Need to let the nanny go - no contract but feel obliged - help

[AngelaD]

She's such a nice girl but doesn't really help in that she has a sports car so can only have or pick up one of my three children.
I've not had any formal agreement in place at all and i would like to keep her as a babysitter, any advice ???

I could be wrong here Uwila, but I don't think anyone is saying AngelaD is a bad person, it is more we are suggesting that she might want to cover her own back if her nanny kicks up a fuss about being made redundant. Well, that is certainly what I am suggesting.
It probably won't be a problem at all, but by paying cash rather than employing her, AngelaD is very exposed if the tax people were to find out. It is Angela they will pursue for the unpaid tax & NI, not the nanny.

Agree with Bugsy2.

The point is that AngelaD's nanny IS an employee. We're not saying she ought to be, we're saying she is. Even if she thinks she isn't and AngelaD thinks she isn't - the law thinks differently. Having a contract doesn't make you an employee. Working regularly for someone in their home does. The contract just formalises the terms of employment. Without a written contract, all the "default" statutary terms about notice and NI and all that stuff kick in and AngelaD is legally liable to give 4 weeks notice, and pay a shedload of tax and NI on top of whatever she has paid her Nanny already.

However, if the arrangement to date has been casual and cash-in-hand it's likely Angela's nanny doesn't want to make herself known to the tax man at this late date and the whole thing can hopefully be sorted out between them informally. But if that discussion turns bad, AngelaD needs to know what her exposure is.

Though it is a bit of a sidetrack - I think AngelaD's original question was "how do I approach this conversation?" - which I don't have any magic solution to, I'm afraid.

No I can't afford the nanny, i don't work, clear this has got a bit out of hand.

No I can't afford the nanny, i don't work, clear this has got a bit out of hand.

to clarify, she does other work through agencies at least 3 days a week. she put a card in a shop window offering her services and asked to be paid cash in hand. i felt i couldn't do this so paid for her registration and first aid course and have kept her tax and ni to one side so that SHE can pay the inland revenue when her bill comes through. i would really like to stay on good terms with the girl, my kids love her and all i need is an occassionally babysitter, it was that aspect i was looking for advice on, all gratefully recieved. thanks

Angela, I am sure if you just tell her that you love having her, but that you have to tighten your belts a bit and think she ought to look for another job - it won't be a problem. If she works for other agencies, then this isn't going to ruin her life or probably really come as a huge shock to her either. I would tell her that you can afford to keep her with you until xx & give her a specific date, so she knows you really mean it.