National Insurance

[laalala]

What do I have to do as a nanny about national insurance. Anything? Or do I not earn enough so don't have to bother about it?

Think we will need more information.

As a nanny you are employed by a family to care for their children, for specific hours, on specific days, as determined by your employer. Is that the case?
Are you getting payslips when you are paid? Do those payslips not state on them about deductions (Income Tax, Employee National Insurance)?

How much are you earning? MrAnchovy's PAYE Caldulator will tell you what Income Tax and National Insurance would apply based on your Gross (or Net, as it will do the reverse calculation) wage.

Are you a live-in nanny? You mention not earning enough... are you not earning much, such as say under £100 a week?

Yes I'm a live in nanny, I don't get a payslip just given the cash. I get £130 a week.

Your employers should be paying national insurance and your salary should be gross. Your employer should pass on NI and tax owed by you to HMRC

HMRC: PAYE Basics

Your pay level is above the Lower Earnings Limit for National Insurance (NICs). However your income (assuming it is your only income) is not high enough to attract Income Tax or National Insurance. So your employer should have registered as an employer (due to paying you above the Lower Earnings Limit for NICs) but they will not be operating full payroll (PAYE).

Okay thanks. So I don't have to do anything then, right?

If you are self-employed you should pay your own NI contributions either 6 monthly or weekly by direct debit. If you earn under the threshold you can apply for a small earnings exemption where you won't need to pay. If you are employed (PAYE) it's up to your employer to pay your contributions. Either way you should know as if you aren't paying then you won't be entitled to maternity allowance or basic state pension.

Hope this helps.

Not sure. MrAnchovy or someone else in the know may be along at some point, they will know more about what happens in the situation were you earn that amount per week.

What has prompted you to ask about National Insurance?

Would I be right in saying that your job role is like that of an au-pair, helping out around the home, and that you are quite young (such as under 25) and that this may be your first job? Your pay is rather low for a nanny, thus you may be more of an au-pair, though may not be doing language classes.

How many hours of work would you say you do?

You should still get a payslip even if below the threshold because you need records eg if you earned more than the minimum.

Erm okay, I'm only asking as someone's mentioned I should have sorted it out already, have been with the family for a few months now. It's my first job working as a nanny yes and I am young. I work about 50 hours a week.

You sound like an employee to me. Your employers should therefore be paying NIC and PAYE for you. If they are not paying your NIC you may not be able to claim your full state pension when you retire - it is therefore very important that they do pay your NIC. I am not sure if they will need to make deductions for employee's NIC too.

Do you live as part of the family? Eat meals with the family and socialise with the family? If you live as part of the family then you are exempted from the minimum wage, but if not then you should be paid the minimum wage with a small deduction for your accommodation link.

Paying NIC is also important for being able to claim some benefits - so is important well before you retire.

You earn £130 a week for 50 hours work?

That's a very low wage but if you feel happy and it's a job which is gaining you experience (so you consciously chose to accept it) then it may be worth the short term low income. I agree you need to be living as part of the family though.

Do you think things aren't above board?

No tax or NI is payable at £130pw. However at this level (above £107pw), the employer should be registered for PAYE and reporting your earnings because as others have mentioned you earn National Insurance credits towards the basic state pension, as well as jobseekers allowance and other benefits.

You should receive a payslip each week, and it is normal (although not mandatory) to show your National Insurance number on the payslip. Has your employer asked you for your NI number?

No I thought not. They are breaking the law.

Do you have a written contract? Or a written Statement of Employment Particulars? No I thought not - they are breaking the law.

What paid holidays are you entitled to? Is it at least 5.6 weeks (although 1.6 weeks of these can be bank holidays)? They may be breaking the law.

Breaking the law regarding employment is a form of exploitation. Paying £130 plus board and lodging for 50 hours work is also a form of exploitation, even if it is your first job and you are young (I presume you are at least 18, and that the 50 hours is full-on work and not just babysitting while kids are in bed).

Now for practical things - do you have a National Insurance number? What nationality are you?

It's low because it includes accommodation, no bills and all food included whilst on duty. I don't get a pay slip but I do have a contract. I have a national insurance number, I'm British.

How much experience do you have? Is this your first job?

Do you look after the children on your own for 50 hours, or is the Mother there most of the time?

For my first live in Nanny Job I was paid £320 a week plus my tax/NI for doing 55hrs.
I had my own room with ensuite, didn't have to pay any bills and I had all food and drink provided 24/7. I also received an Oyster card that they topped up each week.
That was 6 years ago and I know that all my live in nanny friends get between £350-£400 now.
I only had 1 previous part time nanny job under my belt at that point.

£140 seems very,very low even for a first time job.I would check that they're paying your tax for you as they should be.

"It's low because it includes accommodation, no bills and all food included whilst on duty."

The going rate for someone with no experience in this kind of role is £200-£250. In addition the employer would normally provide either a car (unlikely for someone under 21 or even under 25) or a bus pass, and a mobile phone with £10 or so a month top-up, both to be used while on duty but available for occasional private use.

"I have a national insurance number, I'm British."

In that case it is very important that they properly report your earnings under PAYE, otherwise you are not building up entitlement to any state pension. The fact that they do not give you a payslip makes me suspect that they are not intending to report your earnings. It is currently impossible to check this because these returns are only made annually, but from April they need to be made each time you are paid.

I think the best thing for you to do would be to contact a Citizens Advice Bureau, or possibly ACAS and talk through the situation.

If you are an au pair there may be some special rules for that about tax.

No there are no special rules about au pairs for tax.

It's my first job as a nanny, I've had a previous non childcare job, and I have a qualification in childcare. It is a bit low but as I didn't really know what I was doing when I took the job I didn't know it was low. I guess you learn from your mistakes, but it's good experience in the long wrong. I'm not an au pair no all of the 50 hours are sole charge of the children. It does include an Oyster card too.

I think there are in relation to the minimum wage for au pairs, but sole charge is not an au pair anyway so that is not relevant.

I wonder how they work out how much the benefit of free board and lodging is worth in working out if someone is paid more than the minimum wage?