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Nanny didn't tell us about other job...

52 replies

revellish · 26/04/2012 10:11

Hi parents,

We had signed a contract with our new nanny and two weeks after that she told us that she has another job and we can't make use of any of her tax-free allowance and we will have to pay basic rate of tax on her net pay, which is 20%, which significantly increases her monthly salary (by about £170-£180 approximately). I am quite annoyed that we will have to absorb this cost as it is quite a massive difference. What should I do? She should have told us about her other job and I feel like I have been deceived. Any advice?

Thanks!

OP posts:
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BikeRunSki · 26/04/2012 10:13

Did you ask her?

revellish · 26/04/2012 10:14

No we didn't, but when we were discussing salary she told us that we would have the benefit of all of her tax-free allowance.

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revellish · 26/04/2012 10:15

I think that I would also expect that she should have told us anyway out of honesty's sake?

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Gigondas · 26/04/2012 10:17

And is there anything on your contract about other jobs, tax rate? Our nanny contract states no other work without our permission.

Also presumably she is still in probation - I would be tempted to look again as not only is it a cost but it's quite a fundamental thing not to mention. Yes you could ask but to be honest it's something she should disclose. I have had people at interview ask about things like course commitments - not to mention another job is a bit Hmm

Gigondas · 26/04/2012 10:17

So she lied. Big warning bells here

Iggly · 26/04/2012 10:18

Have you agreed her salary on a net basis?

Ideally you should agree on a gross basis and this goes away. It's not your tax allowance to use, it's hers. When there are two employers it should be done such that her income is taken in totality and the allowance is split iyswim.

I'd consider renegotiating on a gross basis then you only worry about your gross costs and issues about allowances are not your problem (I have a nanny who has another job).

Gigondas · 26/04/2012 10:18

Also did you not agree a gross wage? In which case wouldn't matter

Ladymuck · 26/04/2012 10:19

Why did you agree a net salary? Very unusual in this day and age. Just go back and say, sorry, here is the gross salary which we can offer you - your tax position is your problem (as it is for any other employee).

If she can't do the hours you want, well that is different.

But she isn't going to find another 2nd employer who is going to pay above the going rate for her simply because she already has another job. Why would they?

Iggly · 26/04/2012 10:19

Actually scrap that, I'd find a new nanny!

Gigondas · 26/04/2012 10:21

Agree with iggly. Also the net issue may be thin end of wedge- there is another thread on here about when 2 jobs don't work. I would be inclined to think you could end up in same position (ESP as didnt tell you about other job- I can't really get past that).

catepilarr · 26/04/2012 10:22

oh, thats a hard way to learn that you should agree wages in gross :(

i dont know much about beeing an employer ( i am not one) or taxes, but why can you suddenly not have the tax/free allowance? does you contract say anything about it? is it another nanny job she's got? perhaps she is trying to play around as the hypothetical family perhaps said they dont want to pay the tax?

i am sure there will be someone soon who knows and hopefully will be able to help you .

revellish · 26/04/2012 10:26

Yeah, Gigondas, I think I agree, she lied. She said that it was because she didn't want us to think that she couldn't manage everything. We don't have any thing in the contract about it. But she told us that she was looking for another nanny job (we only have her for 2 days a week) for the rest of the week, which is fine. But during the time that she was looking for a second nanny job she told us that at the weekend she works in a shop too. (Which is why she didn't want to tell us because we might worry that she couldn't manage everything.)

Iggly we agreed a gross salary in her contract. (But we worked it out by 'grossing up' a net salary, if that makes sense. I mean, we agreed an hourly net rate which gave her weekly and monthly salary and then grossed up assuming normal rate of tax.)

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hattifattner · 26/04/2012 10:26

speak to her about her preference

Either - Renegotiate her salary so that you can afford her
or
Let her go and find another nanny that you can afford.

SHe has deceived you. How many other things will she deceive you about?

Gigondas · 26/04/2012 10:29

I am confused- If it's gross in contract then that's what you stick to. It's her look out if tax coding is such that doesn't get what she thought.

I would agree that seems like too much on and let her go. There are lots of good nannies out there.

HSMM · 26/04/2012 10:29

If you have a gross salary in her contract, then that is what you should use.

I would be more worried about what else she hasn't told you.

