Nanny(share) price hike before starting!

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We arranged to join a nanny share with another family that employ a nanny full time to look after their two children (3yrs and 6yrs). My LO will be with the nanny and the 3yr old from 9-1pm 3 days a week. We made this agreement months ago, and the nanny sent through a contract stating that the cost would be 4.75 per hour.

She just bought a new house, and we have just started doing settling in sessions this week as I return to work next week. I received a text from her today saying she's done some calculations and her rate for us will now be 5.55. Which is a significant hike. I replied asking if she could explain why this was different than her original price, and if her prices were going to change often.

She replied saying she spoke with an agency (she is self employed) and that she feels she's been working underpaid. So she's changed the rates for both us and the main family.

What would you do? We are in somewhat of a pickle as I start work so soon and we like the set up. But then again my LO isn't attached to her yet, and if it's going to be the start of a trend, then I'd rather get out before getting in if you know what I mean.

Any thoughts?

the nanny sent through a contract stating that the cost would be 4.75 per hour. Why the nanny? I would have thought that your agreement would be with the other family and between the two families you would give the nanny a contract.

nanny share with another family that employ a nanny full time
So how can the nanny be self-employed? They are in full-time work, not doing lots of little bits of work for numerous different people on an ad-hoc basis.

Could you find a childminder, or nursery - are either of those an option?

Thanks for your reply Nannynick. We're new to this nanny game - we just replied to an add from a family saying that they had hired a fulltime nanny but were looking to lessen their own costs by sharing her. And then when we got together with them, they said we'd deal with her for her pay. We didn't search for the nanny together, if you see what I mean.

I am sure we could find another nanny or childminder/nursery, though this option is quite convenient in terms of location and that she is willing to ferry LO to my MIL in the afternoon.

I'm just a bit put off by the sudden price hike, though I still think it's a fair wage, and it's still probably cheaper than any other option. Since we have MIL free in the afternoons, we don't need that many hrs and the childminders/nursery aren't as accomodating. Therefore we'd be paying for time we wouldn't use.

Presuming she is charging the other family the same, she is getting paid £16.50 an hour. If she did this full time she would be on more than £30k a year. I think that seems pretty high, but might be normal where you are- certainly not in Edinburgh.

This sounds dodgy to me.

Is the share based at the other families house? Or at the nannies?

Nannies can't be self-employed.

Nannies don't send contracts/set wages, you (the employer) do that.

What you're describing sounds like a childminder not a nanny.

Scarlettsmummy2 she'd only be getting 5.55 x 2 as the one little girl is at school, it's just a 3yr old and my 13m old in the mornings. So she's getting 11.10/hr (assuming she's charging them the same). So it'd be just over 21K, we're in Cambridge which is expensive...so I've been using London prices as a guide.

HolyCameraConfusionBatman - it's at the other families house, they employ her 'full time' though she is not paid when the 3 yr old is at reception. But I do think the situation is a bit confused from normal.

Why can't nannies be self-employed? I didn't know that.

You can't just decalre yourself 'self-employed', you have to meet a set of strict criteria. The job of a nanny very, very rarely meets these criteria. If she is working for one/two families regularly it is very unlikely that she would qualify as self-employed. You may find what is actually happening is that you are paying cash-in-hand. That is illegal and I believe you can be hit with a big fine (and I mean you, not the nanny).

You need MrAnchovy or Nannynick, they'll be able to advise you on what the criteria is for being self emplyed and what the ramifications are if she doesn't qualify as self-employed.

Nannies are an employee under usual circumstances, they are not like a plumber coming to do a specific task when they decide to turn up. The nanny does not have much control, if any. A full-time nanny would not be self employed, as it's a job like any other - the family are calling the shots not the nanny.

If in any doubt about a persons employment status, make a Employment Status Enquiry by contacting the Status Customer Service Team.

Here is a brief overview from HMRC about Employment Status.

If this nanny was self-employed, why would they agree to not being paid when the 3yr old was at pre-school? The nanny is still On-Call I expect for any problems that may arise such as collecting a sick child, schools heating failure.

crumbs, I'll have a chat w/the other family and see whats up. Thanks Nannynick!

You need to approach the mN HQ before you approach the members.