FT article "Crackdown on cash-in-hand for nannies"

[MrAnchovy]

Here

MrA could you precis for us please? I don't subscribe

Thank you

It is not currently behind a PayWall, though I did notice that it was when I first got notification about it.

More about it on Monthly rather than Quarterly reporting.

Yes you can read it at the moment.

Also on the Telegraph and mentioned on Radio 4 this morning.

thank you both

so they are saying lots of parents don't operate PAYE for nannies, crikey

I wonder how they KNOW this, or it guesswork, plucking figures from the air. [ponders]

oh, re reading shows that changing jobs often throws up anomalies, sorry to be thick

Yes, it's when a nanny changes job and the new employer asks them for a P45 or to complete a P46 (as they don't have a P45 - not always due to the previous employer not deducting tax/ni).

I suspect that it's the things like the NI record that show up periods of time when someone has not had employment. That then prompts them to ask about previous employment and the nanny tells them what they did in the previous job.

yes, that makes sense Nick, thanks

Probably half the parents I know who employ nannies don't operate PAYE, just pay cash in hand. Mostly its just a cost thing, they just can't afford to pay the gross salary out of their take home pay.
None of the three nannies I've employed have had a P45 either!

Hi.

At last somethings being done about this.

Its taking me ages to find a job where the parents WILL pay the childcarer, the proper way.

Im forever explaining to parents that its illegall but will they listen, NO!

Blimey I don't know any nannies that get cash in hand.

Mind you I don't know any nannies that declare babysitting either.

redglow So if a nanny wanted to declare her income from occasional babysitting, lets say maybe £30 a month, what would she have to do? Register as self-employed/set up a limited company?

I don't get paid for babysitting as twice a week is included in my salary anyway but was just wondering.

I don't think any do I don't know how you would go about it. Obviously if I babysit for my employers it would just go straight on to my wages. I am sure someone will be along soon to tell us.

If you don't already fill in a tax return you should call HMRC and tell them you have income from babysitting, and about how much it is. They may then decide to send you a tax return at the end of the year so you can put your babysitting income in as 'other income'.

You do not need to register as self employed for occasional babysitting: there is of course a grey area between a couple of evenings a month for friends and setting up a babysitting service with a web site, adverts in the local paper etc. when you would need to register as self employed.