part time nannies - what to pay?

[ChrissieW]

I have two bosy, both at school and I am looking for a part-time live out Nanny to do pre and after school care 3 days a week (7.5hrs) and all day during holidays (30 hrs a week).
What is the going rate? I don't need a full blown Norland nanny as the boys are 7 and 8, but obviously want someone responsible and energetic who will take them out to the park, play with them at home, mediate their squabbles and cook good food.
Other questions: Do I pay NI and tax for a part time post?
What about annual leave? Do I pay them when we are away? Do she get paid holiday quota?

Depends where you are located... I'd say £8 to £12 gross per hour will be typical - with the upper amount in London.

Yes, you would need to operate PAYE if you pay above the LEL threshold (£97 per week) or if they have another job. Given the hours involved and the likely cost, then you will be over the LEL (during holiday periods) and thus will need to operate PAYE, paying Employers NI and deducting Employee Income Tax and Employee NI.
There are payroll companies who can help you do that - they typically charge a fee of £120ish a year - or you can do it all yourself.
calculator.kistax.com will give you figures to use for budgeting purposes. Use tax code BR if they are likely to have other employment. DO NOT AGREE A NET (Take Home) WAGE, that is so last century and can make thing complicated (tax codes vary during the year, thus take home pay will vary).

Annual leave is a minimum of 5.6 weeks - so 5.6x3 = 16.8 so round up to 17 days. This CAN include bank holidays which fall on a working day.

Yes, you pay them when you are away. You can dictate when they take their holiday - so you may want to try to request that they take holiday at the same time you are away.

You pay tax and NI if your nanny is working enough hours and earning enough to be eligable for them!

Pay would be the normal hourly rate for your area or perhaps daily rate if you want some full days? It all depends on what you mean by part time and whether you want a nanny or a mothers help? Not Norland trained; doesn't mean a nanny would not expect to be paid the going rate whether part or full time. before and after school care is often very hard to get a nanny to cover because it is very awkward hours and hard to fit another job in with it but as you want full cover in the school holidays it may be a more attractive proposition if the job were offered 'pro rata'. I would expect to be paid when my employer was away and to recieve holiday pay appropriate to the hours I was working.

hope this helps

Just thought, the holiday may be wrong as there are more hours worked at times than at other times. May thus be best to calculate holiday in Hours rather than days.

I think for holiday you would use the accrual system:

The holiday entitlement of 5.6 weeks is equivalent to 0.121 of the hours an employee works over a working year of 46.4 weeks, as detailed in the calculation below. As with the previous calculations, the 5.6 weeks have to be excluded from the calculation as you would not be present during those 5.6 weeks in order to accumulate annual leave.
The holiday entitlement for each hour worked is calculated as 0.121 of 60 minutes, which is 7.26 minutes holiday for each hour worked.
Therefore if someone has worked 10 hours, they would be entitled to 72.6 minutes paid holiday.
Calculation formula
5.6 holiday weeks ÷ 46.4 working weeks = 0.121
60 minutes x 0.121 = 7.26 minutes holiday entitlement per hour worked
7.26 minutes x 10 hours = 72.6 minutes holiday accrued for 10 hours work

Nannynick and Sunshinenanny thanks so much for your input. I was thinking of a pro rata rate incorporating the termly and holiday hours worked so that the pay would be the same monthly salary and so more manageable for both parties.
The holiday accrual system is very helpful thank you.