiday allowance/sick leave is SOOO daunting) Is there a way we can just pay her a set amount, she can put it in her savings and it not cause either of us masses of paperwork or liabilities?

I can’t imagine everyone with a baby sitter/pt nanny/mothers help goes through all the official government hiring process (it looks like it’s aimed at proper companies).

Please be kind. I have money I want to pay her, she’s a struggling student wanting to earn. We are just trying to help each other out in a difficult time.

@Pumpertrumper OP it's fine, as long as you're not paying more than £120 a week, you don't need to register as employer. Your house insurance will be able to sort out employer liability insurance.

You can still give her a contract and everything to make it legal and put in that you're paying £8.20 an hour for 14 hours.

Its all here:
[https://www.gov.uk/paye-for-employers]]

Given that she’s offered to help for free, let her help but keep a tally of the hours then give her a lump-sum ‘gift’ when you don’t need her any more. This will ease any awkwardness or sense of obligation on her side if she thinks she’s helping as a friend/relation and will be a nice surprise for her in a few months.

You are employing her, she needs a contract and to be paid properly

@Doffodils

If it's only a few hous pw at min wage and her only job, no tax will be due, so does OP need to worry about it?

Yes, OP does need to worry about it. She is an employer and will need to register her employee for tax and NI, even if non are payable.

I’d not over think it. You’re pregnant, looking after a baby and your partner is working all hours. Right now, life is about survival. If you get a knock on the door (which you won’t), your SIL is providing informal childcare . She will be under the tax threshold and it’s on a temporary basis. Go for it OP.

@BlingLoving

You will get a million people on here telling you of course you must do it formally etc ec etc. but honestly, I'm struggling to see why you can't just pay her cash. It's a few hours a week, she's family etc.

A bigger issue of course is that employing family in any capacity can get complicated in terms of performance management etc. But if you're confident that's not going to be a problem, then just go for it.

Agree with this.

I’d pay her cash. I’d also count her as your childcare bubble, which I think you can do if you have a child under 1, whether you work or not.

If the police happen to knock when she’s there, she’s your childcare bubble. If the police happen to knock when your DM is there, then your DM is your childcare bubble.

If your DM lives alone, then I don’t think you’d be breaking any rules anyway

those of you saying shell be under the tax threshold, has she not worked for the past 11 months? its not just the ops money she will need to declare, its all her earnings for the whole financial year.

As it’s for a brief period of time and under the threshold just pay her cash for ease. If this was a longer term arrangement and needed to be formalised I would suggest differently.

Op you are making this way too complicated-just pay her cash in hand and lay out her duties and expectations before she starts. The police barely come out for murders these days and you worry they will knock on your door over £900 cash

Just gift her cash for helping you out. I wouldn’t bother with sick pay / tax etc

You need to do it properly.

Because you’ve had tons of threads on here and you take a lot of help but no advise. .

You want people there helping for free every hour you’re awake. You’ve had both mothers running after you, including one who was caring for a person with cancer, your house is unsanitary and falling down round you, you have hyperemesis and you live in a huge house in the country.

If she does it it’s a flipping family fall out waiting to happen.

*advice

What you do depends on whether you are personally comfortable with the risk that you may be caught by HMRC or not.

If you call it babysitting and its ad-hoc (a few hours a week which may vary week by week) then paying cash is reasonable.

If you give her an employment contract which sets out formal fixed hours of work and dictates what she can/can't do then you also need to set up a payroll for her and do everything by the book including agreeing holiday and sick.pay and you'll need employer's liability insurance. Its not just her personal tax to think about but also NICs have to be accounted for and you'd have to set up a pension. Its a lot of hassle for a 3 month short term arrangement so if I were you I'd go with her being a babysitter but be prepared that you can't then dictate her work. If she's not your employee you can't call the shots if wants to have a few days off or wants to change the hours she offers to you.

I’m bewildered by this. Pay her cash! And expect it to change the dynamics of your relationship...

Give her cash and don't discuss it with anyone else.

Would probably be around 14-16 hours a week fwiw and minimum wage for her age is £8.20.

She deserves more than minimum wage if she’s looking after your child.

Cash in hand? Isn't that what it's for?

Plus, you need to pay her more than 8.20 an hour

You can gift people 3k per year tax free - would she accept a gift if it's only for 3 months?

She deserves more than minimum wage if she’s looking after your child

Why? She's a student with no experience or qualifications. What do you think the going rate for nursery staff is?

And basically this thread should be titled

“How do i commit tax fraud and not get caught”

Which I don’t think should really be allowed. That’s dodgy as fuck. What other laws do you break on a regular basis just because they’re a bit awkward?

Intrigued by Limmn's rather unsympathetic response! Though I am not familiar with the details. Without knowing a broader history I'd agree with people who are saying don't overthink it, it makes sense for both of you and CIH keeps it simple.

Cash in hand. Why go to all that bother for such a small amount. She won't even be due to pay tax or NI.

I have to pay tax.

I pay an accountant to do it for me because I find it hard to work out.

The op wants to dodge tax and national insurance coz woe is her it’s hard to work out.

She needs liability insurance if she’s paying her SIL. For a start.

The SIL needs to declare to her car insurance that she’s using her car for work if she’s taking the baby out in it, or just change it to commuting if not.

@Llmmnn it’s not normal to be this angry about the life of a complete stranger!