Current rate for nanny?

[chams7]

I will be going back to work soon. I am planning to have a nanny for my two boys who are five years and six months. I will be working 4 days a week and want child care from 8am to 6pm. Please could anyone tell me to how much could I be expected to pay for this?

Could you give some basic location detail such as country, if you are in a city, town or rural. Also are you wanting someone experienced, qualified, or would you not mind someone doing their first nanny job?

We live in south west region, Kingston upon Thames. I am looking for someone with some experience and basic qualification.

You'd be looking at somewhere between £10 and £13ph I would think.

Possibly an employers market at the moment, so you may be able to start someone on a lower salary then increase it over the years.

£8-12 gross per hour I suspect would be a reasonable range.

As an experienced, qualified nanny working 4 days per week about a 20 minute journey from KonT I'm on about mid that range.

Work out the annual cost, include as many of the associated costs as you feel are reasonable so you get an idea of what it will cost you as the employer.

Lets say salary was £27,375 (that's about £10.50 an hour, based on a 50 hour working week).
These figures are all for 2012/13 tax year and based on nannies taxcode being 810L (which it might be, or might not).

Nannies income tax: £3854
Nannies NI: £2374
You would deduct these from your nannies Gross salary on their behalf and send the payments to HMRC.
Nanny takes home: £21,147

Employers NI: £2746
This you would pay to HMRC.

If you were to have a payroll company helping produce payslips, then they can charge around £135 a year.

The nanny will need some kind of activities budget... £5 per day perhaps. So £928 a year (year being 52 weeks minus 5.6 weeks).

There will be other costs that may or may not apply... for example if your nanny uses their own car for work purposes you may be paying the approved mileage rate of £0.45 per mile.

So I make your annual cost to be around £31,184 possibly higher.

I shouldn't rush doing message board posts... you are the one who wants 40 hour working week, not 50.

So the good news is that your costs will be a lower than the figures I gave.

Have a play with PAYE Calculator by MrAnchovy to get calculations for Gross annual salary, Employers NI.

£10.50 per hour... 40 hour week = £21,900
Employers NI (in 20012/13 tax year) = £1,991
The activity kitty cost was right for 4 days = £928
Payroll agency (if you don't want to do that yourself) = £135
Total £24,954

It's important to remember though that figures like 'activity kitty' could be a quarter or what nannynick quotes or less. That's a very subjective figure and depends on where you are (within walking distance to activities or would you need to include travel costs, how many free activities do you have nearby etc) and also what you want your children to do within the day. Also, if you have been off work with them and taking them to activities yourself this won't be an added expense as the nanny will just continue to take them to places/activities they already go to.

Very true Holy, the nanny kitty could vary considerably, plus I don't include travel costs which can be high in some areas and low in others. For example, Museums are free in some areas and not in others and even if the museum is free, it may cost quite a lot to get there and back again. Some children will spend hours playing in a park or playground, whilst others will bore quickly and moan about being cold.

It's very hard to calculate typical costs, as things can vary so much. So one way to get a feel for what costs might be incurred by a nanny, is to keep track of what costs are being paid out whilst being a SAHM.

i employed a nanny in East Finchleyl London in 2008 and was paying £10/11 net per hour for a 44 hour - plus tax and NI
wsa this a lot, or have wages gone down?

when I last nannied (2010), I was on £15 per hour gross so wages must have gone down

I think salaries may have gone down or remained stagnant. There will be pockets of London where salaries will be high for experienced nannies. However there could be a lot of applicants for any job, with the level of training and experience of those applicants varying, thus a lot of choice for parents. Outside of London, I knew a parent who advertised for a nanny in the summer and got over 50 applicants. I think it may well be an employers market at the moment, so parents can name the price they wish to pay and see what applicants they get.

Any nannies in West London want to say what sort of salaries are typical this year?

£10 per/hr net is my rate
£15 per/hr net overtime

Central/ west London

i'm on £12 net pet hour central/west london

By Central/West do you mean Chiswick, Hammersmith, or closer in to central London?

Please do try to give Gross figures as it is more useful to parents, as parents won't know for certain what their nannies taxcode will be.

I pay my 2 day week nanny £12.50 gross, south west london.

I pay £14/hr gross west London for a demanding job of 3 children under 5. My nanny is very experienced (25 yrs) and ofsted registered.

There is a new nannytax salary survey out which says that central London wages for nannies are flat this year and slightly down outside London.... In fact I think it says central London live out may be up 1pct

I pay current exp 10 year nanny £10/hour net. Previous nanny with only a year nursery experience £8.50/hour net. Previous nanny to that £9/hour, but I put it up to £10/hour after i had my third child.

We've just placed nannies in:

1. Richmond - £13.50 GROSS - 50hrs - 5yrs nursery exp, 18mths as a nanny, obviously 1st aid & CRB, willing to become OFSTED registered.

1. Wimbledon - £12.05 GROSS - 40hrs - 3yrs nanny exp - 1st aid & CRB, OFSTED registered.

1. Croydon - £13 GROSS - 40hrs - 5yrs nanny exp - 1st aid & CRB, OFSTED registered.

I think this just goes to show how varied salary offers and expectations can be!

We pay £10/hr net in SW London

Thank you all so much for all your input and feed back. I am interviewing one tomorrow so let's see how it goes.

Can I be cheeky and ask, what site to use to calculate the nanny tax code?

You don't calucluate the tax code. If she gives you a P45 it is shown on that, otherwise you get her to sign a form (your payroll agency will give you a P46 or you can download one from HMRC) to say whether she has another job. If she does not, she will be allocated the code 747L (810L from April) and she can earn £143.75 a week before she pays tax, if she does have another job she will be allocated the code BR which means that she pays 20% tax on the whole of her earnings - that is why it is important to agree a gross salary, particularly for part-timers.

We live in Bromley, which I would imagine is the SE London equivalent of where you are in SW London.

For an experienced, qualified nanny, I pay £10.85/hour (gross) and we have an absolutely wonderful nanny who we reward in other ways on top of basic salary.

To add to nannynick's analysis of what you might pay, you may want to include discretionary things like birthday and Christmas gifts, and any bonus that you may think about paying. Obviously not compulsory for everyone, but it should form part of your budget if you re thinking of spending along these lines on your nanny too.

By central/west I mean anywhere from chiswick/hammersmith through to Chelsea/ Kensington

My full time job is Kensington based. As an experienced nanny I still prefer talking net as a I can easily work out my wage and b so many parents say its more expensive that others if I say
£13 gross compared to £10 net for example.