I have just started a nany share in my house one child each How does the money work?

[nicrulay]

I wondered if anyone could give me adivce on how to work out financial part of nany sharing. I have a nanny 3 days a week for my 3 children Two are now at school so am sharing 3 days a week with another mother who is lookingfor 9-3pm 3 days a week term time only. I am increasing nannys money by 1.50/hour as this is what she wanted and I am splitting it 50/50 for the 9-3. It is all in my house is this right or should other share contribute towards electricity, wear and tear etc and if so how much?

This is something you really should have sorted out before the share started.

Every share is different so it's up to you and the other family to decide what suits you. I would say that the other family does not need to contribute to wear and tear or electricity. Firstly, I don't think that another child is going to impact much on your electricity bill or wear and tear. Secondly, you are getting the benefit of having the share based at your house and this balances out the negatives of hosting.

You could suggest hosting one week at your house and one week at their house if that is practical?

It's also worth remembering that although your nanny only physically has the two children during the day, she is also 'on call' for your other two i.e. if the school closed unexpectedly or one of them was ill. Even though you and the other family are paying the same you are getting an 'extra' service.

Agree with the 50/50 split - you have the advantage of not having to get your children up and ready to take out to childcare and you have the benefit of children's laundry being done/play areas tidied and sorted etc (presuming nanny does these duties, most do) so I think this balances out the wear and tear/electricity/snacks and lunch.

Make sure you have appropriate contracts in place: the arrangements you describe sounds like you are effectively running a childcare service which is not what you want to be doing. If you do not already use a payroll agency that can provide suitable contracts (the best arrangement is usually for each family to employ the nanny separately and for there to be a contract between the families dealing with a contribution for food etc. and also deal with illness etc. as others have mentioned).

I was thinking about how it works if you pay all the wages. If you charge the other parent half, will you have to declare that as business income and pay tax on it? If you both pay wages separately, make sure you agree gross pay, so you don't get stung by the tax code.

"I was thinking about how it works if you pay all the wages. If you charge the other parent half, will you have to declare that as business income and pay tax on it?"

No but your home insurance may not cover any injury to the other family's children, if the other family pulls out you are going to be liable for the increased salary unless you are very careful, ...

See that's why I stopped myself at the beginning of this thread ... I have thoughts and ideas without the knowledge to back them up :)

Thank you all for thoughts Has definitely helped me think things through properly!!! Hadnt really thought about if school closes etc as probably wouldnt expect my nanny to have all four children.!
First time I have logged on to Mumsnet and is definitely a great forum