Other costs other than Nanny's Gross Wage?

[okiecokie]

I am in the process of employing a nanny. Other than her gross wage what other costs should I expect to have to cover? I am thinking specifically about the following:
Ofsted registration
Employer?s public Liability insurance
Her annual insurance?
Car insurance (the gap between the cost for her personal use and the cost for using her car for business use)
CRB check when it is up for renewal?
First Aid certificates renewals when they come up?
Nannytax or other agency annual fee?

Are there any other costs that I have missed and out of these am I expected to foot the cost for all of the above or would the nanny cover some?

Employers National Insurance (another tax)

Weekly/monthly kitty

potential redundancy or maternity costs. Whilst they get maternity paid by the state, you still have to pay for the accrued hols during the maternity period. My nanny got pregnant within a year or us employing her so its a real cost you should bear in mind.

I assume if I use an agency to sort out payroll then they will sort out Emplyers National Insurance too onehand?

Employers NI is the other big one, which is calculated based on the salary you are paying your nanny. Use MrAnchovy's PAYE calculator to get a feel for what Employers NI will be.

You should not be paying any insurance policies your nanny needs to work. In the event of a claim if you have paid the premium the insurance underwriter may deem the insurance invalid, as the insurance is to protect the nanny against a claim made by you. Hope that makes sense. Your nanny should consider what level of cover they need... for example, does their current motor insurer provide adequate cover, or will they need to use a specialist broker to arrange cover. Nanny Car Insurance via MortonMichel (insurance broker) - actual company providing insurance will vary... broker will shop around for best price policy based on your nannies circumstances.

You should look into Employers Liability Insurance. This is often provided via your home contents insurance policy. However some insurers have removed this cover to help reduce cost of policies, so dig out your Home Contents policy and read the wording carefully. You can buy it separately but it can be around £150... MortonMichel: Employers Liability Insurance

CRB check is part of the Ofsted Registration. If they are already registered and you don't feel happy to accept the check that Ofsted did at initial registration, then some nanny agencies may process a check on your behalf for a fee... can be quite a high fee - ask local nanny agencies. I would expect it to be £50-£100 sort of range.

First Aid Certificate (every 3 years). Is that a training course you want to pay as the employer, or do you expect your employee to keep upto date with their own training? Courses can cost £100+ can vary by area.

Nanny Payroll service will cost you £120 or so... depending on what you require, who you use. Shop around the various providers to see what services they offer for a price you are prepared to pay. You can do payroll yourself via HMRC Online.

Consider weekly activities budget - this may vary from term-time to school-holiday time. What is a reasonable budget to one person may be different to another. Personally I say that £5 to £8 per day is probably reasonable in most cases. Try keeping a track of how much you spend a week on outings/misc child related costs.

Nannies food & drink whilst on duty. See: Live Out Nannies and their Lunches thread.

Mileage costs. Mine used to charge 40 pence a mile, so it soon adds up. However the nanny paid her own car insurance, first aid certificates and the CRB check was included in the ofsted registration. Good luck.

Yes a payroll company will calculate how much Employers NI is due and remind you of when to pay it.

HMRC: Travel & Fuel Allowances
Mileage max amount is now 45p per mile for the first 10,000 miles per year.

As a nanny, I can do 3000 miles a year. So mileage can be a big cost.

the 40p / mile mileage cost is intended to cover all motoring expenses associated with the driving on duty, so you don't have to pay her insurance / the difference in cost for any driving for business policy. You should never under estimate how much these costs rack up, especially in school holidays when there are various play dates / outings to go on. I probably get charged an additional £50 / week in term and more in the holidays on mileage / expenses (from picking up a pint of milk to buying snacks when out / entry fees to playgroups etc). It is probably worth having the common sense discussion about combining journeys as soon as she starts if she's new to nannying - our new nanny came from a nursery and thought nothing of doing the same 10 mile round trip 3 times in a day for school run / library visit / nip to the shops. Point out where the nearest shops etc are, they may not be teh ones she's familiar with.
Our household insurance covers e'ers liability and nanny's insurance is her own cost.

Thanks for all of this, it helps a lot. There seems to be a lot of payroll agencies. I don't really want to do it myself so any recommendations on which are OK. I have been impressed with nannytax but their annual fee seems to be on the high side..

I use PAYE for Nannies and really like them. they are tolerant of my regular questions apart from anything.