How do we make this legal?

[PossibleChildcarer]

A friend is going back to work and has offered a nominal sum for me to mind their cild one day a week.

How do we make this legal ASAP?

I was thinking of going to nannyinsure/nannytax and doing that, which from what I understand is about a week turnaround? So then I am registered as a nanny, no need for ofsted at this stage as just doing this for a friend.

Do I need a crb? How do I go about that?

If all goes well, in the future I would look to set up as a CM, but do not have the funds required atm for the first aid and training. I would probably put any earnings for this job towards that. Once my youngest goes to school I could then go full time CM.

ATM though it really is the basics to cover us legally as quickly as possible.

Thanks!

Also, sorry, is there a contract or something we can just print out, fill in times/dates/rate of pay and sign?

Ok, if I worked in her home, what would we need to do?

If I set up as a cm, could I look after her child and not get paid until i am registered, and then back charge? Or get her to pay my costs in leiu of charging er?

*her

Just work in her home as a nanny. You don't have to do anything to set up for that. Just make sure you pay tax and you can charge normal nanny rates.

As a cm, just make sure you're registered.

I think if she is a good friend who trust you and you trust her, then the two of you can do as you please in the short term (I did and now use a cm and all is fine and was absolutely the right decision for me).

You work in her home as a nanny you don't need to do anything. It doesn't even need to go through PAYE if you earn less that the threshold per week (assuming you don't have another job) so you agree a gross wage of less than £97/week currently or £102/week from April and it's all sorted.

I'd advise you getting insurance still (prefer Morton Michel over nannyinsure personally) and if you plan to transport her DC in your car ensure that your car insurance will cover you.

What you need to include in a written statement of employment (aka a contract) is here.

You can't CM until you're registered but you can certainly get the ball rolling by talking to your EY team etc about the courses you need to do whilst nannying. It's very often free to train if you're going through the registration process but it varies from area to area.

Thanks for all the info.

So, does she need to register as an employer? She is thinking of doing this and again putting a nominal amount through for NI for me.

If I wanted to pick up another day from another friend (also a possibility!!) would I do a seperate contract through her as well? (Just to be all above board and legit)

I would declare taxes through employee route wouldnt I?

I really really want this to be all above board as if I get it wrong there are big risks!! LOL I do not want to go to jail!!

Yes the 2 jobs would be separate contracts. If you have more than one job you need to declare it on the P46 you fill in when you start a new job.

They do your taxes on your behalf.

If she pays above the threshold then she needs to register as an employer and deduct tax and NI on your behalf, and most probably pay employer's NI.

OR if you have more than one job then one would use your tax free allowance and in the other job you would pay tax and NI, both employers would have to operate PAYE but depending on the amounts may not have to fork out for employer's NI.

It's difficult to illustrate without actual figures! There isn't really 'a nominal amount' of NI as it's worked out as a function of your earnings. You, personally, can choose to make voluntary NI contributions (e.g. if you're not working or haven't worked enough you can top it up) but that would come out of your pocket.

Thank you again!

The first job would be about £50 per week.

The second would be about £40.

The first employer would not have to register as an employer and there would be no tax or NI to pay (because below £97 a week).

The second employer would have to register as an employer because you already have another job. There will still be no NI to pay (because NI is worked out separately for each job) but they will have to deduct tax at 20% i.e. £8 per week. This will leave you overpaying tax and you will have to ask HMRC to do something about it (they should give the second employer a special tax code to use, but might want to refund you at the end of the year instead). You can start this process here.

Because you are under the NI threshold in both jobs you will not qualify for related benefits or accrue pension entitlement.

Because of all these complications and your long-term plans I am going to suggest an unusual solution. If you call the HMRC using the contact on this page and say that you intend to set up business as a childminder, but will also do some work in the children's homes, they will probably agree to you registering as self employed. You will then pay Class 2 NI contributions (do NOT claim the Small Earnings Exemption) which are only £130 a year. You should not then sign a nanny contract, and you will have to explain the situation to your insurers (I think some will automatically cover you for both nannying and childminding, but you need to check).

Thank you, that is very helpful! So do I set up a CM contract with the two friends? And then as I put away enough money, I can then do the first aid and training etc once I have the CM pack? So initially a self employed nanny and then a cm?

And asI am self employed I charge a flat rate and put aside tax to pay and make my own NI contributions?

No, not a nanny then a childinder, it is important that this is all part of a single business as (if you like) a self employed child care professional. Yes the contract should look very much like a CM contract, although tailored to suit the fact that it is in the children's homes not yours (for the time being).

Yes as a self-employed person you can charge however you like and you pay your own tax and NI, although at £90 a week there will be no income tax or Class 4 NI to pay, just the £130 a year Class 2 which you can pay quarterly.

Bear in mind that as you will not be using your own home you cannot claim for most 'normal' childminding expenses (10% wear and tear etc.) for that part of the business, although unlike an employee you can claim for travel to and from your clients.

Note that all of this is dependent on HMRC continuing to accept that all your child care work is part of a genuine business. This may depend on you offering 'normal' childminding at your home as well so you should look at advertising for some 8+ holiday/after school clients and anything else you can do before you get a registration.