Contract help please.

[callaird]

I have just been given a copy of my contract.

I have asked for gross annual wage to be put in but my new boss has been told by her nanny tax company (don't know which one) that we need to put in what I have earnt to the end of this year, MB wants the year to run January to December.

This is not right is it?

We just have to put what I'll earn in a year right? Gross weekly wage times 52?

Does it affect anything if we put weekly net wage in brackets?

TIA

I think putting weekly net wage in brackets would be a waste of time and could complicate matters. Net wage can change with government policy on tax (eg there was a change last April). Contracts should say gross wage, whether that be weekly, monthly, annual is completely up to your employer. The wage should also be linked to the hours, so your hours should be included in the contrat.

They should also state how often that wage is paid, weekly or monthly, and then on what day eg if weekly then on the Friday or if monthly then on the last business day of the month.

It's a bit pointless pinpointing that the year will run from January until December unless it's only a 1 year contract of employment. Have you worked for them since January? Were you employed by anyone else since January? The Financial Year runs from April 6 to April 5, so any tax code will be paid with regard to how much you have earned in the financial year, not calendar year.

It's also a bit pointless saying what you will be paid retrospectively - it's been done already, can't be changed! If your wage has changed at all during the year it will then be inaccurate.

I just started with them this week.

I have earnt money this year but not a clue how much!

We have all the other stuff you mentioned in the contract.

I just thought that gross annual salary had nothing to do with any other employment. It was just how much I would earn a year, even if I don't stay a year.

Maybe I'll just ask her to put gross monthly wage!!

You're absolutely correct, gross annual wage is exactly that, what you would earn if you were with them if you were there for a year. Hence why pointless starting from January!!!

Have a bit of a search through old threads on this board about contract conditions. Some of the nannies on here have listed some brilliant things that really should be included.

I can't see how money you have already earned from other employments makes any difference. That's the whole point of agreeing a Gross salary - your tax code makes no difference. At first it may be a different code to what it later becomes but it doesn't affect how much it costs your employer - they pay Gross wage plus Employers NI. Taxcode affects what you get in your take home pay.

Is your boss sure they are talking to the nanny payroll company about Gross pay... maybe the payroll company think your boss wants to pay Net?

Have you given them a P45 from your last job, or completed a P46? Those forms are used to establish the starting taxcode. The P45 will contain information about past earning, which is then used as initial figures for the PAYE record.

If you complete a P46, then you start on an initial tax code and your tax office generates a P6 (tax coding notice) which tells your employer the tax code to use.

So... have you given in a P45, or completed a P46? You have to do one or the other and from whichever form, your employers payroll provider can start the PAYE process.

Maybe there is a GAP between you leaving a job and getting a P45 and starting this job. So the payroll company are interested to know earnings during that gap. I don't feel you have to tell them... you could just complete a P46 and send your current P45 to your tax office (there is info on the P45 form about what to do if you don't wish to give it to your new employer).
If you have been unemployed and got social security benefits, then contact job centre for a P45.

Some info from HMRC about P45, P46 forms and how your employer uses them.

What could happen is that you overpay tax. Which is fine in my view as at some point in the future, you get a refund from HMRC.

I just don't see how this affects the employer... maybe MrAnchovy will be able to enlighten me as if it does affect the employer what have I missed?