Perks of the job...

[JinxyCat]

Hullo all! I've previously posted about my lovely AP transitioning to be our nanny when I go back to work - but have a quick question.

We currently give her a travelcard (zones 1-2) as part of her AP pay.

What is 'usual' for nannies in London? Do families pay for PAYG travelcards, or go 50/50 on an annual one - or pay for it in full?

We've discussed salary changes once I go full time, but I've just realised that I didn't mention the travelcard (her current one runs out in October, so we've got a while to go before I need to worry).

runs off to enjoy sunshine

Our nanny has a pay as you go oyster card which she uses for work only.

I think it is up to you what you decide to do but all I would say is that if you pay for her travelcard for personal use then I think it amounts to a taxable benefit in kind.

With nannies on a full nanny salary it is normal to pay for a travelcard if she needs it for work (i.e. daily travel with children to school and/or holiday activities), otherwise not. If she needs it for work there should be no tax implication with a travelcard (even if HMRC try to argue that there is "significant private use" the marginal cost to the employer, and therefore the value of the benefit, is nil), but there may be with PAYG.

With au pairs it is normal to provide a travelcard or PAYG whether she needs it for work travel or not. Provided income is below £8,500 a year (including travelcard and other benefits) there is no tax implication.