mileage payments to nanny

[lucy01]

We have a new nanny starting who will be using her own car for the school runs etc. How much mileage should we be paying her? Prefer to pay her per mile - any ideas welcome.

Thanks

inland revenue do a list which they update every year - it depends upon the cc of the car (for mine I think it's 40p a mile or similar). You need their advice as you'll need to keep track as her employer (I think it has to go on the end of year summary too).

at the moment for an average size car it's 40p for the first 10,000 miles (0.38p nett and 0.02p VAT) and then 25p thereafter (0.2375p nett and 0.0125p VAT)

As it's withing the government guidelines it doesn't have to go on the P11d - if you pay anything more than this you will have to declare it on this form as a benefit in kind.

Who has to pay that tax? Employee or employer.

Hi sweetheart... how are you? How's the bump?

In our company it's the employer - Not sure how it would work for self empoloyed people though??? I think you just pay her the 40p - it's just if you yourself are VAT registered then you can claim back the 0.02p.

Bump is fine thanks sweetie - getting very very big now. I'm on the 3 month countdown How are you and the bubba doing?

i get paid 40p a mile from work and i know that this is the limit without incurring paye implications - will probably go with that then. thanks

So glad all is well. My little man is fine... in fact he's perfect.

Sorry for hijacking, Lucy.

Great to hear Uwila!!

Yes sorry lucy

I pay my nanny 40p per mile, then we don't have to declare it or anything to taxman as it is assumed to be fine.
I guess if you pay more than the employee would be taxed on the excess as a benefit, and the employer would have to pay excess in employers tax. double whammy

The AA website has recommended mileage too. It's quite good coz it's actually broken down into constituent parts eg insurance, road tax, petrol, wear and tear, depreciation etc. We agreed to pay our nanny anything that would be greater by virtue of driving for us - ie petrol and wear and tear which, iirc, worked out at 39 pence. Does that make me a skin-flint?

No hatstand, you were already a skin-flint.

blumin cheek

We just gave our nanny £10 a week. I'm not sure how many miles etc she did, but it was quite simple! She drove her own car, so I guess that included depreciation too.

When i was a nanny i was paid 40p per mile (same as now i am a childminder)
Just be aware that she will have to have buisness insurance and you should make sure she has this. My employers paid this to me on top of my wages too, i think it was about £12 extra per month.