Gross and net rates of pay

[elliott]

I'm looking for a pt nanny for just a few hours a week and the general advice on here seems to be that it is better to offer a gross rate of pay so that my outgoings don't change wildly depending on her hours of work at any other jobs. But I'm not sure how to work out a reasonable gross hourly rate which will (broadly speaking) equate to the kind net figure that woudl be the going rate (which I've been advised is around £6.50 locally).
So, would you mind telling me what your net hourly rates of pay are, and what these work out to gross (i.e. including tax and employee's NI, not employer's NI), and whether you your nanny's only employer.
Thanks!

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I think nannyjob has a reckoner .. will try to find it

\link{http://www.nannyjob.co.uk/employment/taxation.htm\not sure if this table helps .. it starts at £100}

I think nannies deal in net pay though not gross

There are tables of gross vs net conversions on nannytax and nannypaye websites. I found the one on nannypaye to be better...the one on nannytax doesn't seem to include employer's NI which is payable on top of the gross pay.

I employ a nanny as part of a nannyshare - we agreed a gross salary with the nanny (she had come from a nursery background and was used to being salaried) and it was a bit of a fiddle to work out backwards and forwards from gross+employers NI to net pay. We had a figure that the nanny wanted to earn (net) and an amount that we could afford to pay (gross+E NI), and went forwards and backwards to get a monthly gross salary, and then a weekly net salary..then an hourly net rate.

I wrote out for the nanny the gross salary, the gross amount per month and then the net amount per month (if her tax code was standard) so she could see what the gross salary meant to her..and let her compare with other jobs.

Thanks Twiglett. i know they like to deal in net pay, but I don't want to be in the position where I am suddenly having to pay lots more in tax if the nanny takes another job or splits personal allowances differently. So if i agree a gross rate of pay that is equivalent to the net I would hope to be paying if I was sole full time employer, that will protect me from that. Various people (including at least one nanny!) have suggested this on nanny share threads but i wondered how it would work in practice.

bluebear, yes that's the kind of thing I mean. I suppose the difficulty (for me) might be if the nanny already has another nanny job (or even some other kind of job) that takes her full personal allowance - then her marginal tax on my hours would be very high and her net woudl fall correspondingly.

Yes - def a good idea to agree a gross amount. Much more important for people with part-time nannys.

As I said, I have given the nanny an estimated net figure, assuming that she will only work for me and the other share family (we have a joint contract and are paying her jointly, but we have divied up the gross salary between the 2 of us, so we don't have to work out who owes what tax).

It's a shame that part-time nannies can't be self-employed. If they work for a few families then it would be so much easier if they were responsible for their own tax! I interviewed a nanny who wanted to be self-employed (she had 2 other part-time jobs as well) but I couldn't see how the Inland Revenue would allow it, and didn't want to be hit by a retrospective tax bill some years down the line.

Good luck..