Iggly · 26/04/2012 10:29

Yes makes sense - that's what we did with our nanny just so she knew the net equivalent. But I made it clear it was gross. But as you've agreed a gross salary, then that's what you pay and it's her problem that she gets less. For example when the tax rates change, I don't adjust our nanny's salary to keep the net position the same, her net pay just changes. Also when she got a new job after we reduced her hours, I didn't adjust the tax - her salary is gross and her other employer just had to tell HMRC.

zipzap · 26/04/2012 10:31

I would be tempted to tell her tough, we agreed what we would pay you and you told us about the tax - if you have used it up then sorry, but we're not giving you more, you knew what we were going to pay you.

and then see what she says...

StillSquiffy · 26/04/2012 10:35

Tell her that with her having two jobs it is impossible to keep on top of the tax situation and therefore you will be paying her the same gross salary you agreed but will now have to reduce her net to account for the tax difference.

Note the words Tell her. This isn't for her to dictate terms. If she is not happy then you need to suggest she looks for another job.

If she's like this at the start of the job you do realise it doesn't bode well?

HolyCameraConfusionBatman · 26/04/2012 10:45

You agreed a gross salary, pay her that. There's really no problem for you, the problem is for her.

I also think the 'find another nanny', 'get rid of her' , 'what else hasn't she told you' is ridiculous. What she does on the weekend is none of your business. If she wants to work in a shop, she can and she doesn't have to tell you (though would have been nice if she had obviously). You knew she was looking for another nanny job, how is the fact that she has another job while she's looking different? You also know she's working for you 2 days a week, there are not many nannies that can afford to only work 2 days a week. If you had asked and she had said 'no' then she's lying, to not mention it really isn't the same.

Fraktal · 26/04/2012 10:54

I'm with squiffy. Inform her that the gross rate stands, you will not be absorbing the cost and her net pay will be adjusted down accordingly.

What did you do about her P46?

revellish · 26/04/2012 10:58

When she told me about it I said that we would look at it and work out what we would do. Now that I have worked out the difference and seen that it is quite significant I don't feel like I can just say 'that's OK' and accept it. I also don't like that she deceived me. :( But I feel like I should try to work it out for the sake of the children because our first nanny had some health problems and left after 4 months or so, and we have only had our new nanny 2 months and I don't know if my 3 year old and 1 year old will cope with another change. I also don't know if I can go through the whole process again! :(

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revellish · 26/04/2012 11:04

Thanks for the advice everyone. I think I will tell her that the gross salary stands and go from there. I will report back with what happens.

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Gigondas · 26/04/2012 11:28

You have looked at it and have come to this position.

And holy - You are right lots of nannies have other jobs etc. they are upfront about them and it's discussed at interview (eg one candidate I saw was open about not being able to work late on Thursday due to course commitments ). This situation sounds different- the fact she would need another job was mentioned . She didnt tell that actually had one- that is quite different.

I can see why you are wary about going into whole process again. Aside from this have you been happy with new nanny? If so maybe can discuss pay and be quite open about needing to be able to trust and rely on her which means no omissions /half truths.
If you aren't happy then I think long term it I probably better for you and kids to look elsewhere. Yes it is disruptive but presumably everything else in routine is consistent -and ultimately a nanny you aren't happy with is likely to cause more issues than going with status quo.

LadyHarrietdeSpook · 26/04/2012 11:32

Basically the shop probably said to her: sod off, you've been working for us, we're not sharing your tax code with anyone. It may be the case that she was just very naive thinking she could negotiate this somehow. If she was indeed thinking it through, and she may have been.

nannynick · 26/04/2012 12:25

Your job is 2 days per week, so you could guess that someone would probably be needing other work in addition to your job. Great that you put Gross salary in the contract - as you can just pay that. Net pay example calculation would have been on a 810L taxcode, or something like that - and is just an example, as until you have a P45 or P46 you don't know what taxcode your nanny will be on, and it can change during the time they are your employee.

Ideally she should have told you about other work she did but she does not in my view need to give you financial details about that work. She may not have to tell you about other work at all, depending on what clauses you have in the contract.

Not a great start to the job but it is something you can recover from - talk to her about how you need to be able to trust her to care for your children, trust her to arrive at work on time, that sort of thing. It takes time to build trust and being honest about things at the start can help. During interview process if she had mentioned she worked at the weekend, would that have made her unsuitable for the job? Personally I doubt it would have made much difference to your decision to employ them - but would have meant that you knew from the start that the taxcode may well be BR.