Hourly rates - is it gross or net??

[cloudydaze]

Hi,
I'm looking at getting someone to help me in the afternoons with my children and what I was wondering is when people talk about the hourly rate is it generally gross or net? I know what the going rate is in London where we live but I am just not sure if that is a gross or net rate.
Many thanks

We talk Gross on here.

However often people still talk Net. So best to ask anyone suggesting a figure if they mean Net or Gross.

Thanks v much for responding, much appreciated!

most nannies (not on MN) seem to still refer to net as that is what they are taking home

Unfortunally most agencies still talk and advertise jobs as nett, thus making it harder for nannies to talk about gross

So is it best to agree the net rate & then basically work backwards to calculate the gross rate?

Agree a gross rate and say that it would be x amount based on a single person's taxcode, only job. PAYE Calculator

The problem you will have with a part-time job is that the person may have another job, thus it could affect the Net pay alot.

For example: lets say you want someone to work 1pm to 6pm @ 10 gross per hour. That's £250 a week gross.
Total cost to employer is £13,973 if taxcode 647L. Net pay £209 per week.

If you agree net pay of £209 a week and the taxcode was BR, then it would be £16056 cost to employer.

You in effect pay over £2000 a year more because their tax code changed.

Taxcodes change during the year as it is, such as following The Budget.
If someone has another job it's worse because their other job may be using all of the Personal Allowance.

So contract wise, ALWAYS agree a Gross amount... so that taxcode changes do not affect that Gross amount. That way you know that you will be paying Gross amount plus Employers NI.

Not sure I'm explaining this all that well. Do you understand how PAYE works? For example, do you understand that an individuals taxcoding determines how much Income Tax you deduct from their gross salary and send to the taxman.
Net pay is after all deductions... whereas Gross pay is before deductions.