Calculating nanny gross pay

[Living]

Hi

We live in the middle east at the moment but are returning to the UK for one year in a few months. We're considering asking our current nanny/housekeeper to come with us for the year but need to be certain that it's something we can afford before offering it to her.

Can anyone direct me to any resources so I can start to work out how much we will actually have to pay out (and also how much she'll get net)? I anticipate we'll be paying NMW but unsure on what hours we can/will offer. She'll be live in with us providing food (and I imagine an initial allowance for warm clothes!) if that makes any difference.

Obviously also need to look into the visa costs and logistics as well but this probably isn't the right place for that.

Thanks

If you pay minimum wage, multiply that hourly rate by her hours per year to get a gross salary. Eg 30 hours a week 52 hourly wage = gross salary

Then use listentothetaxman.co.uk to work out the net position. It also give you the employer national insurance figures which you add to gross salary to get the cost to you.

Wow that was quick. Thanks and I'll take a look at the link - it's particularly the NI I'm struggling with. Don't suppose there's anywhere that will work it out with start and finish dates? Her employment will be one year split over two tax years.

Is there anything else I should have with a nanny I might have forgotton about - eg additional insurance coverage?

Also (and sorry to hound) - how complicated is it to deal with all the tax etc. Should I be paying an agency to work it out for me or am I ok on my own?

Not sure about splitting years for NI. You could split the salary yourself and enter the details into the website then change the tax year but it depends on whether the allowances and tax rates for that year have been announced yet.

Insurance - you need employer liability insurance but you might be covered by house insurance (we are so no extra cost).

Will you be working here? If so, if your employer has a childcare vouchers scheme, your nanny can register with ofsted so you can pay her with the vouchers (unlikely to cover all of her salary though). It costs to register - £103 - plus need a first aid certificate and CRB check too.

I use an agency for payroll and tax as easier. There are some cheap ones out there (mine charge £200ish a year which is a bit much so I plan to move when the year is up)

as live in there is no nmw so you could say for example £370 gross a week which is £300nett and over the year just over £20k gross

obv as you are having 2 tax years/codes this year till april 2013 will be less tax if not paying any tax if only here for 4/5mths

Mr A's fab tax link

and yes easier to use an agency - most employers have used this one, cheaper then nannytax and to me more professional tax agency

That's not true re NMW and live in nannies. It's not clear cut - something to do with leisure activities etc etc. if they're a full member of the household then no NMW applies. Whatever that means.

really?? has that changed as used to always be nmw didnt apply to live in, hence could work a 60hr week for example 5 12hr days and be paid a terrible salary :(

www.payefornannies.co.uk/parents/minimum_wage.htm

Please note, only an employee who lives as part of the family (e.g. Eats meals with the family, socialises with the family and friends of the family) is not covered by the National Minimum Wage. All other employees are covered by the National Minimum Wage even if they live-in

hmmmmmmmmm seems if you eat with family then doesnt apply

Yes it's all a bit

I'm sure many nannies don't eat say their evening meal with the family but might do lunch for the kids?! Ridiculous.

Thanks everyone

Whilst our nanny has been with us for three years now I'd really hesitate to argue whe was a member of the family. At the end of the day there's an employer/employee relationship - she doesn't eat and socialise with us (unless we're out somewhere of course - wouldn't make her sit at a separate table!).

I did here somewhere there's an amount that we're entitled to deduct from NMW for bed and board. Any ideas? Don't want to be exploiting but want to explore all options to make this a goer.

Not sure the Ofstead application would be a goer as I think my employer will be grossing up my salary - unlikely to allow me childcare vouchers on top. That said, how complicated is the application process? Our nanny's English isn't (that) great - she'd find any sort of written exam very stressful.

Ah would probably help if I read the link. 33.74 a week

Sorry for wasting everyone's time - just checked and the visa regs changed in April so she's no longer able to come for more than six months. Ah well, was hoping we'd not have to make her redundant!

Kalayaan a charity providing advice and support for domestic workers has some information about NMW and the Accomodation/Food deduction. It's under Workers Rights, Employment Rights section of their website. HMRC website will also have information about it but the Kalayaan website is probably easier to read, plus more focused on Domestic Workers.

I think it's good that you are looking at paying NMW.

Yes visa regulations have changed this year, so there may be restrictions. Domestic Workers Visa is now restricted to 6 months.

Maybe you could have her come for 6 months, most of it was working some as a paid holiday time so she can see what it's like in the UK. At the end of the 6 months she then is made redundant and she goes home. That may also give you time to find someone in the UK to help you for the the rest of your time in the UK.

Personally, I think it's terrible anyone doesn't pay NMW!

Actually seriously considering paying her her to go back to her home country for a year.Talking it over with DH we might go for the six months (so we've got certainty around childcare for the first six months of the move) and then she goes home for the last six months.

Problem is if she tries to come into our current GCC country from her home country we have to go through an agency. There's a very thin line between the manpower agencies and people trafficing (IMHO) and I would prefer not to give them any of my money!

Are you going back to the country you're in? Would it be worth seeing whether you could find her a job for the year there through the expat network?

Reading your OP I was thinking it was unlikely to be a goer due to the visa complications :(

We are going back to the same country. The country we're in requires employer's permission to transfer sponsorship. One of her options will be to work for someone else but a) I think it's fairly unlikely she'll manage to match the salary and conditions she's on with us (although who knows) and b) if she does go to someone else, there's no guarantee that they'll let her transfer back to us when the year's up (and she might not want to of course).

So thinking about it options are:

1. UK for six months on NMW (Philippines) for six months (paid but at a lower rate than her current salary) - overall I think this will work out as more money than if she'd just worked for us here for a year
2. Phillipines for 12 months (paid but at a lower rate than her current salary, obviously free to work in the Philippines in that year)
3. Find another employer here (we'll help her if she wants to explore this)
4. She goes home full stop

Just waiting for confirmation on how much my package will be in the UK before I can be certain 1) and 2) are affordable options. Feel terrible that we haven't come clean with her as to what's happening as of course she'll have picked something up.

Hmm - looking at the information online the visa can't be extended for more than six months. I'm wondering whether you can apply for a completely new visa after six months.